What Trump’s Push to Eliminate Capital Gains Tax on Home Sales Could Mean—Especially for Florida Homeowners
🇺🇸 The Latest: Trump Considers Eliminating Capital Gains Tax on Homes
In a July 2025 press conference from the Oval Office, President Donald Trump reaffirmed he’s “thinking about” eliminating capital gains taxes on the sale of homes. The idea surfaced shortly after he signed the One Big Beautiful Bill Act, which extended his 2017 tax cuts and included new tax breaks for tips, overtime pay, and car loans.
The proposal aligns with legislation introduced by Rep. Marjorie Taylor Greene called the No Tax on Home Sales Act, which would eliminate capital gains taxes on the sale of primary residences—something that hasn’t been adjusted for inflation since 1997.
With home prices now more than 260% higher than they were in the late '90s, this idea has stirred debate across the country—but especially in high-appreciation markets like Florida.
🏖️ Why This Matters So Much for Florida Homeowners
Florida has seen a massive influx of new residents, surging home prices, and dramatic equity growth in recent years—especially in coastal counties like Pinellas, Sarasota, Palm Beach, and Miami-Dade.
That means:
Long-time residents could owe six-figure taxes when they sell.
Investors may face barriers to cashing out appreciated properties.
Seniors and downsizers may feel stuck due to tax penalties.
According to the National Association of Realtors, nearly 1 in 3 U.S. homeowners now risk breaching the capital gains threshold when selling, and that number is climbing. In high-growth markets like Florida, it’s even higher.
🧾 How Capital Gains Tax on Homes Works Today
If you sell a home you’ve lived in as your primary residence for at least 2 of the past 5 years, you can exclude:
$250,000 of profit if you’re single
$500,000 if you’re married and filing jointly
If your gain exceeds those limits, the excess is taxed as a long-term capital gain (at 0%, 15%, or 20%, depending on income).
2025 Capital Gains Rates:
0%: Income below $48,350 (single) / $96,700 (married)
15%: Up to $533,400 (single) / $600,050 (married)
20%: Above those thresholds
Key issue: These thresholds were set in 1997 and never adjusted for inflation.
A recent study found that if adjusted for inflation, the exemption would be $660,000 for singles and $1.32 million for couples.
📈 Who in Florida Would Benefit the Most?
1. Long-Time Homeowners in Hot Markets
If you’ve owned a Florida home for 10+ years in places like St. Pete, Naples, or Boca Raton, there’s a high chance your gains exceed $500K. Eliminating the tax would mean keeping more of your equity.
2. Retirees Looking to Downsize
Older homeowners often delay selling because of the tax hit. This reform could free up family-sized homes in desirable school zones.
3. Real Estate Investors (if included)
Though the current bill targets only primary residences, if broadened, it could benefit investors by reducing or eliminating taxes on appreciated property sales.
⚖️ Who Might See Less Impact?
Recent homebuyers whose equity hasn’t grown significantly.
Middle-income sellers whose gains fall below current caps.
Buyers, who won’t directly benefit from the tax cut but may feel ripple effects (more below).
🏠 What About Florida Home Buyers?
Possible Pro: More homes for sale: Tax-free profit might motivate more homeowners to list.
Possible Cons: Investor activity: If the policy triggers investor-driven flips, buyers could still face inflated prices.
🔍 Concerns and Tradeoffs
1. Federal Revenue
The Congressional Budget Office estimates that Trump’s recent tax-and-spending bill will increase deficits by $3.4 trillion over a decade. Eliminating capital gains taxes would further reduce revenue, raising questions about sustainability.
2. Wealth Concentration
According to Yale’s Budget Lab, homeowners who currently exceed the capital gains thresholds have an average net worth of $5.7 million. In contrast, those who fall below average around $1 million. This raises equity concerns.
3. Inflation Pressure
If more money enters the housing market and the Fed doesn’t adjust interest rates, the policy could contribute to price inflation—a concern also raised by Fed Chair Jerome Powell in recent months.
🏛️ What’s Next?
Trump can’t implement this tax change alone—Congress would need to pass legislation. The No Tax on Home Sales Act, led by Rep. Greene, is gaining attention, but it’s unclear if it will move forward during a tight fiscal year.
While it's being framed as pro-homeowner, some analysts say the proposal may unintentionally reward wealthier households and do little for affordability in the short term.
🏁 Final Thoughts for Florida Residents
Florida’s housing market is unique—booming prices, high in-migration, and aging demographics mean that more homeowners here are sitting on substantial equity. Eliminating capital gains taxes on home sales could offer a major windfall for many.
But it’s also worth weighing:
Whether this would improve affordability for buyers
If it encourages necessary downsizing and turnover
How it might reshape investment activity in your local market
