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Bill

Bill

S 1781

Increases amount of gross income tax exclusion for gains from sales of principle residences.

2026-2027 Regular Session Introduced by Troy Singleton

S 1781 increases the tax exclusion for home sale capital gains, allowing homeowners to exclude more profit from income taxes when selling primary residences.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
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WeVote Research Nonpartisan
Bill Summary · S 1781

Legislative bill overview

S 1781 increases the federal gross income tax exclusion for capital gains from the sale of a primary residence. Currently, federal law allows individuals to exclude up to $250,000 in gains ($500,000 for married couples filing jointly); this bill would raise those thresholds, meaning more homeowners could avoid paying income tax on profits from home sales.

Why is this important

Housing affordability and wealth-building are central economic concerns, particularly in high-cost states like New Jersey where home prices have surged. This tax benefit directly affects how much money homeowners keep when selling their primary residence, potentially making home ownership more financially attractive and helping families build equity without tax penalties on appreciation gains.

Potential points of contention

  • Revenue impact: Increasing the exclusion reduces state/federal tax revenue, raising questions about how this cost is offset or whether it conflicts with other budget priorities
  • Regressive benefit distribution: Higher-value homes and wealthier homeowners disproportionately benefit, while lower-income residents with smaller gains may see minimal advantage
  • Market effects: Larger exclusions could potentially increase demand for expensive properties, potentially driving prices higher rather than improving affordability for first-time buyers

Compiled from official sources — confirm details with the bill’s official record.

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