Rental Property Sale Tax Calculator
Selling a rental is not like selling a stock: the depreciation you claimed over the years gets 'recaptured' at a flat 25%, and the rest of the gain is taxed at capital gains rates. This calculator totals the federal bill.
How to use this calculator
- Enter original purchase price.
- Enter sale price.
- Enter total depreciation claimed.
- Enter other taxable income (for gains rate & NIIT).
- Enter filing status.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The gain is split in two: depreciation recaptured at 25% (the amount you deducted over the years), and the remaining gain taxed at long-term capital gains rates (0/15/20%) with the 3.8% Net Investment Income Tax if your income is high. Example: $150,000 gain with $60,000 of depreciation → $15,000 recapture tax plus 15% on the remaining $90,000.
Frequently asked questions
How do I avoid the recapture tax?
A 1031 exchange defers both the recapture and the capital gains tax by rolling the proceeds into a like-kind replacement property — the tax comes due only when you eventually sell without another exchange.
Does the primary-home exclusion apply?
Only if you lived in the property as your main home for 2 of the 5 years before selling — and even then, the exclusion applies only to the portion of the gain after the rental years, not to depreciation recapture.
Why is depreciation taxed at 25%?
Because it was deducted at your ordinary rate over the years — the 25% recapture rate roughly recovers the tax benefit you already received, and it applies before the capital gains rate on the rest.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.