Home Sale Capital Gains Tax Calculator (2026)
Selling your house? Most homeowners owe nothing, thanks to the $250,000 ($500,000 married) home sale exclusion. But home prices have risen so much that more sellers now go over it. Enter your numbers to see your gain, how much is excluded, and the 2026 federal capital gains tax, the 3.8% investment tax and your state tax.
Kitchen, roof, addition, new HVAC. Not repairs or upkeep.
Agent commission, title, transfer taxes.
Mortgage payoff is not subtracted. Depreciation recapture on a home you rented out is not included.
2026 capital gains tax rates
Long-term gains (property owned more than a year) are taxed at these rates, based on your taxable income including the gain:
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,451 to $545,500 | $98,901 to $613,700 |
| 20% | Over $545,500 | Over $613,700 |
| +3.8% NIIT | Income over $200,000 | Income over $250,000 |
Examples
| Sale | Gain | Taxable after exclusion | Total tax |
|---|---|---|---|
| Single, Texas: bought $250k, sold $450k | $143,000 | $0 | $0 |
| Married, California: bought $350k, sold $900k | $446,000 | $0 | $0 |
| Single, Florida: bought $300k, sold $700k | $338,000 | $88,000 | $13,200 |
| Single, North Carolina rental: bought $380k, sold $500k | $90,000 | $90,000 | $17,091 |
| Married, New York: bought $600k, sold $1.5M | $725,000 | $225,000 | $56,865 |
The home sale exclusion
If you owned the home and lived in it as your main home for at least 2 of the 5 years before the sale, you can exclude up to $250,000 of gain, or $500,000 if married filing jointly. You can use it once every 2 years. A smaller, partial exclusion may apply if you moved early for a job, health or other unforeseen reasons.
How to lower the tax
- Count every improvement. Remodels, additions, a new roof and similar upgrades raise your basis and lower your gain. Keep the receipts.
- Include buying and selling costs. Closing costs when you bought and commissions when you sell both reduce the gain.
- Time the 2-year mark. Selling a few months later can turn a fully taxable gain into a tax-free one.
- Watch the year you sell. A low-income year can put more of the gain in the 0% bracket.
How this calculator works
Gain is the sale price minus selling costs, what you paid and improvements. The exclusion is taken first. The taxable gain is stacked on top of your other income (after the 2026 standard deduction) to find the 0%, 15% and 20% portions. The 3.8% net investment income tax applies to the taxable gain above $200,000 of income ($250,000 married). State tax treats the gain like regular income, which is true in most states, though a few give gains a break.
FAQ
Do I pay capital gains tax when I sell my house?
Usually not. If you lived there 2 of the last 5 years, up to $250,000 of gain ($500,000 married) is tax-free. You only pay tax on the gain above that.
What is the capital gains tax rate on a home sale in 2026?
0%, 15% or 20% for a home owned more than a year, depending on your income, plus 3.8% if your income is above $200,000 ($250,000 married). Short-term gains are taxed like wages.
How do I lower capital gains tax on a home sale?
Add your improvements and closing costs to your basis, subtract selling costs, and make sure you meet the 2-out-of-5-year rule before you sell.
Do I pay state tax on a home sale?
In most states yes, on any gain above the exclusion, at your normal state rate. States without an income tax, like Florida and Texas, do not tax it.
Is the home sale exclusion going to change?
Congress has discussed raising or removing the limit, but as of October 2026 the $250,000 and $500,000 limits are still the law.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.