Florida ranks because the second greatest state within the nation for the lowest general tax burden. (Alaska isn’t any. 1.) One cause for this optimistic rating is the Sunshine State costs no revenue tax. Nonetheless, there are taxes on promoting a home in Florida.
On this information, we’ll break down the important thing taxes you’ll face when promoting your Florida house, together with capital features tax, documentary stamp tax, and property taxes. We’ll additionally share suggestions from an professional Florida actual property agent.
Editor’s notice: This put up is for academic functions and isn’t meant to be construed as monetary or tax recommendation. HomeLight encourages you to achieve out to an advisor.
What taxes will you pay when promoting a home in Florida?
When promoting a home in Florida, you’ll encounter three essential kinds of taxes. These can have an effect on your general earnings and the ultimate quantity you stroll away with after the sale. Listed below are the most typical taxes you have to be conscious of:
- Capital features tax
- Documentary stamp tax (switch tax)
- Property taxes
Let’s take a more in-depth have a look at every of those taxes on promoting a home in Florida.
Capital features tax
Should you promote your Florida house for greater than you paid for it, the revenue could also be topic to a federal capital features tax.
As a result of Florida doesn’t tax revenue, you gained’t be topic to an extra state capital features tax. “That’s a huge benefit,” explains Abby Nelson, a top-rated Orlando space actual property agent with greater than 20 years of expertise. “It just falls into the federal capital gains tax implications, but there’s no state-level capital gains tax here in Florida.”
This profit applies even in the event you reside out of state and personal a summer time or trip house in Florida.
The federal quantity you owe will depend on varied components, together with how lengthy you’ve owned the property and your revenue degree. Nonetheless, there are exemptions obtainable for major residences, which may considerably cut back or remove your capital features tax legal responsibility. (Extra on exemptions in a minute.)
Capital features are the earnings made if you promote an considerable asset, equivalent to your home. For instance, in the event you purchase a house for $300,000 and promote it for $500,000, you could have a capital achieve of $200,000.
On the federal degree, features might be thought-about both short-term or long-term.
- Brief-term capital features are if you promote an asset inside a yr of buying it. These features are included in your bizarre revenue and taxed in accordance with your tax bracket.
- Lengthy-term capital features are any earnings created from the sale of an asset after no less than a full yr of possession. For a house sale, these features are taxed in accordance with the next desk.
2025 capital features tax brackets (long-term capital features)
The desk under exhibits the long-term capital features charges for tax yr 2025. Single filers can qualify for the 0% long-term capital features charge with a taxable revenue of $48,350 or much less. Married {couples} submitting collectively can qualify with an revenue of $96,700 or much less.
| Tax charge | Single filers | Married submitting collectively | Head of family |
| 20% | $533,401 or extra | $600,051 or extra | $566,701 or extra |
| 15% | $48,351 to $533,400 | $96,701 to $600,050 | $64,751 to $566,700 |
| 0% | $0 to $48,350 | $0 to $96,700 | $0 to $64,750 |
Supply: IRS.gov
Capital features tax exclusion
Most householders can benefit from the capital features tax exclusion, a tax break for house sellers who meet sure circumstances. It is a statutory exclusion on earnings from the sale of your loved ones house. The utmost quantity of capital achieve that may be excluded is $250,000 for single filers or $500,000 for a married couple submitting collectively.
In line with IRS Publication 523, to qualify for the complete exclusion quantity, the next standards should be met:
- The house being offered is your major residence.
- You’ve owned the house for no less than two years within the five-year interval earlier than promoting it.
- You’ve lived within the house for no less than two years throughout the five-year interval earlier than promoting it. The years you’ve lived in it don’t have to be consecutive. Sure exceptions to this rule are made for many who are disabled or these within the navy, International Service, intelligence neighborhood, or Peace Corps.
- You didn’t purchase the house by means of a like-kind trade (often known as a part 1031 trade) throughout the previous 5 years. That is principally if you swap one funding property for an additional.
- You haven’t claimed the exclusion on one other house prior to now two years.
- You aren’t topic to expatriate tax (a authorities payment paid by those that resign their citizenship or take up residency abroad).
