Capital Gains Tax on Home Sale Calculator

KEY TAKEAWAYS

• Capital gains tax applies to the profit, not the sale price, when selling your home, calculated as the difference between the sale price and your adjusted cost basis.
• You may be eligible to exclude up to $250,000 (single) or $500,000 (married filing jointly) of gains from tax if the home was your primary residence for at least two of the last five years.
• Long-term capital gains, from homes owned over a year, are taxed at lower rates than short-term gains, which are taxed like regular income.
• Home improvements that add value to your property can increase your basis and reduce your taxable gain—so keep receipts and records.