Trump Proposes No Tax on Home Sales in 2025
In July 2025, President Trump shared a new idea: no more taxes on profits when you sell your home. He is pushing for a new law called the “No Tax on Home Sales Act.” It would remove capital gains taxes for people who sell their primary home.
This idea has gained support from some lawmakers, including Representative Marjorie Taylor Greene. The goal? Help more families keep the money they earn from selling their homes.
Let’s break down what capital gains tax is, what this new law could change, and how it might affect you.
What Is Capital Gains Tax?
When you sell something for more than you paid, the profit is called a capital gain. The government often taxes that profit. This is true for things like:
- Stocks
- Businesses
- Homes
For example:
If you bought your home for $200,000 and sold it for $350,000, your gain is $150,000. Today, the IRS may tax part of that profit.
Current Tax Rules for Selling a Home
Right now, there are some tax breaks when you sell your main home.
If you're single, the first $250,000 in profit is tax-free.
If you're married filing jointly, the first $500,000 is tax-free.
To qualify, you must:
- Own the home for at least 2 years
- Live in the home for at least 2 of the last 5 years
If your profit goes over those limits, you pay capital gains tax on the rest.
What Trump Is Proposing
Trump wants to go further. Under the “No Tax on Home Sales Act,” you would:
- Pay zero tax on the profit from selling your main home
- No matter how big the gain is
- As long as it’s your primary residence
That means you could sell your house and keep 100% of the profit—no matter how much it is.
Why Some People Like This Idea
Supporters say this law would help:
Homeowners:
More people might sell homes, downsize, or move without worrying about tax bills.
The Housing Market:
If more people sell, it might help free up houses—especially for first-time buyers.
Retirees:
Older adults who want to move or cash out their home’s value could benefit most.
The Economy:
Supporters believe people will spend or invest their home sale money—helping the economy grow.
Why Some People Are Against It
Not everyone agrees with the plan. Critics say:
It Mostly Helps the Rich:
Wealthier homeowners who have big homes and big profits would save the most.
It Could Reduce Tax Money:
The U.S. government could lose billions of dollars in tax revenue, which helps pay for roads, schools, and more.
Home Prices Might Go Up:
If demand increases, it could push home prices even higher—making it harder for new buyers.
What Trump Said About Interest Rates
President Trump also said this plan may not be needed if the Federal Reserve cuts interest rates. That’s because lower rates make mortgages cheaper, which could help the housing market too.
But Trump added that if the Fed doesn’t act fast, this tax break could give home sellers a big reason to make a move.
Will This Become Law?
Right now, the No Tax on Home Sales Act is just a proposal. For it to become law, it would need to:
- Pass the House of Representatives
- Pass the Senate
- Be signed by the President
With the 2025 elections coming soon, some lawmakers may push for fast action—especially those who support Trump’s plan.
What Should You Do Now?
Here are a few things you can do while we wait to see if the law passes:
1. Know Your Home’s Value
Check what your home might sell for. You can use sites like Zillow or talk to a local agent.
2. Learn Your Tax Basis
Find out how much you paid for your home, and track any updates or renovations. This helps calculate your profit.
3. Watch for Updates
If this law passes, your tax planning could change. Follow news from trusted sources—or talk to a tax expert.
4. Don’t Rush to Sell (Yet)
The law hasn’t passed yet, so current rules still apply. If you're thinking about selling, weigh the pros and cons with your advisor.
Example: How This Could Help a Seller
Let’s say Maria and Carlos bought a home for $300,000 in 2005. In 2025, they sell it for $900,000—a $600,000 profit.
Under current rules, $500,000 of that profit is tax-free. But they’d owe capital gains tax on the extra $100,000.
With the new law, they could keep the full $600,000—no taxes at all.
What to Expect Next
This proposal could become a hot topic as more people learn about it. Watch for:
- Congressional hearings on housing or tax reform
- New bills or amendments from lawmakers
- Updates from the White House or IRS