Free tool

Capital Gains Estimator for a Home Sale

Most primary-residence sellers owe nothing thanks to the federal exclusion — but it helps to check the math before you sell, especially on rentals, inherited houses, or big gains. Runs on your device — nothing is submitted.

Estimated taxable gain —

Enter your numbers.

Expected sale price ($) Original purchase price ($) Capital improvements over the years ($) Selling costs — commission, transfer tax, title fees ($) Filing status / exclusion

The Section 121 exclusion generally requires owning and living in the house as your main home for at least 2 of the last 5 years. Depreciation recapture on a former rental is not modeled here.

How the exclusion works

Your taxable gain is roughly sale price minus your adjusted basis (what you paid, plus qualifying capital improvements) minus selling costs. If the house was your primary residence for at least 2 of the last 5 years, single filers can exclude up to $250,000 of gain and married couples filing jointly can exclude up to $500,000 — often reducing the tax owed to zero. Investment or rental properties, second homes, and inherited properties without the residency requirement don't get this exclusion, and rentals can also trigger depreciation recapture, which this tool does not calculate.

This is a rough educational estimate, not tax advice — talk to a CPA before you sell, especially for rentals, inherited property, or large gains.

Get a written cash offer instead

Source: IRS Publication 523, Selling Your Home (Section 121 exclusion), irs.gov.