New Bill Proposes Elimination of Capital Gains Tax on Home Sales
A Bold Step Toward Real Estate Wealth Preservation and Market Flexibility
On July 10, 2025, Congresswoman Marjorie Taylor Greene (R-GA) introduced the “No Tax on Home Sales Act”, a new piece of legislation that could reshape real estate wealth and bring long-overdue tax relief to American homeowners. This bill aims to eliminate the federal capital gains tax on the sale of a primary residence for qualifying homeowners — potentially unlocking billions in trapped equity and creating meaningful economic momentum in the housing market.
What the “No Tax on Home Sales Act” Proposes
Currently, the IRS allows homeowners to exclude a portion of the profit from the sale of their primary residence:
• Up to $250,000 for single filers
• Up to $500,000 for married couples filing jointly
Any profit beyond those limits is subject to capital gains tax, even if the homeowner lived in the property for many years and the appreciation was due to natural market growth.
Congresswoman Greene’s bill proposes eliminating those caps altogether. If a homeowner has lived in their property for at least two of the past five years, 100 percent of their gains would be tax-free — no matter the amount.
Why This Matters for Homeowners
This legislation is not aimed at real estate investors or home flippers. It’s designed specifically to benefit average American families and seniors who feel stuck in homes that no longer meet their needs due to fear of a large tax burden at sale.
According to Greene, the current structure creates disincentives for people to sell, especially in high-appreciation states like:
• Hawaii (79.1%)
• Washington (64.8%)
• California (62.2%)
By removing the tax penalty, this bill could:
• Encourage market activity by helping people downsize or relocate
• Improve inventory levels for first-time buyers and growing families
• Increase liquidity for seniors who need to access their home equity
• Support smart wealth-building strategies in real estate
How It Would Work
To qualify for the tax exemption under this proposed bill, homeowners must still meet the existing IRS residency requirement:
• Lived in the home for at least two out of the past five years before the sale
The bill has been referred to the House Committee on Ways and Means, where it will be debated and refined before potentially moving forward.
Implications for the Housing Market
If passed, this legislation could provide a major catalyst for housing activity. Many homeowners, particularly those who purchased their homes before 2015, have seen significant appreciation. However, capital gains tax liabilities have caused them to delay or avoid selling.
By removing the capital gains barrier, more sellers may enter the market, bringing much-needed inventory to buyers and stimulating transaction volume.
Important Disclaimer
This article is intended to provide educational commentary on pending legislation. We are not tax professionals and do not offer legal or financial advice. Always consult a licensed tax advisor before making decisions about real estate, capital gains, or wealth planning.
For more information, refer to the following IRS publications:
• Publication 523 – Selling Your Home
• Topic 701 – Sale of Your Home
Sources and Further Reading
• News Coverage: Mortgage Research
• Full Bill Text (PDF)
• Official Press Release
• YouTube Discussion on the Proposal
Final Thoughts from Christian Penner
If you’re considering selling your home, refinancing, or rebalancing your portfolio, now is the time to position yourself for the road ahead. As a 28-year mortgage industry veteran and real estate finance strategist, my role is to help you understand not only what is happening — but how to use it to your advantage.
Let’s discuss how this proposed change could affect your future plans, your tax exposure, and your borrowing power.
Call or text me anytime: 561-316-6800
Your financial future starts with the right conversation.
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