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Congress·In Committee·about 1 year ago

Congress proposes bigger tax-free home sale profits to encourage more homes to be listed

Also known as: More Homes on the Market Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(5)
Housing Assistance
Neutral
Child Tax Credit
Neutral
Renter
Neutral
Small Business Owner
Neutral
Gig Worker
Neutral
Positive Impacts(4)
Homeowner
Helps
Retiree
Helps
Chronic Illness
Helps
Disability Benefits
Helps

Key Points

  • Congress would double the tax-free profit limit when you sell your main home: from $250,000 to $500,000 for most single filers.
  • For married couples filing jointly, it would double from $500,000 to $1,000,000 in tax-free profit on the sale of a main home.
  • Starting after 2024, these dollar limits would rise over time with inflation, so the tax break wouldn’t shrink in value.
  • If it becomes law, the new limits would apply to home sales that happen after the date the law is enacted.
  • Supporters say this could encourage more homeowners to sell, which could put more homes up for sale—especially in markets where prices have risen a lot.
TaxesHousingEconomy

Milestones

2 milestones2 actions
Feb 13, 2025House

Referred to the House Committee on Ways and Means.

Feb 13, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Immediately after the bill becomes law (enactment date)

New, higher tax-free limits apply to home sales after the law is enacted

If you sell your primary home after the enactment date, you may owe less (or no) federal tax on your home-sale profit compared with today’s limits.

Starting with the first tax year that begins after 2024 (for most people, 2025)

Inflation adjustments begin for tax years starting after 2024

Over time, the $500k and $1M limits would automatically rise, which helps keep the tax break from shrinking as prices increase.

Before the first filing season after enactment

IRS updates forms and instructions for reporting home-sale gains under the new limits

Sellers and tax preparers would follow updated rules when filing the return for the year you sold your home.

Related News

8 articles
Realtor.com·about 2 months ago

The 10 Real Estate Stories That Shaped Housing in 2025

Year-in-review story that specifically cites the More Homes on the Market Act as a bipartisan alternative to changing home-sale capital gains taxes, and discusses the exclusion limits and indexing concept.

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Realtor.com·7 months ago

Minnesota Homeowners Could Face Hidden Tax on Home Sale Profits

Explains how current federal home-sale gain exclusions can create tax exposure and explicitly describes the More Homes on the Market Act as the proposed fix (doubling limits and indexing to inflation).

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Realtor.com·7 months ago

Texas Homeowners Could Face Hidden Tax on Home Sale Profits

Hyperlocal explainer that explicitly references the More Homes on the Market Act’s higher exclusion limits and inflation indexing, and positions it as one approach to unlocking listings.

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Source Information

Document Type

Congressional Bill

Official Title

More Homes on the Market Act

Bill NumberHR 1340
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(95)
D: 59R: 36

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.