Under current law, US residents can exclude up to USD 250,000 in capital gains from taxable income when selling their primary residence.
US President Donald Trump announced on 22 July 2025 that his administration is considering eliminating capital gains taxes on home sales, suggesting it could stimulate the economy.
He also noted that if the Federal Reserve lowered interest rates, such a measure might not be necessary.
“We’re thinking about that,” Trump said Tuesday in the Oval Office. “But would also unleash it just by lowering the interest rates. If the Fed would lower the rates, we wouldn’t even have to do that. But we are thinking about no tax on capital gains on houses.”
This follows the recent proposal by Republican Representative Marjorie Taylor Greene for the “No Tax on Home Sales Act,” which aims to eliminate the federal capital gains tax on sales of primary residences.
Currently, capital gains taxes apply to home sales; however, primary residences are eligible for significant deductions.
Under current law, individuals can exclude up to USD 250,000 in capital gains from taxable income on the sale of primary homes, with couples filing jointly eligible for double that amount. This limit has remained unchanged since 1997.
