Boomers Selling Longtime Homes Would Get Tax Holiday on Their Profits Under New Bill

June 9, 2026 - 02:19

A new bill in Congress aims to give older Americans a tax break when they sell the homes they have lived in for decades. Representative Nicole Malliotakis introduced the "Nest Egg Protection Act," which would raise the capital gains tax exclusion for homeowners over the age of 65. Currently, single sellers can exclude up to $250,000 in profit from their taxable income, and married couples can exclude up to $500,000. The proposed legislation, designated as H.R. 9064, would significantly increase those limits for seniors.

The idea behind the bill is to help older homeowners who have watched their property values soar over the years. Many retirees find themselves facing a large tax bill when they finally decide to downsize or move to a different area. The current exclusion amounts, which have not been adjusted for inflation in decades, often fail to cover the full profit from a home bought thirty or forty years ago. Supporters of the bill argue that this tax burden can eat into a senior's retirement savings, making it harder to afford a new home or cover living expenses. The proposal is seen as a way to give older Americans more financial flexibility without forcing them to stay in houses that no longer suit their needs.