--- title: Over-55 Home Sale Exemption | Capital Gains Tax description: There are no remaining age-related capital gains exemptions. However, there are other capital gains exemptions that those over the age of 55 may qualify for. Here’s what you’ll need to know about capital gains taxes when selling your investments. image: https://www.realized1031.com/hubfs/Images/photo/abstract/asian-couple-retirement-IS-1222713269.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Do I Have To Pay Capital Gains Taxes if I Am Over 55? Posted Jul 18, 2023 ![Do I Have to Pay Capital Gains Taxes If I am Over 55?](https://www.realized1031.com/hubfs/Images/photo/abstract/asian-couple-retirement-IS-1222713269.jpg) The Over-55 Home Sale Exemption was a provision in U.S. tax law that historically allowed individuals aged 55 and above to claim a tax break on the sale of their homes. However, this specific exemption was replaced in 1997 with a broader homeowner exemption policy. Contrary to some outdated information, the current tax legislation does not provide any capital gains tax benefits based solely on a homeowner's age. Nowadays, all homeowners, regardless of age, are eligible for a specific exemption on capital gains from home sales as long as they meet specific residency and ownership criteria. The rules around capital gains levies and the exclusions and deferral of those taxes are complex. Furthermore, Congress frequently adjusts and refines the relevant tax provisions, which adds to the confusion. ### At what age do you no longer have to pay capital gains tax? Capital gains taxes—whether levied on investment property, other investments like stocks, or your personal residence—are not determined based on the taxpayer’s age. Seniors don't receive any specific capital gains-related benefits, although taxpayers receive an additional[ income tax deduction](https://www.realized1031.com/blog/do-retired-seniors-have-to-file-taxes) when they reach age 65. The extra deduction can add $1,850 to your standard deduction if you are filing individually or $1,500 for each eligible person when filing jointly. ### Does my age affect how much I pay in capital gains taxes? The taxpayer’s age is not a direct determinant in the amount or percentage of capital gains taxes due on asset appreciation. However, if your total income is lower in retirement, you will pay a smaller tax percentage on a gain. Long-term capital gains taxes range from zero to 20 percent, compared to[ ordinary income](https://www.realized1031.com/blog/what-is-ordinary-income), which can reach a marginal rate of 37 percent. Remember that short-term capital gains (on assets you have held for less than a year) are taxed at the ordinary income level. The amount of total income determines the tax rate for a long-term capital gain:   | Income up to | Filing Status | Capital Gains Rate | | --- | --- | --- | | $44,625 | Single | 0 | | $492,300 | Single | 15% | | over $492,360 | Single | 20% | | $89,250 | Married/joint | 0 | | $553,850 | Married/joint | 15% | | over $553,850 | Married/joint | 20% |   ### How much will I pay in capital gains when I sell my home? As noted, the long-term capital gains tax amount depends on your overall income, whether you are 30 years old or 99. You can take specific steps to reduce or defer the tax due at any age. For example, every taxpayer is eligible for an exemption to the capital gains tax on their[ primary residence](https://www.realized1031.com/blog/capital-gains-tax-on-primary-residence-how-much-is-it-and-can-it-be-avoided) as long as they meet these criteria: 1.     Have lived in the residence for at least two of the most recent five years. 2.     Have owned the residence for at least two of the last five years. 3.     Have not claimed the exemption within the last two years. Taxpayers can exclude up to $250,000 in gains when filing as an individual and up to $500,000 when filing jointly as a married couple. Another consideration is the timing of the sale that you expect to pay taxes on. If you expect your income to drop in the future, it might make sense to wait until that tax year to complete the planned sale. If your income falls below the tax threshold, you may save on the taxes due. Another option is to time a capital gain to coincide with a loss. Suppose that you sell property at a loss in one year. If you sell another asset for a profit that year, you can balance the loss against the gain to reduce the overall taxes due. These tactics are not age-related but can help you manage your taxes over time. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. 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Contrary to some outdated information, the current tax legislation does not provide any capital gains tax benefits based solely on a homeowner's age. Nowadays, all homeowners, regardless of age, are eligible for a specific exemption on capital gains from home sales as long as they meet specific residency and ownership criteria. The rules around capital gains levies and the exclusions and deferral of those taxes are complex. Furthermore, Congress frequently adjusts and refines the relevant tax provisions, which adds to the confusion. At what age do you no longer have to pay capital gains tax? Capital gains taxes—whether levied on investment property, other investments like stocks, or your personal residence—are not determined based on the taxpayer’s age. Seniors don't receive any specific capital gains-related benefits, although taxpayers receive an additional income tax deduction when they reach age 65. The extra deduction can add $1,850 to your standard deduction if you are filing individually or $1,500 for each eligible person when filing jointly. Does my age affect how much I pay in capital gains taxes? The taxpayer’s age is not a direct determinant in the amount or percentage of capital gains taxes due on asset appreciation. However, if your total income is lower in retirement, you will pay a smaller tax percentage on a gain. Long-term capital gains taxes range from zero to 20 percent, compared to ordinary income, which can reach a marginal rate of 37 percent. Remember that short-term capital gains (on assets you have held for less than a year) are taxed at the ordinary income level. The amount of total income determines the tax rate for a long-term capital gain: Income up to Filing Status Capital Gains Rate $44,625 Single 0 $492,300 Single 15% over $492,360 Single 20% $89,250 Married/joint 0 $553,850 Married/joint 15% over $553,850 Married/joint 20% How much will I pay in capital gains when I sell my home? As noted, the long-term capital gains tax amount depends on your overall income, whether you are 30 years old or 99. You can take specific steps to reduce or defer the tax due at any age. For example, every taxpayer is eligible for an exemption to the capital gains tax on their primary residence as long as they meet these criteria: Have lived in the residence for at least two of the most recent five years. Have owned the residence for at least two of the last five years. Have not claimed the exemption within the last two years. Taxpayers can exclude up to $250,000 in gains when filing as an individual and up to $500,000 when filing jointly as a married couple. Another consideration is the timing of the sale that you expect to pay taxes on. If you expect your income to drop in the future, it might make sense to wait until that tax year to complete the planned sale. If your income falls below the tax threshold, you may save on the taxes due. Another option is to time a capital gain to coincide with a loss. Suppose that you sell property at a loss in one year. If you sell another asset for a profit that year, you can balance the loss against the gain to reduce the overall taxes due. These tactics are not age-related but can help you manage your taxes over time.", "articleSection" : [ "Capital Gains" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2023-10-10T16:29:42+0000", "datePublished" : "2023-10-10T16:29:42+0000", "description" : "There are no remaining age-related capital gains exemptions. However, there are other capital gains exemptions that those over the age of 55 may qualify for. 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