Capital Gains on Home Sale Calculator

2026 rules

Find the taxable gain on selling your home after the exclusion.

Your numbers

Sale price

Selling costs (commission, closing)

Purchase price

Capital improvements

Filing status

Owned and lived in it 2 of the last 5 years

Depreciation claimed (home office or rental use)

Other taxable income

State

Result

Tax on the home sale$0

Amount realized (price − selling costs)$710,000
Adjusted basis-$350,000
Gain$360,000
Exclusion ($500,000 for your status)-$360,000
Taxable long-term gain$0
Federal capital gains tax$0
NIIT$0
Total tax$0

How it works

Your gain is the sale price minus selling costs, minus what you paid plus capital improvements. If you owned and lived in the home for two of the last five years, you can exclude $250,000 of gain, or $500,000 for a married couple filing jointly.

Depreciation you took for a home office or rental use isn't covered by the exclusion and is taxed at up to 25%.

2026 figures: IRS Rev. Proc. 2025-32 (2026 inflation adjustments).

Questions

What counts as a capital improvement?

Work that adds value or extends the home's life, such as a new roof, an addition or a kitchen remodel. Repairs and maintenance don't count.

Can I use the exclusion again?

Yes, once every two years. A partial exclusion is available if you move early for a job, health or unforeseen circumstances.