When you sell a primary home, a large share of the gain can be tax-free. See your taxable gain after the $250k / $500k exclusion and a rough tax estimate.
When you sell a primary home, the IRS lets you exclude a large share of the gain from tax under Section 121. This calculator estimates your taxable gain after the 250,000 single or 500,000 joint exclusion, and gives a rough federal tax figure.
If you owned and lived in the home for at least two of the last five years, you can exclude up to 250,000 of gain if single, or 500,000 if married filing jointly. The gain is the sale price minus selling costs and minus your adjusted basis, which is the purchase price plus capital improvements. Only the gain above the exclusion is taxable.
The tax figure applies a 15% long-term capital gains rate, but your actual rate could be 0%, 15%, or 20% depending on income, plus any state tax and the 3.8% net investment income tax for high earners. Depreciation from renting the home can also be recaptured. Because the rules are detailed, treat this as a starting estimate and confirm with a tax professional.
Up to 250,000 if single or 500,000 if married filing jointly, provided you owned and lived in the home two of the last five years.
The purchase price plus capital improvements such as a new roof or addition. A higher basis means a smaller taxable gain.
Then none of it is taxable, and you generally do not even report the sale, though keeping records is wise.
See the exact formula and a worked example on our methodology page.