Home Sale Capital Gains Calculator
Free home sale capital gains calculator. Estimate the taxable gain on your home after the $250k/$500k primary-residence exclusion, your cost basis and improvements, and see an estimate of the capital gains tax you might owe.
Cost basis $395,000.00 → gain of $165,000.00. The exclusion fully covers it — likely no capital gains tax owed.
Estimate only — not tax advice. State taxes, depreciation recapture on rentals, and income thresholds can change the result. Confirm with a tax professional.
Will you owe capital gains tax when you sell?
Capital gains tax applies to your profit, not your sale price. Your profit is the amount you realize (sale price minus selling costs) minus your cost basis — what you originally paid plus the cost of any capital improvements. Many homeowners owe nothing thanks to a generous exclusion.
What is the home sale exclusion?
If the home was your primary residence for at least two of the last five years, you can exclude up to $250,000 of gain if single, or $500,000 if married filing jointly. Only the gain above that exclusion is taxable.
What counts as a capital improvement?
Improvements that add value or prolong the home’s life — a new roof, an addition, a remodeled kitchen — raise your cost basis and shrink your taxable gain. Routine repairs and maintenance generally don’t count. Keep receipts.
Is this tax advice?
No — it’s an estimate to help you plan. Long-term capital gains rates (0%, 15%, or 20%) depend on your income, and rentals face depreciation recapture and no primary-residence exclusion. Always confirm with a tax professional.
Frequently asked questions
Do I pay capital gains tax when I sell my home?⌄
Often not. If it was your primary residence for two of the last five years, you can exclude up to $250,000 of gain ($500,000 if married filing jointly). Only gain above the exclusion is taxable.
How is the gain calculated?⌄
Gain equals your amount realized (sale price minus selling costs) minus your cost basis (original purchase price plus capital improvements). It's your profit, not the sale price.
What is a capital improvement?⌄
A project that adds value or extends the home's life — a new roof, addition, or kitchen remodel — which raises your cost basis and lowers taxable gain. Routine repairs don't count. Keep receipts.
What about a rental or second home?⌄
Those don't qualify for the primary-residence exclusion, and rentals also face depreciation recapture. The taxable gain is usually much larger, so consult a tax professional.
Is this tax advice?⌄
No — it's a planning estimate. Long-term capital gains rates (0%, 15%, or 20%) depend on your income, and state taxes vary. Confirm your numbers with a tax professional.
Have another question? Get in touch.