Florida Capital Gains Tax on a Home Sale: The $250,000 and $500,000 Exclusions

Last updated November 14, 2026. Citations come from the Florida statutes and official agency pages linked in Sources. Where we could not confirm something on an official page, we say so.

Florida has no personal income tax, but the IRS lets you exclude up to $250,000 of gain on the sale of your main home, or $500,000 if married filing jointly, if you meet the ownership and use tests. These are federal rules from IRS Publication 523.

Federal exclusion rules

• If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from income, or up to $500,000 if you file a joint return with your spouse. (IRS Topic No. 701, Sale of Your Home)
• Ownership test: you or your spouse owned the home for at least 24 months (2 years) out of the last 5 years before the sale. Use test: you used it as a residence for at least 24 months of the previous 5 years. (IRS Topic No. 701)
• Generally you are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period before the sale of your home. (IRS Topic No. 701)
• If you receive Form 1099-S, you must report the sale even if the gain is excludable; you must also report it if you cannot exclude all the gain, using Schedule D (Form 1040) and Form 8949. (IRS Topic No. 701)
• Publication 523 (2025): 'you may exclude the first $250,000 of gain from the sale of your home… The exclusion is increased to $500,000 for a married couple filing jointly.' (IRS Pub. 523 (2025), Selling Your Home).
• A surviving spouse may take the higher exclusion if, among other conditions, the home is sold within 2 years of the death of the spouse. (IRS Pub. 523 (2025))
• A reduced maximum exclusion may apply if the sale is due to a change in workplace location, a health issue, or an unforeseeable event. (IRS Pub. 523 (2025))

Florida

• Florida's Constitution bars a state tax on the income of natural persons beyond the federal credit amounts: 'No tax upon estates or inheritances or upon the income of natural persons who are residents or citizens of the state shall be levied by the state, or under its authority, in excess of the aggregate of amounts which may be allowed to be credited upon or deducted from any similar tax levied by the United States or any state.' (Fla. Const. Art. VII Sec. 5(a)).

What we could not confirm

• Inherited property step-up in basis rule (IRC Sec. 1014) was not opened.
• Net investment income tax (3.8 percent) and long-term capital gains rate brackets not opened.
• Treatment of sales by investors/non-primary residences not opened beyond 'main home' language.

How to sell a house in Florida when this applies to you

1. Find out what the title company needs. For an inherited or transferred house, that usually means the recorded document that shows who owns it today.
2. Get a payoff for any mortgage and the amount of any unpaid property tax. Both are paid from the sale proceeds at closing.
3. Compare offers on what you net after repairs, commissions and closing costs, not on the headline price.
4. If you want a fast, simple closing, ask for a written cash offer. We buy houses as-is, with no repairs and no agent commission. See how we buy houses in Florida.

Florida Capital Gains Tax on a Home FAQ

Does Florida tax gains on a home sale?

No state income tax applies. The Florida Constitution limits taxes on natural persons' income, and federal tax still applies.

How much gain can I exclude?

Up to $250,000, or $500,000 if married filing jointly and the tests are met (IRS Pub. 523).

Can I sell my Florida house as-is?

Yes. A cash buyer purchases as-is, and the title company pays any mortgage and unpaid property tax from the proceeds at closing.

Sources

• Fla. Const. Art. VII Sec. 5(a)
• IRS Topic No. 701, Sale of Your Home
• IRS Pub. 523 (2025), Selling Your Home

This guide is general information, not legal or tax advice. Laws, forms and fees change, so confirm details with the official office or a Florida tax professional.