Capital Gains Tax Calculator

Estimates only — your contract, lender's disclosure and tax situation govern. List With Agent is not a real estate brokerage. We are an independent marketing and referral service that connects home sellers with licensed real estate agents. This page is general educational information, not legal, financial, or real estate advice.

How it works

Gain = amount realized (sale price − selling costs) − adjusted basis (purchase price + capital improvements). If you owned and lived in the home for at least 2 of the last 5 years, up to $250,000 of gain (single) or $500,000 (married filing jointly) is excluded under IRC Section 121. Taxable gain is taxed at 2026 long-term capital gains rates (0%, 15% or 20%), and the 3.8% net investment income tax may apply above the MAGI thresholds.

Frequently asked questions

How much capital gains tax will I owe on my home sale?

If your gain is within the Section 121 exclusion — up to $250,000 single or $500,000 married filing jointly — you generally owe no federal capital gains tax. Above that, the taxable gain is taxed at long-term rates of 0%, 15% or 20%.

What is the Section 121 exclusion?

A federal exclusion that lets you exclude up to $250,000 of gain ($500,000 for a joint return) when you sell your primary residence, provided you owned and lived in it for at least 2 of the 5 years before the sale.

How is my gain calculated?

Gain is the amount realized (sale price minus selling costs such as commission and closing costs) minus your adjusted basis (what you paid plus capital improvements).

Does the 3.8% net investment income tax apply?

It can. The NIIT applies at 3.8% on the lesser of net investment income or modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). Those thresholds are not indexed for inflation.

What are the 2026 long-term capital gains brackets?

For 2026, the 0% rate applies up to $49,450 of taxable income (single) or $98,900 (married filing jointly); 15% applies above that up to $545,500 (single) or $613,700 (joint); 20% applies above those amounts. These thresholds come from IRS Revenue Procedure 2025-32.