Congress doubles home-sale tax break for wealthy sellers, not renters
S. 3332 — More Homes on the Market Act · Filed by John Cornyn (R-TX) · 22 cosponsors · Introduced Dec 3, 2025 · Referred to committee
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What it does
This bill doubles the federal tax exclusion for gains on the sale of a primary home from $250,000 to $500,000 for single filers and from $500,000 to $1,000,000 for married couples filing jointly. The new amounts will adjust annually for inflation starting in 2026. The effect is that homeowners can exclude twice as much profit from federal income tax when they sell their primary residence.
Why we flagged it
The bill's operative mechanism is a straightforward increase in the capital-gains tax exclusion for primary-residence sales. It is a tax relief measure targeted at homeowners, not a housing-supply or affordability intervention despite the title's framing.
What the text implies
- The bill does not address housing supply or affordability directly; the tax exclusion increase may not incentivize additional home sales or lower prices, making the stated purpose ('More Homes on the Market') potentially misleading.
- The benefit is regressive: homeowners with large gains (typically higher-income households and those in high-appreciation markets) capture the full benefit, while renters and first-time buyers receive nothing.
The full analysis lists 4 implications of this text.
Who stands to gain
homeowners selling primary residences at a profit; higher-income households in high-appreciation real-estate markets