How your state treats a structured installment sale
Federal deferral under §453 is only half the answer. Select your state to see conformity, sourcing rules, withholding, the PTE election, and the traps that matter before closing.
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Conforms to §453Conforms — key trapsNo state income taxComing soon
Quick compare
51 of 51 jurisdictions published — full pages are added on a rolling basis, oldest review first.
| State | Follows §453 | Top rate | Withholding | PTE election | Key trap |
|---|---|---|---|---|---|
| Alabama | Yes | 5% (federal tax deductible) | Yes — 3%/4% of price (nonresident realty) | Yes | Closing-table withholding at 3%/4% |
| Alaska | No income tax | 0% | No | N/A | — |
| Arizona | Yes | 2.5% | No | Yes | — |
| Arkansas | Yes | 3.7% (50% CG exclusion) | No | Yes | — |
| California | Yes | 13.3% | Yes — Form 593 | Yes | Sourcing follows the gain |
| Colorado | Yes | 4.4% | Yes — 2% (nonresident realty) | Yes | Farmer-only capital gain subtraction |
| Connecticut | Yes | 6.99% | No | Yes | 12.5% PTE credit haircut; only state gift tax |
| Delaware | Yes | 6.6% | Yes — Form 5403 (realty gain) | No | Incorporation here ≠ taxation here |
| District of Columbia | Yes | 10.75% | No | No | S corps taxed as corporations; nonresidents immune |
| Florida | No income tax | 0% | No | N/A | — |
| Georgia | Yes | 4.99% | Yes — 3% (nonresident realty) | Yes | 3% nonresident realty withholding |
| Hawaii | Yes | 11% (7.25% on capital gains) | Yes — HARPTA 7.25% (realty) | Yes | HARPTA withholds on price, not gain |
| Idaho | Yes | 5.3% flat (60% deduction, qualifying ID property) | No | Yes | Equity sales forfeit the 60% deduction |
| Illinois | Yes | 4.95% | No — entity-level only | Yes | 1.5% replacement tax at entity level |
| Indiana | Yes | 2.95% flat (2026) + county tax | No | Yes | County tax rides on top |
| Iowa | Yes | 3.8% (flat) | No | Yes | Retired farmer election — one shot, choose well |
| Kansas | Yes | 5.58% | No | Yes | — |
| Kentucky | Yes | 3.5% (flat) | No | Yes | Inheritance tax classes; LLET rides the entity |
| Louisiana | Yes | 3% flat (2025 reform) | No | Yes | — |
| Maine | Yes | 9.15% (7.15% + 2% surtax) | Yes — 2.5% REW (nonresident realty) | Yes | New $1M surtax — the schedule manages it |
| Maryland | Yes | 6.5% + county (+2% CG surcharge) | Yes — ~8% (nonresident realty) | Yes | $350k surcharge cliff — schedule with care |
| Massachusetts | Yes | 9% (5% + 4% surtax) | No | Yes | Millionaire-surtax bunching |
| Michigan | Yes | 4.25% flat + city taxes | No | Yes | FTE election locks three years |
| Minnesota | Yes | 9.85% (+1% NII surtax) | No | Yes | 1% NII surtax; look-through sourcing |
| Mississippi | Yes | 4% flat (phasing toward zero) | No | Yes | — |
| Missouri | Yes | 4.7% (0% on capital gains) | No | Yes | Gain is exempt — interest and recapture aren't |
| Montana | Yes | 4.1% on LTCG (5.65% ordinary) | No | Yes | — |
| Nebraska | Yes | 4.55% (3.99% in 2027) | No | Yes | County inheritance tax |
| Nevada | No income tax | 0% | No | N/A | — |
| New Hampshire | No individual income tax | 0% (BPT at entity level) | No | N/A | BPT reaches the business's gain |
| New Jersey | Yes | 10.75% | Yes — GIT/REP (real property) | Yes | GIT/REP prepayment at closing |
| New Mexico | Yes | 5.9% (40% CG deduction) | No | Yes | — |
| New York | Yes | 10.9% | Yes — IT-2663 (real property) | Yes | Departure accrual; S corp deemed-sale sourcing |
| North Carolina | Yes | 3.99% | No | Yes | Scheduled rate cuts reward deferral |
| North Dakota | Yes | 2.5% (40% CG exclusion) | No | No | No PTE election |
| Ohio | Yes | 2.75% (BID: $250k + 3%) | No | Yes | Business-income classification decides everything |
| Oklahoma | Yes | 4.5% (OK-asset gain deductible) | No | Yes | Holding periods gate the deduction |
| Oregon | Yes | 9.9% (+ Portland-area taxes) | Yes — escrow (nonresident realty) | Yes | $1M estate tax exemption |
| Pennsylvania | Yes, with quirks | 3.07% | No | No | No installment method for intangibles |
| Rhode Island | Yes | 5.99% (surtax phasing to 8.99%) | Yes — 6%/9% (nonresident realty) | Yes | Deferral walks into the rising surtax |
| South Carolina | Yes | 5.21% (44% CG deduction) | Yes — 7% of gain (nonresident realty) | Yes | I-290 withholds on every installment |
| South Dakota | No income tax | 0% | No | N/A | — |
| Tennessee | No individual income tax | 0% (F&E at entity level) | No | N/A | Excise tax reaches LLC gain |
| Texas | No income tax | 0% | No | N/A | — |
| Utah | Yes | 4.45% flat | No | Yes | PTE election closes with the entity's year |
| Vermont | Yes | 8.75% (partial CG exclusion) | Yes — 2.5% of price (nonresident realty) | No | 2.5% withheld on the full price at closing |
| Virginia | Yes | 5.75% | No | Yes | Out-of-state PTET credit expired |
| Washington | No income tax — but a capital gains excise | 7% / 9.9% (excise) | No | No | Capital gains excise on the note |
| West Virginia | Yes | 4.58% (trigger cuts pending) | Yes — nonresident realty (per payment) | Yes | Withholding follows every payment |
| Wisconsin | Yes | 7.65% (30%/60% CG exclusion) | No | Yes | PTE election can cost more than it saves |
| Wyoming | No income tax | 0% | No | N/A | — |
Featured analysis
Selling, then moving: how states source installment gain after you relocate
Why a post-closing move to a no-tax state often does not stop your old state from taxing the remaining payments — and what can be planned before signing.