Calculate capital gains tax on your home sale. Includes Section 121 exclusion, cost basis adjustments, and net after-tax proceeds.
Additions, renovations, new roof, etc.
Commission + closing costs
Determines your CG tax rate
15% capital gains rate
| Sale Price | $600,000 |
| Less: Selling Costs | -$33,000 |
| Less: Adjusted Basis | -$380,000 |
| Total Capital Gain | $187,000 |
| Section 121 Exclusion (married) | -$500,000 |
| Taxable Capital Gain | $0 |
| Federal Capital Gains Tax (15%) | $0 |
| Net Investment Income Tax (3.8%) | $0 |
| Total Tax Owed | $0 |
| Net After-Tax Proceeds | $567,000 |
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Taxable Gain = Sale Price − Selling Costs − Adjusted Basis − Exclusion
Adjusted Basis = Purchase Price + Improvements
Exclusion: $250K (single) / $500K (married) for primary residence (2-of-5 year rule)
If you lived in the home 2 of the last 5 years, you can exclude $250K (single) or $500K (married) of gain. Remaining taxable gain is taxed at 0%, 15%, or 20% long-term capital gains rates depending on your income.
Under IRC Section 121, you can exclude up to $250,000 (single filer) or $500,000 (married filing jointly) of capital gains from the sale of your primary residence, provided you lived there for at least 2 of the last 5 years.
Capital improvements increase your basis: additions, new roof, kitchen/bath remodel, HVAC replacement, deck/patio, landscaping. Repairs and maintenance do not increase basis. Keep all receipts!
0% if taxable income < $47,025 (single) / $94,050 (married). 15% if income < $518,900 (single) / $583,750 (married). 20% above those thresholds. Plus 3.8% Net Investment Income Tax if income > $200K/$250K.
Yes, even if you have zero taxable gain after the exclusion. Report it on Schedule D using Form 1099-S. If the entire gain is excluded and you have no taxable gain, some situations allow you to skip reporting — but check with a tax professional.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.