No Tax on Home Sales Act
- Bill Number
- H.R. 4327
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-01-21: ASSUMING FIRST SPONSORSHIP - Mr. Alford asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 4327, a bill originally introduced by Representative Greene (GA), for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
- Last Updated
- 2026-04-10T08:05:27Z
AI-Generated Summary
Purpose
The "No Tax on Home Sales Act" (H.R. 4327) aims to remove financial caps on the tax exclusion for profits earned from selling a primary home, allowing homeowners to avoid taxes on all qualifying gains from such sales.
Key Provisions
- Amendment to Tax Code: Modifies Section 121(b) of the Internal Revenue Code of 1986 by eliminating specific paragraphs that set dollar limits on the exclusion amount.
- Redesignation and Conforming Changes: Renumbers remaining paragraphs in Section 121(b) and updates related rules in Section 121(c) to align with the removal of limits, ensuring the exclusion applies without caps while maintaining other requirements (e.g., the home must have been the taxpayer's principal residence for at least 2 of the 5 years before the sale).
- Effective Date: Applies to home sales and exchanges occurring after the bill's enactment.
Significant Changes to Existing Law
- Under current law, single filers can exclude up to $250,000 in gains, and married couples filing jointly up to $500,000, from the sale of their principal residence if ownership and use tests are met.
- This bill eliminates these fixed dollar thresholds entirely, permitting the full exclusion of any gain amount that meets the non-financial criteria, such as residency duration.
Potential Impacts
- On Citizens: Homeowners, especially those with high-value properties or large appreciation in home values, would face lower or no capital gains taxes on sales, potentially increasing disposable income and encouraging property transactions.
- On Government Agencies: The Internal Revenue Service (IRS) would collect less tax revenue from home sales, which could affect federal budget projections; no direct impact on other agencies.
- On International Relations: None apparent, as the bill focuses on domestic tax policy for U.S. residents.
Main Stakeholders Affected
- Homeowners and Taxpayers: Primary beneficiaries, particularly middle- and upper-income individuals selling homes with gains exceeding current limits.
- Real Estate Industry: Could see boosted market activity due to reduced tax barriers on sales.
- Federal Government and IRS: Faces revenue loss, estimated in billions over time depending on housing market trends.
- Low-Income Renters or Non-Homeowners: Indirectly affected through potential shifts in housing affordability or tax policy debates.
Notable Legal, Constitutional, or Political Implications
- Legal: Simplifies tax rules for home sales by removing caps, but retains core eligibility tests to prevent abuse; no challenges to constitutional authority, as it falls under Congress's power to levy taxes (Article I, Section 8).
- Constitutional: Aligns with equal protection principles by broadening benefits without discrimination, though it may raise equity concerns in tax fairness.
- Political: Represents a tax relief measure favoring property owners, potentially sparking debates on revenue loss versus economic stimulus; as an introduced bill, its passage could influence broader tax reform discussions in Congress.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Greene, Marjorie Taylor [R-GA-14]
Cosponsors (7)
Rep. Owens, Burgess [R-UT-4], Rep. Taylor, David J. [R-OH-2], Rep. Hamadeh, Abraham J. [R-AZ-8], Rep. Alford, Mark [R-MO-4], Rep. Harris, Mark [R-NC-8], Rep. Correa, J. Luis [D-CA-46], Rep. Mann, Tracey [R-KS-1]
Recent Actions
- 2026-01-21: ASSUMING FIRST SPONSORSHIP - Mr. Alford asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 4327, a bill originally introduced by Representative Greene (GA), for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
- 2025-07-10: Referred to the House Committee on Ways and Means.
- 2025-07-10: Introduced in House
- 2025-07-10: Introduced in House
Bill Versions
- No Tax on Home Sales Act — issued 2025-07-10 — PDF (2 pages)