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Free real estate capital gains tax calculator for property sales. Calculate capital gains tax with primary residence exclusions, depreciation recapture, and tax savings strategies. Our tool helps you understand your tax obligations when selling real estate.
Last updated: February 2, 2026
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Renovations, additions, major repairs that add value
Real estate commissions, closing costs, etc.
Total depreciation claimed during ownership (rental property)
Must own 2+ years and live in 2+ of last 5 years
Your annual taxable income (excluding this sale)
Total Capital Gain
$120,000
$120,000 excluded (Primary Residence)
Taxable Gain (After Exclusion)
$0
Holding Period
5.5 years
Long-Term
Tax Rate
15%
Tax Breakdown:
Net Proceeds (After Tax)
$470,000
Tax Strategies & Recommendations
Exclusion
$250k / $500k
Automatically applies primary residence exclusion if qualified
Tax Rate
Up to 25%
Calculates depreciation recapture at up to 25% rate for rental property
Basis
Purchase + Improvements
Maximize cost basis with improvements to reduce taxable gain
Period
Long/Short Term
Automatic calculation of holding period and applicable tax rates
Rates
0%, 15%, 20%
Applies current long-term capital gains tax rates based on income
Net Amount
After All Taxes
Calculate your actual proceeds after all taxes and expenses
Primary residence sale: $500,000 (purchased $300,000, improvements $50,000, expenses $30,000, owned 5 years):
Capital Gain
~$120,000
Excluded
$120,000
Tax Owed
$0
Our Real Estate Capital Gains Tax Calculator simplifies the complex process of estimating capital gains tax on property sales. It applies IRS rules for primary residence exclusions, depreciation recapture, and long-term capital gains rates to provide accurate tax estimates for real estate transactions.
Cost Basis = Purchase Price + ImprovementsAdjusted Basis = Cost Basis - DepreciationCapital Gain = Sale Price - Adjusted Basis - Selling ExpensesTaxable Gain = Capital Gain - Primary Residence ExclusionDepreciation Recapture Tax = Depreciation × 25% (max)Capital Gains Tax = Taxable Gain × Long-Term Rate (0%, 15%, 20%)These formulas calculate real estate capital gains tax with primary residence exclusions ($250k single/$500k married) and depreciation recapture rules. The calculator automatically determines holding period, applies exclusions if qualified, and calculates taxes based on your income and filing status.
Visualizes the steps from property sale to net proceeds after capital gains tax
Real estate capital gains tax applies when you sell property for more than you paid (adjusted for improvements and depreciation). Primary residences qualify for significant exclusions ($250k/$500k), while investment properties face depreciation recapture and full capital gains tax. Understanding these rules helps maximize tax savings when selling real estate.
Explore other real estate calculators like our Capital Gains Calculator or Rental ROI Calculator.
Get Custom Calculator for Your BusinessResult: $0 capital gains tax due to primary residence exclusion
The $500,000 exclusion covers the entire gain, resulting in no tax liability.
Result: $26,250 total tax ($15,000 depreciation recapture + $11,250 capital gains)
Rental property sales include depreciation recapture at 25% plus capital gains tax on remaining gain.
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