What is the 2-out-of-5-year rule for the home sale exclusion?

To exclude the gain on your main home, you must have owned the home for at least 24 months and lived in it as your main home for at least 24 months during the 5-year period ending on the date of sale. The 24 months of use don't have to be continuous. (Source: IRS Topic No. 701; Publication 523.)

How often can I use the home sale exclusion?

Generally once every 2 years. You can't take the §121 exclusion if you excluded gain from the sale of another main home during the 2-year period before the current sale. (Source: IRS Topic No. 701.)

Does this calculate state capital gains tax?

No. This estimate is federal only. Most states tax capital gains as ordinary income and rates vary widely; a few (such as Florida, Texas, and Washington for ordinary gains) have no state income tax. Check your state's rules separately. (Source: IRS Topic No. 409, federal scope.)

Is my data sent anywhere when I use this calculator?

No. All calculations run entirely in your browser using JavaScript. No sale price, basis, income, or other inputs are ever transmitted to any server.

What is the 2-of-5-Year Rule for the Home Sale Exclusion 2025?

Free 2025 guide and calculator for the home-sale "2 of 5 year" rule. To take the §121 exclusion ($250,000 single / $500,000 married) you must have owned the home and used it as your main home for at least 24 months out of the 5 years ending on the sale date, and not have used the exclusion in the prior 2 years. Source: IRS Topic No. 701 & Publication 523 (§121 exclusion); IRS Topic No. 409 & Rev. Proc. 2024-40 (2025 long-term capital-gains thresholds); IRC §1411 (NIIT). Runs entirely in your browser; no data sent to any server. Not tax or legal advice. It runs free in your browser on Gera Tools, with nothing uploaded.

2-of-5-Year Rule for the Home Sale Exclusion 2025

Name: 2-of-5-Year Rule for the Home Sale Exclusion 2025
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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2-of-5-Year Rule for the Home Sale Exclusion (2025)

The 2-of-5-year rule: to take the §121 home-sale exclusion you must have owned the home and used it as your main home for at least 24 months out of the 5 years ending on the sale date (the 24 months of use need not be continuous), and not have used the exclusion in the prior 2 years.

Enter your sale below to see the gain, how much the §121 exclusion covers, the taxable gain, and an estimate of the federal capital-gains tax and 3.8% NIIT. Everything runs in your browser — no data is transmitted.

Important: This is a federal estimate only. It does not compute state capital-gains tax, and it does not model depreciation recapture (unrecaptured §1250 gain, taxed up to 25%) if the home was ever a rental. Source: IRS Topic No. 701 & Publication 523 (§121 exclusion); IRS Topic No. 409 & Rev. Proc. 2024-40 (2025 long-term capital-gains thresholds); IRC §1411 (NIIT); figures for the 2025 tax year, data as of 2024-10-22. Rates and rules change; this is not tax or legal advice.