Can a married couple exclude $500,000 on a home sale in 2025?

Yes. Married couples filing jointly can exclude up to $500,000 of gain if both spouses used the home as a main home for 2 of the last 5 years, at least one spouse owned it for that period, and neither spouse excluded gain from another home sale in the prior 2 years. (Source: IRS Publication 523.)

What if only one spouse meets the use test?

If you don't qualify for the full $500,000, you may still each claim up to $250,000 based on which spouse individually meets the ownership and use tests. Publication 523 explains how to figure the combined exclusion when only one spouse qualifies. (Source: IRS Publication 523.)

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 $500,000 Home Sale Exclusion (Married) 2025?

Free 2025 $500,000 home sale exclusion calculator for married couples. Married filing jointly can exclude up to $500,000 of main-home gain if both spouses used it as a main home for 2 of the last 5 years and at least one owned it that long. See exactly what's excluded vs taxable. 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.

$500,000 Home Sale Exclusion (Married) 2025

Name: $500,000 Home Sale Exclusion (Married) 2025
Creator: Gera Tools
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$500,000 Home Sale Exclusion (2025)

A married couple filing jointly can exclude up to $500,000 of home-sale gain for 2025 — if both spouses used the home as a main home for 2 of the last 5 years and at least one owned it that long, and neither 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.