Hi,
I am a green card holder and live in California. I have a rental property abroad which was bought before we moved to US. I am renting it and reporting on my income taxes. The property was bought at $180,000 and I am currently selling it at about $350,000. Would I have to pay capital gain or income tax on my sales profits of $170,000? How is this tax calculated? Is that based on my annual income?

Thanks in advance!

Yes, you DO have to pay capital gains tax on the $170,000, probably at 28%.