Capital Gains Tax on Home Sale Calculator
If you have lived in your home for at least two of the past five years, up to $250,000 (single) or $500,000 (married) of profit is tax-free. This calculator estimates what you owe above that exclusion.
How this calculator works
Your profit is the sale price minus your original purchase price. If you meet the 2-of-5-year ownership and use test, the first $250,000 (single) or $500,000 (married) of profit is excluded from tax. Any profit above the exclusion is taxed at the long-term capital gains rate — 0%, 15%, or 20% in 2026 depending on your taxable income. Selling costs such as agent commissions and capital improvements can reduce your profit further; this calculator gives a conservative estimate without them.
Frequently asked questions
What is the 2-of-5-year rule?
To claim the exclusion, you must have owned and used the home as your primary residence for at least two years (24 months, not necessarily consecutive) within the five years before the sale.
How often can I use the home sale exclusion?
Generally once every two years. The IRS also allows a partial exclusion if you sell early due to a job change, health reasons, or certain unforeseen circumstances.
Do capital improvements reduce my taxable gain?
Yes. The cost of improvements that add value or extend the life of the home — a new roof, a remodeled kitchen — increases your cost basis and lowers your taxable profit. Routine repairs do not count.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.