A comprehensive reference for 1031 exchange tax treatment, withholding requirements, and state-specific rules for all 50 states.
Conformity: Conforms to §1031. Withholding: 3.33% of gross sales price. Clawback: Yes—FTB tracks deferred gain via Form 3840. When replacement property is sold, deferred gain is taxed regardless of current residency.
Conformity: Conforms to §1031. Withholding: 8% of gain or 4% of gross price. Clawback: Yes—Oregon has annual reporting requirements. Form OR-18-WC must be filed for exemption.
Conformity: Conforms to §1031. Withholding: 5% under HARPTA. Clawback: Yes—Hawaii taxes deferred gains at 7.25% (long-term capital gains rate) when replacement property is sold.
Conformity: Conforms to §1031. Withholding: 9% (includes 4% millionaire surtax for high earners). Clawback: Yes—deferred gains tracked and taxed upon sale.
Conformity: Conforms to §1031. Clawback: Yes—Montana taxes deferred gains when replacement property is sold, even if you've moved out of state.
Conformity: Conforms to §1031. Withholding: 7.7% of capital gain. Exemption: Forms IT-2663 and TP-584.1 must be filed before closing.
Conformity: Conforms to §1031. Withholding: 7.5% (individuals) or 8.25% (entities). Exemption: Form MW506AE required 21 days prior to closing.
Conformity: Conforms to §1031. Withholding: 7.5% of gain (individuals); 8.25% (entities). Exemption: Form MW506AE at least 21 days before closing.
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming — No state income tax and no withholding requirements.
For the interactive state-by-state guide with searchable filters, visit the States page.