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Taxes

Do I pay taxes when I sell my house?

Answer stability

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The bottom line

Reviewed against multiple sources

Often there's an exclusion for a primary home if you qualify, but not always. Verify the ownership/use tests and current limits.

Why we believe this

AI models agree a primary-residence sale may qualify for a capital-gains exclusion if you meet ownership and use tests, but gains above the exclusion, rental conversions, and second homes are treated differently. Exclusion amounts and tests have specific requirements to verify.

Supporting evidence

IRS.gov home-sale guidance

Exclusion rules and tests.

A CPA

For gains above the exclusion or complex situations.

What could change this answer

  • Whether you meet the ownership and use tests.
  • Your gain versus the current exclusion amount.
  • Any rental or business use of the home.

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FAQs

How much home-sale gain is tax-free?

There's an exclusion for qualifying primary residences, but the amount and tests matter. Confirm current figures.

Does selling a rental trigger taxes?

Usually yes, including possible depreciation recapture. Verify with a tax professional.