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Home Sale Capital Gains Calculator

Free capital gains on home sale calculator. Estimate your Section 121 exclusion, taxable gain, depreciation recapture, and federal capital-gains tax using 2025 brackets.

Original purchase price ($)

Capital improvements ($)

Sale price ($)

Selling costs ($)

Filing status

Other taxable income ($)

MAGI for NIIT ($)

Depreciation taken ($) if ever rented

Lived in home ≥2 of last 5 years (§121 test)

How the capital-gains estimate is calculated

We work through the IRS home-sale worksheet step by step:

cost basis      = purchase price + capital improvements
amount realized = sale price − selling costs
capital gain    = amount realized − cost basis

The Section 121 exclusion is the big one. If you owned and used the home as your main home for at least 2 of the last 5 years, you can exclude up to $250,000 of gain if single, or $500,000 if married filing jointly. Your taxable gain is:

taxable gain = max(0, capital gain − exclusion)

Depreciation recapture: if the home was ever a rental, the depreciation you claimed is "unrecaptured §1250 gain." It cannot be excluded under §121 and is taxed at up to 25%, so we surface it separately.

The remaining taxable gain is taxed at long-term capital-gains rates — 0%, 15%, or 20% depending on your total taxable income (2025 brackets), stacked on top of your other income. If your modified AGI is over $200,000 (single) or $250,000 (married filing jointly), an additional 3.8% Net Investment Income Tax applies.

Estimates only — not financial/tax advice. Consult a professional. This is a federal estimate only; state and local taxes are NOT included, and individual circumstances (partial-use, prorated exclusions, 1031 exchanges) can change the result. Figures are 2025 tax-year.

Frequently asked questions

How much home-sale gain is tax-free?

Under Section 121 you can exclude up to $250,000 of gain (single) or $500,000 (married filing jointly) if you meet the 2-of-5-year ownership and use test. Only gain above the exclusion is taxed.

Do I pay tax on the whole sale price?

No — only on the gain. That's your sale price minus selling costs minus your cost basis (purchase price plus improvements), and then minus the §121 exclusion.

What is depreciation recapture on a former rental?

If you rented the home and claimed depreciation, that amount is added back as unrecaptured §1250 gain. It is not covered by the §121 exclusion and is taxed at up to 25%.

What is the 3.8% Net Investment Income Tax?

The NIIT is an extra 3.8% on net investment income (including taxable home-sale gain) for taxpayers whose modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly).

Does this include state tax?

No. This estimator only covers federal tax. Many states tax capital gains as ordinary income, so your total bill may be higher. Talk to a tax pro.