The short answer
Usually not. If you owned and lived in the home as your main home for at least 2 of the last 5 years, you can exclude up to $250,000 of gain, or $500,000 if married filing jointly.
Last reviewed: October 2026
This page explains how taxes and reporting work. It isn't a recommendation to buy, sell or hold any investment.
How to figure your gain
Gain = sale price, minus selling costs (like commissions), minus your basis. Your basis is what you paid plus improvements, like a new roof or an addition, but not repairs. Keep those receipts.
The rules
- 2 of the last 5 years: you must have owned it and lived in it as your main home. The two years don't have to be in a row.
- Once every 2 years: you can use the exclusion once in any two-year period.
- Married couples: for $500,000, either spouse can meet the ownership test, but both must meet the living-in test.
When you might owe tax
- Your gain is bigger than the exclusion.
- You rented the home out or had a home office. Depreciation taken after May 6, 1997 is taxable when you sell. See depreciation recapture.
- You didn't live there two years. You may still get a partial exclusion if you moved for a job, health reasons or certain unforeseen events.
Got a Form 1099-S from the closing? You may need to report the sale even if no tax is due.
Official source: IRS Topic 701, Sale of your home.
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Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.