Rep. Marjorie Taylor Greene (R) has introduced the No Tax on Home Sales Act, which would eliminate the federal capital gains tax on the sale of primary residences. This proposal aims to provide relief to homeowners looking to sell and support the housing market, which is facing a supply crisis.
The bill is only two pages long, but it delivers massive changes to current codes relating to the Internal Revenue Service (IRS). In total, it aims to achieve four objectives.
As stated before, the bill eliminates the federal capital gains tax on home sales, delivering tax relief to homeowners looking to downsize or relocate without being penalized for appreciation.
By eliminating the capital gains tax, the bill encourages mobility by removing a key disincentive to selling, helping to increase housing supply. It also protects first-time buyers by improving inventory and lowering prices in the most constrained housing markets.
One important thing to note is that the bill explicitly applies to individuals selling their primary residence, and does not apply to home flippers or real estate investors.
Rep. Greene commented on the importance of this bill, emphasizing the aid it brings to hardworking families.
“Families who work hard, build equity, and sell their homes should not be punished with massive tax bills,” said Rep. Greene. “The capital gains tax on home sales is an outdated, unfair burden—especially in today’s housing market, where values have skyrocketed. My bill fixes that.”
Rep. Greene views this issue as one that has been decades in the making, stemming from outdated IRS codes. The problem comes from the fact that the IRS allows an exclusion of up to $250,000 ($500,000 for joint filers) in capital gains from home sales, but those limits haven’t been updated since 1997.
“Homeowners who have lived in their homes for decades, especially seniors in places where values have surged, shouldn’t be forced to stay put because of an IRS penalty,” Rep, Greene added. “My bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families.”
