Map Shows States Where Homeowners Benefit Most from Capital Gains Tax Plan

Eliminating the federal capital gains tax on home sales would benefit homeowners in states with high home price appreciation, such as California, Hawaii, Massachusetts, Washington, and New Jersey. Many homeowners now exceed the $250,000 exemption due to rising home values, especially after the pandemic. While this could encourage more home sales, experts warn it may worsen housing affordability and inequality without addressing supply shortages.