Congresswoman Marjorie Taylor Greene dropped a tax reform bill today that’s already stirring up the housing market. The No Tax on Home Sales Act, introduced July 10, aims to eliminate the federal capital gains tax on the sale of primary residences. That’s not a tweak. That’s a full wipeout of a tax that’s been hitting middle-class homeowners harder every year. The current IRS exclusion, $250,000 for single filers, $500,000 for joint, hasn’t been updated since 1997. Home prices have jumped 119% since then. More Americans are getting taxed on gains that used to be considered rare.
The bill doesn’t touch flippers or investors. It’s written for people selling their main home. Greene says the goal is to unlock equity, boost housing supply, and remove the penalty that keeps seniors and long-term owners stuck in place. The housing market is tight. Inventory is down 18% year-over-year. In cities like Austin and Tampa, median home prices have doubled since 2015. Sellers who’ve lived in their homes for decades are now facing tax bills that weren’t part of the plan.
If passed, the bill would remove the capital gains tax entirely for qualifying home sales. That means no federal tax on appreciation, regardless of how much the home has gained in value. Greene’s office says this would increase mobility, especially for retirees and families looking to relocate or downsize. It would also improve inventory in constrained markets, giving first-time buyers a shot at homes that aren’t locked up by tax fear.
The IRS collected over $47 billion in capital gains taxes in 2024. A large chunk came from real estate transactions. Eliminating that stream would cut federal revenue, but Greene argues the tradeoff is worth it. More movement means more listings, more construction, and more affordability. The bill is expected to head to the House Ways and Means Committee next week. No Democratic response has been published yet.
The proposal comes at a time when housing affordability is at a 30-year low. Mortgage rates are hovering near 6.9%, and the average home price nationwide is $412,000. Greene’s bill doesn’t touch lending or interest rates, but it targets the tax bottleneck that’s keeping inventory frozen. If it passes, it could be one of the most aggressive housing reforms in decades.
Sources:
https://greene.house.gov/news/documentsingle.aspx?DocumentID=1125
https://flvoicenews.com/rep-marjorie-taylor-greene-introduces-no-tax-on-home-sales-act/
https://www.aol.com/bill-eliminate-federal-tax-home-193500567.html
https://www.bubbleinfo.com/2025/07/10/tax-free-home-sales/
https://thescoop.us/greene-breaks-liberal-tax-trap-with-no-tax-on-home-sales-bill/