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Selling in Florida

Capital Gains When Selling Your Home in Florida: What to Know

Will you owe capital gains tax when you sell your Florida home? Here's how the primary-residence exclusion works, what Florida's no state income tax means, and how to plan.

August 21, 20266 min readRaphaela Rolim
Key Insight

Will you owe capital gains tax when you sell your Florida home? Here's how the primary-residence exclusion works, what Florida's no state income tax means, and how to plan.

Short answer

When selling your Florida home, many homeowners owe little or no capital gains tax because of the federal primary-residence exclusion - up to $250,000 of gain if single, or $500,000 if married filing jointly, generally when you've owned and lived in the home for at least 2 of the last 5 years. Florida also has no state income tax, so there's no separate state capital gains tax. Investment and second homes are treated differently. This is general information - confirm your situation with a tax professional.

Taxes on a home sale worry many sellers, but for a primary residence the outcome is often better than expected. Here's the general picture for Florida homeowners.

The federal primary-residence exclusion

If the home was your primary residence for at least 2 of the last 5 years, you can generally exclude up to $250,000 of gain (single) or $500,000 (married filing jointly) from federal capital gains tax. Many sellers fall entirely within this exclusion.

Florida has no state income tax

Florida does not levy a state income tax, so there is no separate Florida state capital gains tax on your home sale - a real advantage compared with many states.

Investment and second homes are different

Rental properties and second homes do not qualify for the primary-residence exclusion and may involve depreciation recapture and other rules. If you're selling an investment property, plan with a tax advisor - and consider a 1031 exchange only with professional guidance.

Three free ways to start - no obligation

1. Free Home Value Review. Know your likely sale price and estimated gain.

2. Free Seller Net Sheet. Your estimated net proceeds after costs.

3. Free 15-Minute Selling Strategy Call. Plan your sale with the numbers in hand.

Talk to a local Central Florida specialist

Raphaela Rolim, Real Estate in FloridaRaphaela Rolim - Real Estate in Florida
THE TEAM by LPT Realty LLC
Call or text: (689) 222-7912

Frequently asked questions

Do I pay capital gains when selling my home in Florida

Often little or none for a primary residence, thanks to the federal exclusion (up to $250k single / $500k married). Florida has no state income tax. Confirm with a tax professional.

Does Florida have a state capital gains tax

No. Florida has no state income tax, so there's no separate state capital gains tax on your home sale.

What about selling a rental or second home

Those don't qualify for the primary-residence exclusion and involve different rules like depreciation recapture. Plan with a tax advisor.

Informational only and not tax or legal advice, and not a solicitation of property already listed with another broker. Marketing exposure is subject to brokerage, MLS, and platform rules. Commissions are negotiable and are not set by law. Submitting a form does not list your home or create an agency relationship; representation begins only upon a signed listing agreement.

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