All 50 States + DC

How Much Tax Will You Owe on Your Home Sale?

Most net proceeds calculators ignore taxes. We don't. See your true after-tax proceeds with federal and state capital gains calculations for all 50 states.

The $250K/$500K exemption may cover you — but only if you qualify. Let's check.

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Understanding Capital Gains Tax on Home Sales

Selling a home can trigger capital gains tax at both the federal and state level. Here is everything you need to know to estimate your liability and minimize what you owe.

The $250K/$500K Exemption Explained

Under IRC Section 121, you can exclude up to $250,000 of capital gains ($500,000 if married filing jointly) from the sale of your primary residence. To qualify, you must meet the 2-of-5 year ownership and use test — meaning you owned and lived in the home as your primary residence for at least 2 of the 5 years before the sale.

Who qualifies?

  • You owned the home for at least 2 of the last 5 years
  • You used it as your primary residence for at least 2 of the last 5 years
  • You haven't used the exclusion on another home sale in the last 2 years
  • The ownership and use periods don't need to be consecutive

Federal Capital Gains Tax Rates (2026)

Long-term capital gains (assets held over one year) are taxed at preferential rates based on your taxable income.

RateSingle FilersMarried Filing Jointly
0%Up to $48,350Up to $96,700
15%$48,351 - $533,400$96,701 - $600,050
20%Over $533,400Over $600,050

Net Investment Income Tax (3.8%)

The NIIT (also called the Medicare surtax) applies an additional 3.8% tax on the lesser of your net investment income or your modified adjusted gross income (MAGI) above the threshold. The thresholds are $200,000 for single filers and $250,000 for married filing jointly. This tax is often overlooked — but for high-income sellers, it adds significantly to the bill.

State Capital Gains Taxes

Most states tax capital gains as ordinary income. Rates range from 0% (in states like Texas, Florida, and Wyoming) to 13.3% in California. Some states offer special deductions or lower rates for long-term gains. Washington state charges 7% on capital gains exceeding $250,000, despite having no traditional income tax.

0% capital gains states: TX, FL, NV, WY, AK, SD, TN, NH

* Washington state (WA) charges 7% on capital gains over $250K since 2022.

Investment Property: Depreciation Recapture

If you claimed depreciation on a rental or investment property, you'll face "depreciation recapture" taxed at a flat 25% rate — on top of your regular capital gains tax. This 25% rate applies to the total amount of depreciation you claimed (or were allowed to claim), regardless of your income bracket. For a typical rental held for 10+ years, this can add $20,000-$50,000 to your tax bill.

1031 Exchange: How to Defer Taxes

A 1031 "like-kind" exchange lets you defer capital gains taxes on investment properties by reinvesting the proceeds into a similar property. Key rules: you have 45 days to identify replacement properties and 180 days to close. The exchange must be for investment or business property (not your primary residence). When done correctly, you can defer taxes indefinitely — though they come due when you eventually sell without exchanging.

Capital Gains Tax Rates — All 50 States + DC

Click any state for a detailed capital gains guide. Updated for 2026.

0% capital gains states: TX, FL, NV, WA*, WY, NH, TN, AK, SD

* WA has 7% on capital gains over $250K since 2022

StateRateNotesDetails
Alabama(AL)5%Taxed as ordinary incomeDetails
Alaska(AK)0%No state income taxDetails
Arizona(AZ)2.5%Flat tax rateDetails
Arkansas(AR)4.4%Top marginal rateDetails
California(CA)13.3%Highest in nation; taxed as ordinary incomeDetails
Colorado(CO)4.4%Flat tax rateDetails
Connecticut(CT)6.99%Top marginal rateDetails
Delaware(DE)6.6%Top marginal rateDetails
Florida(FL)0%No state income taxDetails
Georgia(GA)5.39%Flat tax rate (2026)Details
Hawaii(HI)7.25%Special capital gains rateDetails
Idaho(ID)5.695%Flat tax rateDetails
Illinois(IL)4.95%Flat tax rateDetails
Indiana(IN)3.05%Flat tax rateDetails
Iowa(IA)3.8%Flat tax (2026)Details
Kansas(KS)5.7%Top marginal rateDetails
Kentucky(KY)4%Flat tax rateDetails
Louisiana(LA)4.25%Top marginal rate (2026)Details
Maine(ME)7.15%Top marginal rateDetails
Maryland(MD)5.75%Top rate; local surcharge possibleDetails
Massachusetts(MA)9%5% + 4% surtax on income > $1MDetails
Michigan(MI)4.25%Flat tax rateDetails
Minnesota(MN)9.85%Top marginal rateDetails
Mississippi(MS)4.7%Flat tax (2026)Details
Missouri(MO)4.8%Top marginal rateDetails
Montana(MT)5.9%Top marginal rate; 2% credit availableDetails
Nebraska(NE)5.84%Top marginal rateDetails
Nevada(NV)0%No state income taxDetails
New Hampshire(NH)0%No tax on capital gains (I&D tax repealed 2025)Details
New Jersey(NJ)10.75%Top marginal rateDetails
New Mexico(NM)5.9%Top marginal rate; 40% deduction availableDetails
New York(NY)10.9%Top marginal rate; NYC adds up to 3.876%Details
North Carolina(NC)4.5%Flat tax rate (2026)Details
North Dakota(ND)1.95%Top marginal rateDetails
Ohio(OH)3.5%Flat tax rate (2026)Details
Oklahoma(OK)4.75%Top marginal rateDetails
Oregon(OR)9.9%Top marginal rateDetails
Pennsylvania(PA)3.07%Flat tax rateDetails
Rhode Island(RI)5.99%Top marginal rateDetails
South Carolina(SC)6.2%Top rate; 44% deduction availableDetails
South Dakota(SD)0%No state income taxDetails
Tennessee(TN)0%No state income taxDetails
Texas(TX)0%No state income taxDetails
Utah(UT)4.65%Flat tax rateDetails
Vermont(VT)8.75%Top marginal rateDetails
Virginia(VA)5.75%Top marginal rateDetails
Washington(WA)7%7% on gains > $250K (since 2022)Details
West Virginia(WV)5.12%Top marginal rateDetails
Wisconsin(WI)7.65%Top rate; 30% deduction for long-term gainsDetails
Wyoming(WY)0%No state income taxDetails
District of Columbia(DC)10.75%Top marginal rateDetails

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