United States · federal tax
Home sale capital gain exclusion calculator.
Work out your gain, how much of it the Section 121 exclusion covers ($250,000 single, $500,000 joint) and the federal tax on any excess at 0%, 15% or 20%.
Your sale
Estimate
Worked example
A single seller sells for $650,000 with $39,000 of selling costs. They bought for $300,000 and added $50,000 of improvements. Gain = ($650,000 − $39,000) − ($300,000 + $50,000) = $261,000. The $250,000 exclusion removes most of it, leaving $11,000 taxable. With $80,000 of other taxable income, that $11,000 sits above the $49,450 zero-rate threshold, so it is taxed at 15%: $1,650.
How the estimate works
Gain = (sale price − selling costs) − (purchase price + capital improvements). Exclusion = the smaller of the gain and $250,000 ($500,000 for a qualifying joint return), applied only if you meet the 24-month ownership and use tests within the 5 years before the sale and did not exclude another home's gain in the prior 2 years. Tax: the taxable gain is stacked on top of your other taxable income and taxed at 0%, 15% or 20% by band.
2026 band limits used (taxable income, 0% up to / 15% up to): single $49,450 / $545,500; married filing jointly $98,900 / $613,700; head of household $66,200 / $579,600; married filing separately $49,450 / $306,850. Above the second figure the rate is 20%.
Sources, as of October 1, 2026: IRS Topic 701, Sale of your home; IRS Publication 523, Selling Your Home; IRS Topic 409, Capital gains and losses; Rev. Proc. 2025-32 for the 2026 thresholds. The reduced (partial) exclusion for moves caused by work, health or unforeseen circumstances is not calculated here; see Pub 523.
Frequently asked questions
Who qualifies for the exclusion?
You must have owned the home and used it as your main home for at least 24 months of the 5 years ending on the sale date. The two tests can be met in different 2-year windows. You generally cannot use it if you excluded gain on another home in the 2 years before the sale (IRS Topic 701).
Why is the joint limit sometimes only $250,000?
Pub 523 allows $500,000 on a joint return only when the ownership and use tests are met as the rules require for spouses and neither spouse is barred by a prior exclusion. This page drops to $250,000 if you say both spouses did not meet the use test.
What if I lived there less than 2 years?
A reduced exclusion may apply if you moved for work, health or certain unforeseen circumstances. This page does not calculate it. It simply shows no exclusion and points you to Pub 523.
What is not included in the tax estimate?
State tax, the 3.8% net investment income tax, the 25% rate on depreciation recapture (for example a home office or rental period), and nonqualified-use rules. See Topic 409, Topic 559 and Pub 523.
Estimate only
Federal arithmetic on figures you enter. It leaves out state tax, the net investment income tax, depreciation recapture and nonqualified use. It is not tax or legal advice. Confirm with a tax professional or Pub 523 before filing.