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Congress·In Committee·H.R. 7034

To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

Congress Moves to Remove the Cap on Tax-Free Profit When You Sell Your Primary Home

3 months ago·View on Congress.gov
Part of: Congress Moves to Eliminate Capital Gains Tax on Primary Home Sales

Legislative Progress

House
Senate
President
Law

Key Points

  • Congress would remove the current dollar cap on how much profit from selling your main home can be tax-free.
  • This would mainly help homeowners in high-cost areas or people who sell after big price increases, because larger profits could be excluded from taxes.
  • If you sell a home for a gain after the law takes effect, more (or possibly all) of that gain could avoid federal income tax, depending on the other rules that still apply.
  • This could reduce federal tax revenue and shift who benefits most toward higher-income homeowners with bigger home-price gains.
  • The change would apply only to home sales happening after the bill is enacted; it would not automatically change taxes for past sales.
TaxesHousing

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)
Housing Assistance
Neutral
Renter
Neutral
Positive Impacts(2)
Homeowner
Helps
Retiree
Helps

Milestones

2 milestones2 actions
Jan 13, 2026House

Referred to the House Committee on Ways and Means.

Jan 13, 2026

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Related Bills

2 bills
H.R. 4327Related bill

No Tax on Home Sales Act

Jan 21 — ASSUMING FIRST SPONSORSHIP - Mr. Alford asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 4327, a bill originally introduced by Representative Greene (GA), for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

H.R. 7131Related bill

Middle Class Home Tax Elimination Act

Jan 16 — Referred to the House Committee on Ways and Means.

Source Information

Document Type

Congressional Bill

Official Title

To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

Bill NumberHR 7034
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(6)
R: 6

Analysis generated by AI. Always verify with official sources.