Capital Gains on Home Sale Calculator

Estimate your federal and state capital gains tax when selling your home. Includes the primary residence exclusion ($250K single / $500K married).

Home Sale Details

Renovations that add permanent value

Commission + closing costs at sale

Primary Residence Exclusion

Eligible

Up to $500,000 excluded

Sale price
− Selling costs
− Adjusted basis
= Realized gain
− Exclusion
= Taxable gain

Estimated Total Tax

$0

Federal cap gains
State tax
NIIT (3.8%) if applicable
Net proceeds after tax
Calculate full seller net proceeds →

Capital Gains on Home Sale FAQ

Is the profit from my home sale taxable?

Possibly, but most homeowners pay zero federal tax. If you've owned and lived in your home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). Only gains exceeding that exclusion are taxable.

What is "adjusted basis" for a home?

Your adjusted basis is your starting cost for tax purposes: original purchase price + purchase closing costs + capital improvements. Improvements that add permanent value (addition, new roof, kitchen remodel) increase your basis. Repairs (painting, fixing a leak) do not. The higher your basis, the lower your taxable gain.

What is the NIIT (Net Investment Income Tax)?

The NIIT is an additional 3.8% federal tax on net investment income for high earners — single filers above $200,000 and married couples above $250,000 in modified AGI. Taxable capital gains from home sales can be subject to NIIT if your income exceeds these thresholds.

Can I deduct home improvements?

Yes — capital improvements increase your adjusted basis and reduce your taxable gain dollar-for-dollar. Keep all receipts for renovation projects. You cannot deduct regular maintenance and repairs, only improvements that add value, extend useful life, or adapt the home to a new use.

What if I sold at a loss?

If you sell your primary residence at a loss, you owe no capital gains tax. Unfortunately, you also cannot deduct the loss from ordinary income (unlike investment property losses). You simply won't owe any tax on the transaction.

This calculator provides estimates for educational purposes using 2026 estimated IRS brackets. Tax law is complex — consult a CPA or tax attorney for advice on your specific situation.