AZ state capital gains tax rate

4 Replies

Hello all! need your help once again :) does anyone know what AZ state capital gains tax rate is? I've research all over the internet but I come up with 3.4 - 4.95.   Trying to decide whether doing a 1031 is worth it and trying to figure all taxes if we don't do it.....tia!

@Saul Trejo , Arizona includes capital gains into your gross income I believe.  There's not a specific capital gains rate.  And I believe they just this summer passed a bill lowering the top tier to 4.5??? You'll need to verify locally.  

If your state of residency is IL you'll want to make sure you're not going to be subject to IL tax on the sale in addition. Most states of residency will want a piece of that gain.  Although they typically give you a credit for taxes paid in the state of sale.  So you could conceivable be paying tax at whatever is higher - IL or AZ.

@Scott Mclaren is right about depreciation recapture.  11 years of recap at 25% is not going to be just a nuisance amount.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here