In a bold new legislative push that has energized conservatives and delighted American homeowners, rising Republican star and Georgia Congresswoman Madison Rivers introduced the “No Tax on Home Sales Act” on July 10, 2025.
The bill aims to eliminate federal capital gains taxes on the sale of primary residences—an issue that has long hovered beneath the radar of national politics but now finds itself at the center of the GOP’s pro-growth, pro-family economic agenda.
The proposed legislation would overturn decades-old tax law that currently allows the federal government to tax profits exceeding $250,000 for single filers or $500,000 for married couples when they sell their main home.
While many Americans don’t hit that cap, soaring property values across the country—driven by inflation, urban sprawl, and limited housing supply—have pushed thousands of homeowners into taxable territory, even in modest markets.
“This is about fairness. This is about freedom. And this is about fighting for the American dream,” Rep. Rivers said during a press conference on Capitol Hill. “The government shouldn’t punish you for building wealth through your own home.”
The initiative arrives as the national average home price sits at a record-high $440,910 in 2025, according to Redfin and Zillow. With real estate markets hot in nearly every corner of the country—from Atlanta to Phoenix to the outskirts of Columbus, Ohio—middle-class homeowners increasingly find themselves facing surprise tax bills simply for selling the house they’ve lived in for decades.
The current framework for taxing home sale profits stems from the Taxpayer Relief Act of 1997, which introduced the $250,000/$500,000 exclusion thresholds to provide relief to families selling their primary residences.
At the time, the median home price in the U.S. was about $145,800. Fast forward to 2025, and the average home costs more than three times that amount—yet the capital gains exclusion has never been adjusted for inflation.
Under current law, a married couple who bought their home in 2000 for $250,000 and sells it in 2025 for $800,000—a scenario that’s no longer rare—would owe capital gains taxes on $50,000 of their profits. At the standard 15% long-term capital gains tax rate, that’s $7,500 straight to the IRS.
“Punishing success is not the American way,” Rep. Rivers said. “People work hard, raise their families, invest in their homes, and then they get taxed just for moving or downsizing. It’s absurd.”
The No Tax on Home Sales Act would eliminate all capital gains taxes on profits from the sale of primary residences—regardless of profit size. Unlike previous reforms that simply increased the exclusion thresholds, Rivers’ bill proposes zero tax on such sales, effectively treating all proceeds from the sale of one’s home as fully exempt income.
The bill includes several key provisions:
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Applies only to primary residences (not vacation homes or investment properties).
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Homeowners must have lived in the home for at least two of the last five years, mirroring current eligibility requirements.
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No cap on profit: Whether a homeowner makes $100,000 or $1 million, no federal tax would be assessed.
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Applies retroactively to all sales occurring on or after January 1, 2025.
Supporters say this would make it easier for retirees to downsize, families to relocate for better jobs or schools, and first-time buyers to enter the market without fear of long-term tax consequences.
Former President Donald Trump quickly threw his weight behind the bill, calling it “a beautiful piece of legislation that puts America’s homeowners first.” In a Truth Social post just hours after the bill was introduced, Trump wrote:
“The great people of this country should never be punished for investing in their homes — their American Dream! We built the greatest economy once, and we’re going to do it again! Full support to Rep. Rivers and her brilliant new bill. MAKE HOMEOWNERSHIP GREAT AGAIN! 🫡🇺🇸”
Trump’s signature America First messaging aligns perfectly with the spirit of the proposal, which seeks to decentralize financial control away from Washington and empower families on Main Street.
The move also offers another sharp contrast between GOP-led economic policies and what Republicans see as the tax-heavy, bureaucratic tendencies of the Biden (now Harris) administration.
“This is a pro-family, pro-growth, and anti-tax bill. That’s what MAGA is all about,” said Rep. Byron Donalds (R-FL), a co-sponsor of the bill.
Democrats wasted no time attacking the proposal, calling it a “handout to millionaires.” Senator Elizabeth Warren (D-MA) condemned the bill as “an irresponsible erosion of the tax base that rewards wealth-hoarding while leaving working people behind.”
But defenders of the bill push back strongly on that characterization. According to a 2024 IRS report, more than 35% of homeowners who sold primary residences in 2023 reported profits that exceeded the current exclusion limits.
This number is double what it was just ten years ago. And the majority of those people were not millionaires—they were middle-class families in metro areas experiencing rapid price growth.
“Your average family in Austin or Denver is now facing taxes simply for selling their home and moving to a better school district,” said economist Dr. Paige Minter from the Center for Market Policy. “This bill actually corrects a distortion in the tax code that disproportionately hits people who stay in their homes for decades.”
Dr. Minter also noted that the bill could unlock mobility in a tight housing market. “Many Baby Boomers are sitting on enormous gains but are afraid to sell because of the tax implications. If those homes go back on the market, it could actually improve inventory and lower prices for first-time buyers.”
The introduction of the No Tax on Home Sales Act is widely seen as a savvy political move ahead of the 2026 midterms, where economic policy is expected to be a top-tier issue.
With inflation still biting at everyday expenses and homeownership increasingly out of reach for younger Americans, Republicans are seizing the opportunity to position themselves as the party of economic opportunity and family-first prosperity.
“The Democrats want to regulate your car, your stove, your speech—and now they want to tax your home,” Rep. Rivers said. “This bill is the line in the sand.”
House leadership has already signaled support for fast-tracking the bill. Speaker Mike Johnson (R-LA) called it “a critical step to restore the American Dream and reward hard work.”
While it may face hurdles in the Democrat-controlled Senate, Republican strategists believe the proposal puts Democrats in an awkward spot: oppose the bill and risk appearing anti-homeowner, or support it and admit that Trump-era tax philosophy is still politically potent.
Early polling data shows overwhelming public support for the measure. A Trafalgar Group survey released two days after the bill’s announcement found:
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71% of Republicans support eliminating taxes on home sale profits.
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58% of Independents support the bill.
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Even 42% of Democrats expressed approval, especially among those over 50.
“This is a winning issue,” said pollster David Evans. “It speaks to the middle class. It speaks to retirees. And it speaks to younger people who hope to one day sell a home and build their future.”
With Trump’s blessing and GOP backing, the No Tax on Home Sales Act is expected to pass the House with minimal resistance. The real battle lies in the Senate, where Majority Leader Chuck Schumer has not yet commented publicly on the bill.
If it stalls there, House Republicans may tie the legislation to broader tax reform or the upcoming debt ceiling negotiations to force action. Trump-aligned PACs are already running digital ads praising the bill in battleground districts, and grassroots conservative influencers have begun pushing the message: “Your home is your freedom — don’t let the IRS take it.”
In the words of Rep. Rivers: “This bill is more than tax reform. It’s a declaration of independence for the American homeowner.”
And in a time when Washington is more divided than ever, one thing is clear: the fight over whether the government deserves a cut of your home sale is about to become one of the most politically charged debates of 2025.
