Real Estate Capital Gains Tax Calculator
Filing status
Used as primary residence (2 of last 5 years)?
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How to use
- 1 Enter the sale price and selling costs (real estate commission ~5-6%, title, transfer tax — these reduce amount realized).
- 2 Enter the original purchase price plus all capital improvements you made (kitchen remodel, new roof, addition — repairs do NOT count).
- 3 Choose filing status (Single $250K exclusion, MFJ $500K) and confirm primary residence (lived 2 of last 5 years to qualify).
- 4 Enter your other ordinary income for 2026 — this stacks under the LTCG brackets. Enter your state capital gains rate (CA 13.3%, NY 10.9%, FL/TX/WA/NV 0%).
- 5 Click Calculate to see amount realized, basis, raw gain, exclusion applied, taxable gain, federal LTCG, NIIT, state tax, total tax, and final net proceeds.
About Real Estate Capital Gains Tax Calculator
FAQ
Q How much capital gains tax will I pay when I sell my house?
It depends on your gain and tax bracket. If it's your primary residence and you lived there 2 of the last 5 years, the first $250,000 (single) or $500,000 (MFJ) is excluded under IRC Section 121. Above that, federal LTCG is 0/15/20% plus 3.8% NIIT and your state rate.
Q What is the IRS Section 121 exclusion?
Section 121 lets you exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gain from the sale of your primary residence — provided you owned AND used it as your main home for at least 2 of the last 5 years. Available once every 2 years.
Q How is cost basis calculated for a home sale?
Cost basis = original purchase price + closing costs you paid as buyer + cost of capital improvements (kitchen remodel, new roof, addition). Routine repairs and maintenance do NOT count. Subtract any depreciation taken if you ever rented the property.
Q Do I owe NIIT on my home sale?
Only if (a) your gain exceeds the Section 121 exclusion AND (b) your MAGI exceeds $200,000 (single) or $250,000 (MFJ). NIIT is 3.8% on the lesser of net investment income or the MAGI excess. The thresholds have been frozen since 2013.
Q Can I avoid capital gains by reinvesting in another home?
No — that "rollover" rule was repealed in 1997. Today, only investment/rental properties qualify for tax deferral via a 1031 like-kind exchange. Personal residence sales rely solely on the Section 121 exclusion.
Q What if I lived in the home less than 2 years?
You may qualify for a partial exclusion if the move was caused by a qualifying unforeseen circumstance: job relocation (50+ miles), health condition, divorce, military deployment, multiple births, natural disaster. The exclusion is prorated by months of use.
Q Do I have to report a home sale if it's under the exclusion?
Not federally if the gain is fully excluded AND you didn't receive Form 1099-S. If you got a 1099-S, you must report the sale on Form 8949/Schedule D even if the entire gain is excluded. Keep records of basis and improvements for at least 3 years.
Q Which states don't tax capital gains on home sales?
9 states impose zero state-level capital gains tax: Florida, Texas, Washington, Nevada, South Dakota, Wyoming, Alaska, Tennessee, New Hampshire. The highest are California (13.3%), New York (10.9%), New Jersey (10.75%), Hawaii (11%), and Oregon (9.9%).
Official resources
IRS Publication 523 — Selling Your Home
Internal Revenue Service official guide to home sale tax rules, Section 121 exclusion, basis calculation, and Form 8949 reporting.
IRS Topic No. 409 — Capital Gains and Losses
IRS official explanation of long-term vs. short-term holding periods and federal capital gains tax brackets.
IRS Rev. Proc. 2025-32 — 2026 Inflation Adjustments
Official IRS Revenue Procedure setting 2026 LTCG brackets, standard deduction, and inflation-adjusted thresholds.
IRS Form 8949 — Sales and Other Dispositions
IRS official form for reporting home sales subject to capital gains, used with Schedule D on Form 1040.