Georgia Rep. Marjorie Taylor Greene has introduced the No Tax on Home Sales Act—a proposal to eliminate the federal capital gains tax on the sale of primary residences. The proposed bill was drafted to deliver tax relief to homeowners, and help to increase housing supply nationwide.
“Families who work hard, build equity, and sell their homes should not be punished with massive tax bills,” said Rep. Greene. “The capital gains tax on home sales is an outdated, unfair burden—especially in today’s housing market, where values have skyrocketed. My bill fixes that.”
The Internal Revenue Service (IRS) currently allows an exclusion of up to $250,000 ($500,000 for joint filers) in capital gains from home sales, but those limits have not been updated since 1997. As home prices have risen, more middle-class homeowners are being hit with capital gains taxes that were originally intended for wealthy investors.
According to Zillow, the average U.S. home value currently stands at $368,581, up 0.3% year-over-year.
The No Tax on Home Sales Act would:
- Eliminate the federal capital gains tax on home sales
- Encourage mobility by removing a key disincentive to selling, helping to increase housing supply
- Deliver tax relief to homeowners looking to downsize or relocate without being penalized for appreciation
- Protect first-time buyers by improving inventory and lowering prices in the most constrained housing markets
“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,” Rep. Greene added. “My bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families.”
The No Tax on Home Sales Act explicitly applies to individuals selling their primary residence and does not apply to home flippers or real estate investors.
Realtor.com reports that President Donald Trump is committed to removing taxes on capital gains on home sales.
“We’re thinking about that,” President Trump recently told reporters during a White House press conference.
The capital gains tax exemption lets sellers exclude $250,000 in profit ($500,000 for couples) on the sale of a primary residence. But these limits have never been tied to inflation. Since their introduction in 1997, home prices have climbed more than 260% nationally.
“Thank you, President Trump, for supporting my No Tax on Home Sales Act! My bill would ELIMINATE the federal capital gains tax on the sale of your primary residence,” Rep. Greene recently posted on the social media platform X. “You worked for it. You should keep it. Let’s get this bill passed!”
Click here for more on the No Tax on Home Sales Act.
