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You will pay taxes on a home sale on amounts of gain in excess of the excludable amount. This type of gain will be taxed at the capital gains tax rate. If youâve owned the home less than one year, any gain over the excludable amount will be taxed at a rate that will be the same as your ordinary income tax rate.
1. You donât pay Capital Gains Tax when you sell (or â dispose of â) your home if all of the following apply: 1  you have one home and youâve lived in it as your main home for all the time youâve owned it. 2  you havenât let part of it out-this doesnât include having a single lodger.