Calculate capital gains tax on your home sale. Includes Section 121 exclusion, cost basis adjustments, and net after-tax proceeds.
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Additions, renovations, new roof, etc.
Commission + closing costs
Determines your CG tax rate
The Chen family is buying a $340,000 home in Columbus, Ohio. Combined income $115,000, 10% down payment, 30-year fixed at 7.125%.
Takeaway: Columbus/Franklin County averages are the reference baseline. Property tax rates and insurance premiums shift significantly by ZIP code and HOA status. Plug your actual numbers in above.
We default to state-average millage rates. County and municipal rates vary 40%+ within a single state. Ohio ranges from 0.8% (rural counties) to 2.4% (Cuyahoga/Cleveland area). Always cross-check your specific county assessor's published effective rate.
Property Tax by StateHomeowner association fees add $100-$800/month in condos and planned communities. Condos in urban markets often run $400-$700/month. If your property has HOA, add it manually to any payment estimate — it directly affects your debt-to-income ratio for loan qualification.
HOA Fee CalculatorClosing costs typically run 2-5% of the loan amount — around $6,000-$15,000 on a $300K home. Lender fees, title insurance, escrow, and prepaid taxes add up fast. These are due at closing in cash, not rolled into the mortgage by default.
Closing Costs CalculatorPrivate mortgage insurance (PMI) costs 0.5-1.5% of the loan annually until you reach 20% equity. On a $300K loan at 1%, that's $250/month. PMI cancels automatically at 78% LTV under federal law — but you can request removal at 80%.
National home price appreciation has averaged ~4% annually since 1968, but markets diverge dramatically. Sun Belt metros averaged 10%+ during 2020-2022; coastal markets often lag the national average during correction cycles. Local supply constraints are the main driver.
If you've lived in the home 2 of the last 5 years, you can exclude $250K (single) or $500K (married) of gain from federal capital gains tax. Many calculators show gross profit without applying this exclusion. Relevant when projecting sale proceeds.
Home Sale Capital Gains CalculatorBased on your inputs
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 Amount. Your adjusted basis = Original purchase price + Closing costs when you bought + Capital improvements − Depreciation taken (if rental).
To qualify: you may want to have owned and used the home as your primary residence for at least 24 months out of the 60 months before the sale. The 24 months don't need to be consecutive. You can only use this exclusion once every 2 years. Partial exclusions may apply for job relocation, health, or unforeseen circumstances.
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 ≤ ~$48,350 (single) / ~$96,700 (married). 15% if income ≤ ~$533,400 (single) / ~$600,050 (married). 20% above those thresholds. Plus 3.8% Net Investment Income Tax if AGI > $200K single / $250K married — these NIIT thresholds are NOT indexed to inflation and bite more high earners each year.
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.
Capital improvements that increase basis include new roof, kitchen remodel, bathroom renovation, room additions, HVAC replacement, new windows, deck construction, and finished basements. Routine repairs and maintenance like painting or fixing leaks do not increase basis.
You may want to have owned and used the home as your primary residence for at least 2 of the 5 years before the sale. The 2 years do not need to be consecutive. You can use this exclusion once every 2 years. Partial exclusions exist for qualifying circumstances.
The NIIT applies to the lesser of net investment income or the amount your MAGI exceeds $200,000 for singles or $250,000 for married couples. Taxable home sale gains above the exclusion are subject to this additional 3.8% tax on top of regular capital gains rates.
Inherited homes receive a stepped-up basis equal to the fair market value at the date of death. You only pay capital gains tax on appreciation after inheritance, not the original owner's gain. This can significantly reduce or eliminate capital gains tax on inherited property sales.
No, not for a primary residence. The old tax-deferred rollover rule was eliminated in 1997. You can use the Section 121 exclusion regardless of whether you buy another home. For investment properties, a 1031 exchange can defer capital gains by purchasing a replacement property.
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)
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.