United States · Capital gains tax on property
US Capital Gains Tax on Real Estate Calculator 2026
US federal capital gains tax on real estate held over a year is 0%, 15% or 20% in 2026 depending on taxable income, plus the 3.8% Net Investment Income Tax above $200,000 of income ($250,000 married). A main home excludes up to $250,000 of gain, or $500,000 for a married couple.
Estimate the federal capital gains tax when you sell US real estate: a main home, second home, rental or inherited property. The Section 121 exclusion, the long-term rate bands and the Net Investment Income Tax are built in. State tax is shown separately.
About 16.9% of your $200,000 gain. You keep roughly $166,200.
How we got this
| Sale price | $500,000 |
| Less cost basis | −$300,000 |
| Less costs and improvements | −$0 |
| Gain | $200,000 |
| Less Section 121 exclusion | −$0 |
| Taxable gain | $200,000 |
| Component | Amount | Rate | Tax |
|---|---|---|---|
| Long-term gain | $200,000 | 15% | $30,000 |
| Net Investment Income Tax | $100,000 | 3.8% | $3,800 |
| Estimated federal tax | $33,800 |
Reported on Schedule D and Form 8949 with your annual federal return. State capital gains tax, where it applies, is charged separately.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with the IRS or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
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How is capital gains tax on real estate calculated in the US?
Federal capital gains tax applies to the gain: the sale price minus your adjusted basis, which is the purchase price plus improvements and buying and selling costs. A property held more than a year is a long-term gain, taxed at 0, 15 or 20 per cent depending on where the gain sits on top of your ordinary taxable income. A property held a year or less is taxed as ordinary income.
How does the Section 121 exclusion work?
If the property was your main home for at least 2 of the last 5 years, you can exclude up to $250,000 of gain as a single filer, or $500,000 married filing jointly. The exclusion is applied before the rate bands, so a typical home sale often has little or no federal tax to pay.
What extra charges can apply?
Two charges commonly stack on top. The Net Investment Income Tax adds 3.8 per cent once your income passes $200,000 single or $250,000 married. For a rental, the depreciation you claimed is recaptured at up to 25 per cent. State capital gains tax, where a state charges it, is worked out separately.
What are the US capital gains figures for 2026?
- In 2026 the 0 per cent long-term capital gains rate applies up to $49,450 of taxable income for a single filer and $98,900 married filing jointly.Source: IRS Revenue Procedure 2025-32.
- The 15 per cent rate applies up to $545,500 single and $613,700 married filing jointly in 2026, and 20 per cent above.Source: IRS Revenue Procedure 2025-32.
- The Section 121 home-sale exclusion is $250,000 for a single filer and $500,000 for a married couple who owned and lived in the home for 2 of the last 5 years.Source: IRS Topic 701.
- The Net Investment Income Tax is 3.8% on the lesser of net investment income or modified adjusted gross income above $200,000 single or $250,000 married filing jointly.Source: IRS, Net Investment Income Tax.
- Depreciation claimed on a rental is recaptured at up to 25% when it is sold.Source: IRS Topic 409.
US real estate CGT: common questions
How much is capital gains tax on real estate in the US?
A property held more than a year is taxed at the long-term rate of 0, 15 or 20 per cent depending on your taxable income, plus a 3.8 per cent Net Investment Income Tax above $200,000 of income ($250,000 married). A main home can exclude up to $250,000 of gain, or $500,000 for a couple.
What is the Section 121 home-sale exclusion?
If you owned and used the property as your main home for at least 2 of the last 5 years, you can exclude up to $250,000 of gain as a single filer, or $500,000 married filing jointly.
Do I pay the Net Investment Income Tax?
The 3.8 per cent Net Investment Income Tax applies to the smaller of your net investment income or the amount by which your modified adjusted gross income exceeds $200,000 single or $250,000 married filing jointly.
Is inherited property taxed differently?
Inherited property normally takes a stepped-up basis equal to its value at the date of death, so only the growth after that point is taxed when you sell.
Does this include state capital gains tax?
No. This estimate covers federal tax only. Many states charge their own capital gains tax, worked out separately. State pages are being added.