Could a New Capital Gains Tax Break Encourage More Bucks County Homeowners to Sell?
Could a New Capital Gains Tax Break Encourage More Bucks County Homeowners to Sell?
A proposal in Congress could significantly increase the federal capital gains tax exclusion available to qualifying homeowners when they sell their primary residence. For long-time Bucks County homeowners who have watched their properties appreciate for decades, the issue could influence decisions about selling, downsizing, and putting more homes on the market.
TL;DR
Current federal law generally allows qualifying homeowners to exclude up to $250,000 of gain when single or $500,000 when married and filing jointly.
Those exclusion amounts have remained unchanged since 1997.
The proposed More Homes on the Market Act would increase the limits to $500,000 and $1 million.
Supporters argue the change could encourage some long-time homeowners to sell.
This is proposed legislation, not current law.
Last updated: August 11, 2026
If you bought your Bucks County home 20 or 30 years ago, there's a good chance today's value looks very different from what you originally paid.
For many homeowners, that's wonderful news.
You built equity. Your home appreciated. An investment that was also the place where you lived your life became significantly more valuable.
But eventually another question comes up.
What happens when you sell?
That's becoming a bigger conversation nationally as lawmakers consider changing a federal tax provision that has remained largely frozen while home values have risen dramatically.
And for homeowners in communities like Newtown, Yardley, Doylestown, New Hope, Washington Crossing and Upper Makefield Township, it's a conversation worth following.
What Is the Capital Gains Exclusion When You Sell Your Home?
Under current federal tax rules, qualifying homeowners can generally exclude up to $250,000 of gain from the sale of a primary residence when filing as an individual and up to $500,000 when married and filing jointly.
The important word there is gain.
We're not talking simply about the selling price of your house.
Very broadly, capital gain relates to the difference between your adjusted basis in the property and what you receive when selling it, subject to applicable rules and adjustments.
The tax details can become complicated quickly, which is why homeowners facing substantial appreciation should speak with a qualified tax professional.
But there's a larger real estate issue here.
Those $250,000 and $500,000 exclusion limits date back to 1997.
Think about how much the housing market has changed since then.
Home prices changed.
Household finances changed.
Bucks County changed.
The exclusion limits didn't keep pace.
Why Could This Matter to Bucks County Homeowners?
For someone who purchased a home relatively recently, the existing exclusion might not seem particularly important.
A homeowner who bought decades ago can have a very different situation.
Picture a couple who bought their Bucks County home years ago, raised their family there and stayed long after the kids moved out.
Maybe they purchased when prices were a fraction of today's values.
Now they're thinking about downsizing.
They don't necessarily need four bedrooms anymore. The yard is becoming more work. Perhaps they'd like something smaller, easier to maintain and closer to family.
But their home has appreciated dramatically.
Suddenly the potential tax implications become part of the decision.
That's exactly the type of homeowner supporters of the proposed legislation say may be discouraged from selling under today's rules.
What Is the More Homes on the Market Act?
The More Homes on the Market Act is proposed federal legislation that would increase the amount of gain qualifying homeowners could potentially exclude when selling a principal residence.
Under the proposal, the exclusion would increase:
Filing Status Current Exclusion Proposed Exclusion Single filer $250,000 to $500,000 Married filing jointly $500,000 to $1 million
That's a substantial difference.
The House version, H.R. 1340, was introduced in February 2025. A Senate version, S. 3332, was introduced later in 2025.
The idea behind the legislation isn't simply to give homeowners another tax break.
Supporters believe changing the exclusion could also help address a housing-market problem.
Inventory.
Could Changing the Tax Rules Put More Homes on the Market?
Potentially, although no one should assume a tax change alone would suddenly solve the housing inventory problem.
Homeowners stay put for all kinds of reasons.
Some have very low mortgage rates they don't want to give up.
Some can't find another home they like.
Others simply don't want to move.
But taxes can become another consideration, particularly for people who have accumulated substantial equity over a long period.
The National Association of Realtors has argued that the existing limits can discourage some long-time homeowners from selling.
That creates an interesting chain reaction.
Suppose an older homeowner wants to downsize but decides against selling.
Their larger home doesn't become available to a move-up buyer.
That move-up buyer stays in their current house.
And that house doesn't become available to someone purchasing their first home.
One property that doesn't hit the market can affect more than one potential transaction.
Why Does Housing Inventory Matter in Bucks County?
Anyone who has seriously searched for a home knows that price isn't the only challenge.
You also need something worth buying to actually come onto the market.
That's why inventory matters.
A buyer looking in Newtown may have very specific requirements.
Someone searching around Yardley might want something completely different.
Move farther north toward Washington Crossing, Upper Makefield or New Hope, and lot sizes, architecture, price points and housing styles can change considerably.
More listings create more choices.
More choices can also give homeowners greater confidence that if they sell, they'll have somewhere else to go.
It's one reason the conversation around capital gains and housing inventory deserves attention beyond Washington.
Eventually, national housing policy reaches local streets.
Does This Mean Bucks County Homeowners Should Wait to Sell?
Not necessarily.
This is where homeowners need to be careful.
The More Homes on the Market Act is proposed legislation. It is not the current tax rule.
Waiting to make a major real estate decision because a bill might become law can create its own risks.
Your home's value could change.
Mortgage rates could change.
Inventory could change.
Your personal circumstances could change.
And Congress could modify, delay or never enact the proposal.
A potential future tax change should therefore be one part of a much larger conversation.
If you're already considering selling, I'd start by understanding where you stand today.
What Should Long-Time Bucks County Homeowners Do Before Selling?
Before putting a long-held property on the market, get a clear picture of both the real estate and financial sides of the decision.
Start with these questions:
What could my home realistically sell for today?
What did I originally pay for the property?
What qualifying improvements have I made over the years?
What could my adjusted cost basis be?
Could my estimated gain exceed the available exclusion?
Where would I move after selling?
What would buying or renting my next home cost?
Your Realtor can help with the first question and the broader real estate strategy.
A CPA, tax attorney or other qualified tax professional should advise you about your individual tax situation.
Those roles shouldn't be confused.
As a Realtor, my job isn't to tell a homeowner what they'll owe the IRS.
My job is to help determine what the property could realistically command in today's Bucks County market and help the seller understand the real estate side of the equation.
Could This Particularly Affect Long-Time Bucks County Owners?
It could.
Bucks County has many established communities where homeowners have remained in their properties for decades.
Think about someone who bought in Newtown, Yardley or Doylestown when today's prices would have sounded almost unbelievable.
Or someone who purchased acreage years ago in Upper Makefield or Washington Crossing.
Their appreciation story can look very different from someone who bought three years ago.
That's why I think this issue deserves attention locally.
It isn't about assuming every longtime homeowner has a huge taxable gain.
Many won't.
It's about recognizing that a tax threshold established nearly three decades ago may now be entering the decision-making process for more homeowners.
What Could More Sellers Mean for Bucks County Buyers?
This is the other side of the story.
If changing the exclusion eventually encourages some homeowners to sell, buyers could benefit from additional inventory.
Imagine a longtime homeowner decides it's finally time to downsize.
Their property becomes available to another family.
That family sells its existing home.
Now another buyer has an opportunity.
That's the housing-market domino effect supporters of the legislation hope to encourage.
Whether it would happen at a meaningful scale remains to be seen.
But buyers should pay attention to policies that could influence inventory because inventory directly affects choice and competition.
Is the More Homes on the Market Act Already Law?
No.
This point is important enough to repeat.
The proposed increases to $500,000 for single filers and $1 million for married couples filing jointly are not currently the federal exclusion amounts.
The legislation has been introduced in Congress and has attracted bipartisan support, but homeowners should make decisions based on current law unless and until legislation is enacted.
Real estate headlines move fast.
Tax law requires more care than a headline.
What Does This Mean If You're Thinking About Selling in Bucks County?
You don't need to become a tax expert before calling a Realtor.
But if you've owned your home for a long time and experienced substantial appreciation, it's worth knowing that capital gains may need to be part of your planning.
Start with the value of your property.
Then look at the bigger picture.
What could you sell for?
What would you walk away with?
Where would you go?
What would your next home cost?
And if your estimated gain is significant, what does your tax professional recommend?
Those answers are far more useful than trying to make your decision from a national headline.
Thinking About Selling Your Bucks County Home?
If you own a home in Newtown, Yardley, Doylestown, Langhorne, Upper Makefield Township, Washington Crossing, New Hope, or elsewhere in Bucks County, and you're wondering what it could be worth in today's market, let's start there.
You don't have to decide to sell just because you ask the question.
Sometimes knowing your numbers is exactly what helps you decide what comes next.
Contact Alisia Snyder to discuss your Bucks County home's current market value and your options for making your next move.
About the Author
Alisia Snyder is a Realtor serving buyers and sellers throughout Bucks County, Pennsylvania, including Newtown, Yardley, Doylestown, Langhorne, Upper Makefield Township, Washington Crossing, New Hope and surrounding communities.
Alisia helps clients understand local market conditions and make informed decisions when buying or selling a home.
Author: Alisia Snyder
Last updated: August 11, 2026
Important Tax Disclaimer
This article is provided for general educational and real estate information only and is not tax, financial or legal advice. Tax rules depend on individual circumstances and can change. Homeowners should consult a qualified CPA, tax professional or attorney regarding the tax consequences of selling their property.
