From the Oval Office this week, President Donald Trump doubled down on the idea of removing the capital gains tax on home sales, a move he says could “unleash” the housing market.
As he told reporters,
“We’re thinking about that… It would also unleash it just by lowering the interest rates. If the Fed would lower the rates, we wouldn’t even have to do that. But we are thinking about no tax on capital gains on houses.”
The comment followed his earlier statement that removing the tax would be “a very big positive” and “a great incentive for a lot of people that really need money.”
The No Tax on Home Sales Act
Trump was referencing the No Tax on Home Sales Act, introduced July 10 by Rep. Marjorie Taylor Greene. The bill would eliminate federal capital gains taxes on the sale of primary residences, providing full tax relief to homeowners, especially long-time owners whose home values have soared.
Under current law, individuals can exclude up to $250,000 in capital gains from the sale of a primary home ($500,000 for joint filers), but those limits haven’t been adjusted since 1997. According to research from the University of Illinois Chicago, if indexed for inflation, today’s thresholds would be closer to $660,000 and $1.32 million.
Greene says the bill aims to “unlock equity, help fix the housing shortage, and support long-term financial security for American families.”
While the bill doesn’t apply to investors or flippers, its passage could increase mobility, boost housing inventory, and spark new debate on affordability as the 2024 campaign cycle heats up.
Stay tuned for more as the story develops.
