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.
Raphaela 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.
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