No Capital Gains Tax on Home Sales? What South Florida Homeowners Need to Know

A Game-Changing Bill Hits the House

A new bill in Congress, called the No Tax on Home Sales Act, could make a major difference for South Florida homeowners. Introduced by Representative Marjorie Taylor Greene, the proposal seeks to eliminate federal capital gains taxes on the sale of a primary residence. If passed, homeowners would no longer owe taxes on the profits from selling their home, regardless of how much it appreciated.

Right now, sellers can exclude up to $250,000 in profit if single, or $500,000 if married and filing jointly. But these thresholds haven’t changed since 1997, while home values have soared across the country, especially here in South Florida. This means more local sellers are finding themselves on the hook for thousands in capital gains tax. This bill aims to change that.

Why Is This Bill Being Proposed Now?

There’s been a growing gap between the current tax exemptions and the reality of today’s home prices. Here’s why this proposal is gaining attention:

• The typical home price in the U.S. is now around $360,000, far higher than in 1997 when the exemption thresholds were set.
  
  
• About 8 percent of home sales in 2023 exceeded the capital gains exclusion limit, double the percentage from 2019.
  
  
• Older homeowners are especially impacted. Nearly one-third of homeowners over 65 have homes that exceed the exemption limits, and many face capital gains tax bills over $40,000 when they sell.
  
  

What This Means for Miami-Dade and South Broward Homeowners

If passed, this bill would benefit sellers across South Florida in very real ways. Here's how:

1. Easier to Downsize or Move Without Penalty

A couple in Coral Gables or Pinecrest who bought their home in the early 2000s might now be sitting on hundreds of thousands in equity. Under current rules, anything over $500,000 in profit is taxed. But if this new bill passes, they could sell without handing over a chunk of their gain to the IRS.

This is huge for sellers in high-value areas like South Miami, Doral, and Miami Lakes. It also encourages empty nesters to sell and free up much-needed housing inventory.

2. More Flexibility for Seniors and Long-Time Owners

Older homeowners in places like Hialeah Gardens, Cutler Bay, and Homestead have often built substantial equity in their homes. But many stay put to avoid triggering a large tax bill. With this bill, they’d be free to move without a tax penalty, making it easier to retire, downsize, or relocate to be closer to family.

3. Better Inventory for Buyers

If long-time owners begin listing their homes thanks to the tax change, this opens the door for more inventory. First-time buyers shopping in Kendall, Miramar, or Hollywood could benefit from more choices and less competition.

Quick Recap: How Capital Gains Taxes Work Today

Here’s a quick look at how things work under current law:

• If you’re single, you can exclude up to $250,000 of profit from taxes.
  
  
• If you’re married and filing jointly, you can exclude up to $500,000.
  
  
• You must have owned and lived in the home as your primary residence for at least two of the past five years.
  
  
• Anything above those limits is considered taxable income and could be taxed at 15 to 20 percent, plus an additional 3.8 percent surtax for higher earners.
  
  

For example, if you bought a home in Palmetto Bay for $250,000 in 2003 and now sell it for $850,000, your profit is $600,000. If you're married, $500,000 is tax-free, but the remaining $100,000 could be taxed. At a 15 percent rate, that’s a $15,000 tax bill. Under this new bill, you’d keep all of it.

Could This Bill Actually Pass?

That’s the big question. There is a mix of support and skepticism. Supporters say it’s long overdue and simply adjusts the rules to match today’s home prices. Opponents argue it could disproportionately benefit wealthier homeowners and reduce tax revenue.

Still, there’s no denying that the tax code hasn’t kept pace with rising home values, especially in places like South Florida. Even if the bill doesn’t pass in its current form, it may lead to revisions or expansions of the current exemptions.

How Should Homeowners in Miami and Broward Prepare?

Even if this proposal takes time to move forward, now is a great time to assess your position as a homeowner or buyer.

If You’re Thinking About Selling:

• Get a free home valuation to see how much equity you’ve gained.
  
  
• Schedule a no-pressure consultation to talk through your tax exposure and net proceeds.
  
  
• Review your timeline, if you’ve owned your home for many years, your gains may already be approaching or exceeding the exemption limit.
  
  

If You’re a Buyer:

• Keep an eye on market inventory. If this bill creates more movement, more homes may become available soon.
  
  
• Start your home search now so you’re ready when the right opportunity hits.
  
  
• Use a mortgage calculator to estimate your monthly payment and compare different price points in areas like West Kendall, Pembroke Pines, and South Miami.
  
  

Local Market Examples

• A long-time homeowner in Kendall who bought in 2000 may have seen their home triple in value. This bill could help them sell with zero capital gains tax.
  
  
• A retiree in Pinecrest with a highly appreciated property could downsize without tax penalties and use their equity to support their retirement plans.
  
  
• A family in Miami Springs might finally be able to move to a larger home without worrying about tax consequences on the sale of their starter home.
  
  

What You Can Do Right Now

Regardless of whether this bill passes, it’s a smart time to look at your financial picture. With prices still holding strong in South Florida and more legislation on the horizon, it pays to be prepared.

Here are a few steps you can take today:

🔍 Homeowners – Find out what your home is worth
📆 Thinking of selling? – Schedule your free consultation
🏡 Buyers – Search active listings
📊 Crunch the numbers – Use the mortgage calculator

Final Thoughts

The No Tax on Home Sales Act could reshape how South Florida homeowners think about selling. It’s still in the early stages, but it’s already highlighting how outdated the current capital gains rules are for today’s market.

If you’re in Miami-Dade, South Broward, or surrounding areas, this is your chance to evaluate your equity, understand your options, and get ahead of the curve, tax or no tax.

Let’s talk about your real estate goals today. Whether you’re buying, selling, or staying put, I’m here to help you make informed, confident decisions.

Explore Your Options Today:
🔹 Home Valuation
🔹 Search Properties
🔹 Schedule a Seller Consultation
🔹 Use the Mortgage Calculator

About Julio N Suarez and Silvia M Suarez - The Suarez Team
We’re Julio and Silvia Suarez, a husband-and-wife real estate team serving Miami-Dade and South Broward. With nearly 20 years of experience and a deep passion for helping people buy, sell, and invest in residential real estate, we’re here to guide you every step of the way, with local knowledge, honest advice, and personalized care.

📍 Based in South Florida | Licensed with LPT Realty
🔎 Start your home search: https://www.suarezteammiami.com
🏡 Curious what your home is worth? Get your free home valuation here
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