Capital Gains on Home Sale Calculator
Estimate your capital gain after selling your home, apply the primary-residence exclusion, and see roughly how much federal capital gains tax you might owe.
Estimated Taxable Gain
$0
Your gain is fully covered by the primary-residence exclusion — likely no federal capital gains tax owed.
How We Got There
| Adjusted Cost Basis (price + improvements) | $390,000 |
| Amount Realized (sale price − selling costs) | $655,000 |
| Capital Gain | $265,000 |
| Primary-Residence Exclusion ($500k married cap) | −$265,000 |
| Taxable Gain | $0 |
| Estimated Federal Tax (15%) | $0 |
Understanding the Home-Sale Exclusion
When you sell your main home, the IRS lets you exclude a big chunk of the profit from capital gains tax under Section 121. If you're single you can exclude up to $250,000 of gain; married couples filing jointly can exclude up to $500,000. To qualify, you generally need to have owned the home and lived in it as your primary residence for at least 2 of the last 5 years.
The number that gets taxed isn't your sale price minus what you paid — it's your adjustedgain. That means you add capital improvements (a new roof, a kitchen remodel, an addition) to your cost basis, and you subtract selling costs like agent commission and closing fees. Both of those shrink your taxable gain, so it's worth keeping every receipt.
Want help nailing down those numbers? Our capital gains on home sale guide walks through the rules, the cost to sell a house guide breaks down selling expenses, and the real estate agent commission guide shows how to lower the biggest line item.
This is an estimate, not tax advice. Real tax outcomes depend on depreciation recapture, the 3.8% Net Investment Income Tax, state taxes, partial-exclusion situations, and your full income picture. Confirm your numbers with a CPA or tax professional before filing.
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Frequently Asked Questions
How much capital gains can I exclude when I sell my home?
Up to $250,000 of gain if you file single, or $500,000 if you're married filing jointly — provided you owned and lived in the home as your primary residence for at least 2 of the previous 5 years.
What counts as a capital improvement?
Improvements that add value or extend the home's life: additions, a remodeled kitchen or bath, a new roof, HVAC, or landscaping. Routine repairs like repainting or fixing a leak don't count toward your cost basis.
Which capital gains tax rate applies to me?
Long-term capital gains (assets held over a year) are taxed at 0%, 15%, or 20% federally depending on your taxable income. Most middle-income sellers land in the 15% bracket, while high earners hit 20% plus a possible 3.8% surtax.
Do I owe tax if my gain is under the exclusion?
If your entire gain fits within your $250k/$500k exclusion, you generally owe no federal capital gains tax and may not even need to report the sale. Only the gain above the exclusion is taxable.
Does this calculator include state taxes?
No. This shows a federal estimate only. Many states tax capital gains as ordinary income, so your total bill could be higher. Check your state's rules or ask a tax pro.