Capital Gains Tax

Most North Carolina homeowners who sell their primary residence owe no capital gains tax at all. The federal Section 121 exclusion shelters up to $250,000 of profit for single filers and up to $500,000 for married couples filing jointly. If you qualify and your gain stays within those limits, neither the federal government nor North Carolina takes a share. But if you bought your Triangle home ten or fifteen years ago, your equity may have grown large enough that the math is worth examining. In NC, any gain above the exclusion is taxed at the state’s 3.99% flat rate plus federal capital gains tax. Running your numbers before you list takes an hour and saves surprises at closing.