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U.S. President Donald Trump meets with Philippine President Ferdinand Marcos Jr. (not pictured), in the Oval Office at the White House in Washington, D.C., U.S., July 22, 2025. <\/p>\n
Kent Nishimura | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
President Donald Trump<\/a> on Tuesday said the administration is considering ending capital gains taxes<\/a> on home sales to boost the housing market<\/a>. <\/p>\n When asked about the idea in the Oval Office on Tuesday, Trump told reporters, “we’re thinking about that.”<\/p>\n “If the Fed would lower the [interest] rates, we wouldn’t even have to do that,” he said. “But we are thinking about no tax on capital gains on houses.”<\/p>\n Under current law, home sellers can face capital gains taxes<\/a> once profits exceed $250,000 for single filers or $500,000 for married couples filing jointly.<\/p>\n More from Personal Finance:<\/strong> Trump’s comments come roughly two weeks after Rep. Marjorie Taylor Greene, R-Ga., introduced the No Tax on Home Sales Act<\/a>, <\/em>to eliminate capital gains taxes on primary home sales.<\/p>\n “Homeowners who have lived in their homes for decades, especially seniors in places where values have surged, shouldn’t be forced to stay put because of an IRS penalty,” she said in a statement<\/a>. “My bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families.”<\/p>\n However, the proposal could be costly, and it’s unclear whether the measure has broad Congressional support, experts say.<\/p>\n “I think this could generate some interest, but they’re more likely to raise the exemption than they are to eliminate the tax entirely,” Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, told CNBC.<\/p>\n<\/div>\n Enacted in 1997, the $250,000 and $500,000 capital gains exclusions \u2014 which apply to primary home sales \u2014 have never been indexed for inflation.<\/p>\n Since 1997, the median home sales price has climbed by nearly 190%<\/a>, from about $145,000 to roughly $417,000, as of the first quarter of 2025, according to Federal Reserve data.<\/p>\n As home values rise, certain individuals, such as long-time homeowners, are more likely to exceed the $250,000 and $500,000 thresholds, which could trigger capital gains taxes, experts say.<\/p>\n<\/div>\n When home sales profits exceed $250,000 or $500,000, capital gains are levied at 0%, 15% or 20%, depending on taxable income. Excess profit above those thresholds can also trigger the so-called\u00a0net investment income tax<\/a>\u00a0of 3.8%, depending on\u00a0other investment earnings<\/a>, according to the IRS.<\/p>\n Some 29 million homeowners (34%) could exceed the $250,000 threshold for single filers, and 8 million (10%) could be above the $500,000 limit for married couples filing jointly, according to a 2025 study<\/a> from the National Association of Realtors, or NAR. The organization has long advocated for capital gains reform<\/a> for home sales.<\/p>\n Homeowners in states like Washington, California, Utah and Massachusetts are more likely to be impacted<\/a>, according to NAR data.<\/p>\n<\/div>\n However, many homeowners don’t realize it’s possible to reduce your home sales profit<\/a> by adding so-called “capital improvements,” such as home renovations to the original purchase price, experts say.<\/p>\n If capital gains taxes for home sales were eliminated, the measure would primarily benefit sellers who are older and wealthier, according to an analysis released Tuesday<\/a> from The Budget Lab at Yale University.<\/p>\n<\/div>\n<\/div>\n\n
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Affordable Care Act health plan enrollees could face ‘subsidy cliff’ in 2026<\/a>
Trump’s ‘big beautiful bill’ includes these 2025 tax changes<\/a><\/p>\nWho pays capital gains on home sales<\/h2>\n
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