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Quick answer — Illinois home sale capital gains
Gain = sale price − selling costs − basis. Qualified main homes exclude up to $250k (single) / $500k (married) federally, then federal 0/15/20% LTCG plus 3.8% NIIT when income is high. Illinois taxes remaining taxable gain as ordinary income (4.95% flat (state) in this tool). Demo: $650,000 sale → $71,000 taxable → $14,165 total tax ($10,650 federal + $3,515 IL).
Free illinois capital gains tax calculator for home, condo, and rental sales — federal brackets, Section 121, depreciation recapture, and a IL planning line locked for Illinois.
Last updated October 9, 2026 · Not tax advice · All-state hub
Educational estimates for 2026 planning. Confirm withholding, residency, and bracket placement with a CPA or enrolled agent before closing.
Plus your buying closing costs
Additions, roof, remodels
6.0% of price ·
More than 1 = long-term
Of the last 5 years
After deductions, without the sale
State: Illinois — 4.95% flat (state)
Only for the cash-to-you figure — it does not change the tax
Estimated tax on this sale
$14,165
4.4% of your $321,000 gain · federal $10,650 · state $3,515
Taxable gain
$71,000
You keep after tax
$596,836
| Sale price − selling costs | $611,000 |
| Adjusted basis | −$290,000 |
| Capital gain (long-term, 12 years) | $321,000 |
| Section 121 exclusion | −$250,000 |
| Taxable gain | $71,000 |
| Long-term gain: $71,000 × 15% | $10,650 |
| State tax: $71,000 × 4.95% | $3,515 |
| Total tax | $14,165 |
Where the $650,000 sale price goes
What this means for you
Estimate for tax year 2026. MAGI for the NIIT is approximated as taxable income + standard deduction + taxable gain. State tax uses a flat planning rate; city taxes (e.g. NYC) are not included. Not tax advice.
Computed with 4.95% flat (state) on federal taxable gain. Selling costs ~6% where noted in presets.
| Scenario | Gain | Taxable | Federal | IL | Total |
|---|---|---|---|---|---|
Single, main home, 12 yrs Single filer sells a main home bought for $250,000 (plus $40,000 of improvements) for $650,000 after 12 years, with $85,000 of other taxable income. | $321,000 | $71,000 | $10,650 | $3,515 | $14,165 |
Married, main home Married couple sells their home of 15 years for $1,200,000; they paid $420,000 and spent $80,000 on improvements; $150,000 of other taxable income. | $634,000 | $134,000 | $22,616 | $6,633 | $29,249 |
Rental with depreciation Married couple sells a rental bought for $300,000 for $450,000 after 8 years; $80,000 of depreciation was claimed; $120,000 of other taxable income. | $183,000 | $183,000 | $36,288 | $9,059 | $45,346 |
Tax is on gain, not sale price. Illinois uses a flat individual income tax rate that also applies to capital gains — there is no special lower state LTCG rate.
1. Amount realized
Sale price − selling expenses (commission, title, transfer tax, legal)
2. Adjusted basis
Purchase price + closing costs + improvements − depreciation
3. Gain
Amount realized − adjusted basis
4. Taxable gain
Gain − Section 121 exclusion ($250k / $500k, never covering depreciation)
5. Federal tax
Stack on taxable income: depreciation at ordinary rates ≤ 25%, then 0/15/20% (or ordinary rates if held ≤ 1 year)
6. NIIT + state
3.8% × lesser of taxable gain or MAGI over threshold, plus state rate × taxable gain
Illinois capital gains snapshot
Illinois uses a flat individual income tax rate that also applies to capital gains — there is no special lower state LTCG rate.
Planning estimate applies 4.95% to federal taxable gain after the exclusion. Local taxes are not included.
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