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Congress·In Committee·3 months ago

Senate Bill Would Double Home Sale Tax Exclusions to $500K Single, $1M Married

Also known as: More Homes on the Market Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Mixed Impacts(2)
Housing Assistance
Neutral
Renter
Neutral
Positive Impacts(4)
Homeowner
Helps
Retiree
Helps
Social Security
Helps
Medicare
Helps

Key Points

  • Raises the home sale profit you can exclude from federal taxes when selling your main home: from $250,000 to $500,000 for single filers.
  • Raises the exclusion for married couples filing together: from $500,000 to $1,000,000 when selling a primary residence.
  • Adds an inflation adjustment starting after 2025, so these dollar limits can rise over time instead of staying fixed.
  • Could encourage more homeowners—especially long-time owners with big price gains—to sell without a large tax hit.
  • Would likely reduce federal tax bills for some sellers, but mainly helps people whose home value has risen a lot since they bought it.
TaxesHousing

Milestones

2 milestones2 actions
Dec 3, 2025Senate

Read twice and referred to the Committee on Finance.

Dec 3, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Immediately after the bill becomes law (enactment date)

New, higher home-sale tax-free limits become available after the law is enacted

If you sell your primary home after the enactment date, you may be able to exclude up to $500,000 (single) or $1,000,000 (married filing jointly) of profit from federal tax, instead of the lower current limits

For taxable years beginning after 2025 (so generally starting with 2026 tax year rules)

Annual inflation adjustments start for the new $500,000 and $1,000,000 limits

Over time, the tax-free limits would generally rise, helping prevent inflation from shrinking the value of the exclusion

The next tax filing season after your sale (typically by April 15 of the following year)

Tax filing season reflects the new rules for people who sold after enactment

When you file your federal taxes for the year you sold, you would report the home sale using the updated exclusion limits; some households may owe less or no capital gains tax

Related News

1 article
The Hill·3 months ago

To help lower housing prices, repeal capital gains taxes on home sales

This commentary discusses the More Homes on the Market Act as a critical tool to address the national housing shortage. It argues that doubling the capital gains exclusion and indexing it for inflation would remove the financial disincentive that prevents long-term homeowners from selling.

C+

Source Information

Document Type

Congressional Bill

Official Title

More Homes on the Market Act

Bill NumberS 3332
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(5)
D: 3R: 2

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.