President Trump says he’s “thinking about” eliminating capital gains taxes on the sale of primary residences. The move could give a major boost to the sluggish housing market.
Key Facts:
- President Trump mentioned eliminating capital gains tax on home sales during a press Q&A with Philippine President Marcos Jr.
- He linked the idea to broader efforts to energize the housing market, alongside calls for lower interest rates.
- Rep. Marjorie Taylor Greene introduced the “No Tax on Home Sales Act” on July 10, which would remove the capital gains tax on primary home sales entirely.
- Currently, the IRS exempts up to $250,000 ($500,000 for couples) in gains from taxation, limits that haven’t changed since 1997.
- Greene’s bill would only apply to primary residences, not to home flippers or investment properties.
The Rest of The Story:
President Trump floated the idea of eliminating the capital gains tax on home sales during a discussion with reporters Tuesday.
When asked about the impact such a change could have on the housing market, Trump replied, “We’re thinking about that,” while also emphasizing the role of high interest rates in suppressing activity.
He reiterated, “We’re thinking about — no tax on capital gains on houses,” signaling his administration is weighing the policy.
Rep. Marjorie Taylor Greene praised Trump’s comments and pointed to her recent legislation.
“My bill would ELIMINATE the federal capital gains tax on the sale of your primary residence. You worked for it. You should keep it,” she said.
Current IRS rules allow homeowners to avoid taxes on the first $250,000 in profits ($500,000 for joint filers) if they’ve lived in the home for at least two years in the past five.
But profits above those limits are taxed as capital gains, with the rate depending on the seller’s income level.
Thank you, President Trump, for supporting my No Tax on Home Sales Act!
My bill would ELIMINATE the federal capital gains tax on the sale of your primary residence.
You worked for it. You should keep it.
Let’s get this bill passed! pic.twitter.com/q8e1cs6met
— Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG) July 22, 2025
Commentary:
Removing capital gains tax on primary home sales would be a major tailwind for the real estate market.
Right now, many families feel stuck — they want to move, but selling comes with heavy costs.
Between elevated interest rates and long-standing capital gains thresholds, it often doesn’t make financial sense to sell and upgrade, especially for growing families who need more space.
The tax burden can eat into years of savings and equity.
This situation discourages mobility and suppresses supply in an already tight housing market.
Longtime owners are penalized for building equity, even though that equity was often earned through decades of work, upkeep, and responsible financial planning.
By removing the capital gains tax on primary residences, families would be free to move when it makes the most sense for their needs — not when the tax code allows it.
It would also encourage older homeowners sitting on appreciated properties to downsize, freeing up homes for younger families.
That’s a natural, healthy circulation that’s being blocked by outdated tax policy.
Some argue the current exemptions are already generous, but those limits haven’t budged in nearly 30 years.
Housing prices have more than doubled since then. Adjusting or eliminating this tax isn’t a handout — it’s catching up with reality.
Greene’s bill, backed by Trump, wisely excludes flippers and speculators. This ensures the benefit stays with homeowners, not investors trying to game the system.
If enacted, the change would likely stimulate sales, construction, and local economies without punishing Americans who’ve done everything right.
It’s a win for fairness and growth.
The Bottom Line:
President Trump’s suggestion to eliminate capital gains tax on home sales is more than a political soundbite — it could transform the housing market.
Backed by Rep. Greene’s bill, the proposal targets real, long-standing obstacles for everyday families.
It’s a policy idea that would empower homeowners, reduce government overreach, and fuel broader economic activity at a time when the housing market needs it most.
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