US home sale capital gains tax calculator 2026

How much federal tax you owe on the profit from selling a home: the gain, the $250,000 or $500,000 exclusion, the capital gains rates and the 3.8% net investment income tax.

Federal tax on the sale

$5,400.00

on a gain of $286,000 · $250,000 excluded

Gain $286,000
Excluded $250,000
Taxable $36,000
15% rate

You sell for $650,000 and pay $39,000 of selling costs, so you realize $611,000. Your cost is $325,000 (purchase price plus improvements), so the gain is $286,000. As a single filer who owned and lived in the home, you can exclude up to $250,000, and $250,000 of the gain is excluded. The taxable gain of $36,000 is taxed at the long-term capital gains rate of 15%, which is $5,400.00.

The exclusion is not a deduction: you report the sale if you receive a Form 1099-S or if you cannot exclude all of the gain. Your income is under the threshold for the 3.8% net investment income tax.

If you rented out part of the home or used it for business, depreciation you claimed after May 6, 1997 is taxed up to 25% and does not qualify for the exclusion. The calculator does not include it.
Your gain is the sale price minus selling costs, minus what you paid and the improvements. Keep receipts for improvements: they lower the gain.
State taxes, a partial exclusion for a move for work or health, and a home bought as part of a like-kind exchange are not included. Not tax advice.

I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.

Your numbers

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Sale price

The price the buyer pays for the home, as written in the contract.

Selling costs

What you pay to sell: agent commissions, title and escrow fees, transfer taxes, legal fees and costs of preparing the home for sale. They come off the price.

Purchase price

What you paid for the home. If you inherited it, use its value when the owner died; if it was a gift, ask a tax professional.

Improvements and buying costs

Additions that raise the value or extend the life of the home, such as a new roof, a remodeled kitchen or an addition, plus closing costs when you bought. Routine repairs do not count.

Filing status

Your filing status for the year of the sale. Married couples filing jointly can exclude up to $500,000.

Single$250,000 exclusionMarried filing jointly$500,000 exclusionHead of household$250,000 exclusionMarried filing separately$250,000 exclusion

Did you own it and live in it for 2 of the last 5 years?

To exclude the gain, the home must be your main home: you must have owned it for at least 24 months and lived in it for at least 24 months in the 5 years before the sale. If you file jointly, one of you must meet the ownership test and both must meet the use test. Say no if you used the exclusion on another home in the last two years.

YesNo

Did you own it for more than one year?

A gain on a home held more than a year is long-term and taxed at 0%, 15% or 20%. Held a year or less, it is short-term and taxed at your normal rates.

YesNo

Your other income this year

Your income from everything else in the year of the sale (wages, business profit, interest), before deductions. The standard deduction is taken off to place the gain in the right bracket.

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The calculation
	Sale price	$650,000.00
−	Selling costs	$39,000.00
=	Amount realized	$611,000.00
−	Purchase price and improvements	$325,000.00
=	Gain on the sale	$286,000.00
−	Home sale exclusionup to $250,000	$250,000.00
=	Taxable gain	$36,000.00
	15% capital gains rateon $36,000	$5,400.00
=	Capital gains tax	$5,400.00
=	Federal tax on the sale	$5,400.00

How it works

Work out your gain: the sale price minus selling costs, minus what you paid for the home and the improvements you made. That is the profit.
If you owned the home and lived in it as your main home for at least 2 of the last 5 years, exclude up to $250,000 of the gain, or $500,000 on a joint return. Only the gain above that is taxable.
A gain on a home you held more than a year is taxed at 0%, 15% or 20% depending on your taxable income, placed on top of your other income. A 3.8% net investment income tax adds on if your income is over $200,000 ($250,000 jointly).

Worked example

Sale at $650,000 with $39,000 of selling costs; bought for $300,000 plus $25,000 of improvements. Gain: $611,000 − $325,000 = $286,000. Single, home lived in 2 of 5 years: $250,000 excluded, $36,000 taxable. With $100,000 of other income, that is taxed at 15%: $5,400.

Sources

Text checked on October 12, 2026

Good to know

To use the exclusion you must pass the ownership test and the use test: at least 24 months of each in the 5 years ending on the date of the sale. The months need not be consecutive. You cannot use it if you excluded the gain on another home sold in the two years before.
On a joint return, either spouse can meet the ownership test but both must meet the use test. That is how a couple can exclude up to $500,000.
A gain that is excluded is not net investment income. Only the taxable part counts for the 3.8% tax, and only for the part of your income above $200,000 ($250,000 jointly, $125,000 married filing separately).
For 2026, the long-term rate is 0% up to $49,450 of taxable income for singles ($98,900 jointly, $66,200 head of household), 15% up to $545,500 ($613,700 jointly, $579,600 head of household) and 20% above that.
If you receive a Form 1099-S (Proceeds From Real Estate Transactions) you must report the sale even if the whole gain is excluded. You also report it if you cannot exclude all of the gain.
There are special rules for the military and foreign service, partial exclusions when you move early for work, health or unforeseen events, and for inherited homes. Check IRS Publication 523.

Frequently asked questions

How much of the profit on my home can I exclude from tax?

Up to $250,000 if you file as single, head of household or married filing separately, and up to $500,000 if you are married filing jointly, provided you owned and lived in the home for at least 2 of the last 5 years.

What counts as the cost of my home?

What you paid for it, closing costs when you bought it and the improvements you made, such as an addition or a new roof. Routine repairs and maintenance do not count. The selling costs reduce the amount realized.

Do I owe tax if I sell my house at a loss?

No tax is due, but a loss on the sale of your personal home is not deductible. It cannot reduce your other income.

What is the capital gains tax rate for a home?

A taxable gain on a home held more than a year is taxed at 0%, 15% or 20% depending on your income. A gain on a home held a year or less is taxed at your ordinary income tax rates. The 3.8% net investment income tax may also apply.

Can I use the exclusion more than once?

Yes, but you generally cannot use it if you excluded the gain on another home sold in the two years before the sale.