How much capital gains tax will I pay on $100,000?

How Much Capital Gains Tax Will You Owe on a $100,000 Profit?

When you sell a home for more than you paid, the profit is considered a capital gain—and yes, it can be taxable. But here’s the key: you only pay tax on the gain, not the full sale price. For example, if you sold your home for $350,000 and originally bought it for $250,000, your profit is $100,000. That’s the amount potentially subject to capital gains tax.

The actual tax you owe depends on your income and how long you’ve owned the property. If you’re in the 20% long-term capital gains tax bracket—common for higher-income earners—you’d owe 20% of that $100,000 gain. That comes out to $20,000 in taxes. Remember, this rate applies only to profits from assets held over a year; short-term gains are taxed at your ordinary income rate, which could be even higher.

But there’s an important caveat: if the home was your primary residence and you’ve lived there for at least two of the past five years, you might qualify for an exclusion. Single filers can exclude up to $250,000 in capital gains, and married couples filing jointly can exclude up to $500,000. In many cases, that means you may not owe anything at all—even with a six-figure gain.

So while a $100,000 profit could result in a $20,000 tax bill in theory, your real liability might be zero after exclusions. Tax rules are highly personal, so your best move is to consult a tax pro who knows your full picture. That way, you’re not just guessing—you’re planning with confidence.