Home Sale Capital Gains Tax Calculator
Calculate capital gains tax on selling a home, including the IRS Section 121 primary residence exclusion ($250,000 Single / $500,000 Married) and adjusted cost basis.
Section 121 Tax Results
Section 121 Home Sale Gain Formula
Adjusted Basis = Purchase Price + Improvements | Net Proceeds = Sale Price − Selling Costs | Realized Gain = Net Proceeds − Adjusted Basis | Taxable Gain = max(0, Realized Gain − Section 121 Exclusion)- Section 121 Exclusion: Up to $250,000 (Single) or $500,000 (Married Filing Jointly) of capital gain is 100% tax-free if you lived in and owned the home as your primary residence for at least 2 of the previous 5 years.
- Capital Improvements: Remodeling kitchens, replacing roofs, or adding rooms increases your cost basis and reduces taxable profit dollar-for-dollar.
- Selling Expenses: Real estate agent commissions, staging, legal fees, and title insurance reduce gross sale proceeds.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes taxpayer meets ownership and use tests and has not utilized the Section 121 exclusion within the prior 2 years.
Frequently Asked Questions
What qualifies as a capital improvement vs routine repair?
Capital improvements prolong property life or add value (e.g. new roof, HVAC replacement, bathroom remodel). Routine repairs (e.g. painting, fixing a leaky faucet) do not increase basis on a primary residence.
Related Cost Calculators
Federal Income Tax Calculator
Calculate progressive federal income tax liability with full 2024 IRS tax bracket breakdowns, 401(k)/HSA pretax deductions, and tax credits.
Capital Gains Tax Calculator
Calculate short-term versus long-term capital gains tax on stocks, crypto, and real estate, including 2024 IRS brackets and the 3.8% Net Investment Income Tax (NIIT).
Real Estate Transfer Tax Calculator
Calculate state, county, and municipal deed transfer taxes, documentary stamps, and closing fee splits between buyers and sellers.
Rental Income Tax Calculator
Calculate taxable net rental income, 27.5-year residential depreciation tax shields, deductible operating expenses, and after-tax cash flows.