How Much Do You Keep When You Sell Your House?

This article covers general tax and financial information about home sales. Consult a licensed tax professional or real estate attorney for advice specific to your situation.

Net proceeds are the amount you walk away with after your home sale, once the mortgage payoff, agent commissions, and closing costs are deducted from the sale price. After those deductions, sellers typically keep 60 to 85% of their home’s sale price, the exact share depends on how much you still owe and what you negotiate in commissions.

Two cost ranges appear in most sources, and neither is wrong. 8 to 10% covers what you pay at the closing table: agent commissions and basic seller closing costs. 10 to 15% is the all-in number once you add pre-sale repairs, staging, and moving expenses. That gap is often $10,000 to $20,000 on a typical home, and no other source currently draws that distinction cleanly.

This guide covers the full costs of selling a house at three price points ($300K, $400K, $500K), how to calculate your net proceeds from home sale in seven steps, how capital gains tax home sale rules work under the Section 121 exclusion, and the specific moves that keep more money in your pocket. A home sale proceeds calculator can run your custom figures, this article gives you the framework to understand every line.

How much do you keep when you sell your house?

The net proceeds formula

Net proceeds = Sale price − Mortgage payoff − Agent commissions − Closing costs − Other seller costs

This formula is the foundation of every home sale calculation. Plug in your specific numbers and you get your estimated pre-tax take-home. The result almost always lands between 60% and 85% of the sale price for sellers who still carry a mortgage.

According to Experian cost data on selling a house, sellers commonly pay 7 to 10% at the closing table, with the all-in number running higher once pre-sale work is included.

What sellers typically keep: a breakdown by sale price

The table below shows estimated costs and net proceeds at three home price points. Use it alongside a home sale proceeds calculator to layer in your specific mortgage payoff balance and local closing cost rates.

Cost item	$300,000 home	$400,000 home	$500,000 home
Agent commissions (5, 6%)	$15,000, $18,000	$20,000, $24,000	$25,000, $30,000
Seller closing costs (1, 3%)	$3,000, $9,000	$4,000, $12,000	$5,000, $15,000
Repairs and concessions (est.)	$2,000, $5,000	$2,500, $7,000	$3,000, $9,000
Total costs (est.)	$20,000, $32,000	$26,500, $43,000	$33,000, $54,000
If you owe $0 mortgage	keep $268K, $280K	keep $357K, $374K	keep $446K, $467K

Based on national cost range data, 2026. Verify local commission rates and closing cost conventions before transacting.

A seller with no remaining mortgage and a negotiated lower commission keeps closer to 90%. A seller with a large payoff balance and a full 6% commission keeps closer to 60%. Your home equity is the single biggest variable in that range.

Broader market conditions also shape the sale price you can achieve, and therefore how much you net. Market timing effects on real estate explains how interest rate cycles and economic shifts ripple into what buyers will offer.

What costs reduce your home sale proceeds?

The costs of selling a house fall into four main buckets. Some are fixed by your loan balance or state law. Others, especially commissions, are genuinely negotiable.

Agent commissions: what changed after August 2024

Historically, sellers paid a combined real estate agent commission of 5 to 6%, split between the listing agent (2.5 to 3%) and the buyer’s agent (2.5 to 3%). The NAR settlement 2024, finalized in August 2024, changed that structure.

Under the new rules, buyer agent commissions are negotiated separately between buyers and their own agents. Sellers are no longer automatically responsible for covering the buyer’s side. Per NAR commission research, the national average combined commission ran approximately 5.70% before the settlement, translating to $17,100 on a $300,000 home.

What this means in practice: your listing contract now specifies only what you owe your listing agent. Whether you also cover the buyer agent fee is a negotiation point, not a default. Eliminating or reducing that coverage can save $9,000 to $15,000 on a $300,000 to $500,000 home.

Seller closing costs

Seller closing costs typically run 1 to 3% of the sale price and include:

• Transfer taxes: a state or county tax on the deed transfer (rates range from zero in some states to over 2% in others)
• Title insurance: protects the buyer’s lender against title defects; sellers typically pay for the owner’s policy in most states
• Escrow fees: charged by the escrow or settlement company managing the transaction
• Attorney fees: required at closing in attorney-closing states (roughly a dozen states mandate this)
• Recording fees and miscellaneous administrative charges

Transfer taxes, title insurance conventions, and attorney requirements differ significantly by state. See the state-by-state breakdown below.

Your mortgage payoff

The mortgage payoff is typically the largest single line item in any home sale. It differs from your current balance because it includes accrued interest through the expected closing date.

Request a 10-day payoff quote from your servicer, not a balance statement, before estimating your net proceeds. If you carry a home equity line of credit alongside your primary mortgage, get a separate payoff quote for that account too. Both liens must be cleared at closing before you receive anything.

If the sale price falls short of the total payoff amount, you would need to bring cash to close or negotiate a short sale with your lender.

Repairs, staging, and seller concessions

Pre-sale repairs typically run $2,000 to $10,000 for a home in average condition. Staging adds $1,000 to $3,000. Seller concessions, credits you give the buyer at closing to cover repair items, closing costs, or a rate buydown, run 1 to 2% of the sale price in a buyer’s market, adding $3,000 to $10,000 to your cost column on a $300,000 to $500,000 home.

Seller Closing Costs by State

Transfer taxes, attorney requirements, and title insurance conventions vary by state. Select your state below for a local breakdown of who pays what at closing.

How much does it cost to sell a $300,000 house?

Selling a $300,000 house typically costs between $24,000 and $45,000 in total selling expenses, depending on what you include.

The 8 to 10% at-closing range ($24,000 to $30,000) covers agent commissions and seller closing costs paid at the settlement table. The 10 to 15% all-in range ($30,000 to $45,000) adds pre-sale repairs, staging, and moving expenses. The $6,000 to $15,000 gap between those tiers surprises most sellers, and is the more realistic number to plan around.

Commission costs on a $300,000 home

Agent commissions at 5 to 6% of a $300,000 sale equal $15,000 to $18,000. That one line item is the largest controllable cost for most sellers. Per Bankrate seller costs data by state, closing costs on top of commissions vary widely depending on local transfer tax rates and title insurance conventions.

Closing costs on a $300,000 home

Seller closing costs on a $300,000 home run $3,000 to $9,000 (1 to 3%). States with no or minimal transfer taxes sit at the low end. States like New York, Maryland, and Connecticut, where combined transfer taxes can reach 1.5 to 2% or more, push toward the upper end.

Your net if you owe nothing vs. owe $200,000

The answer to how much money will I keep after selling my house on a $300,000 sale looks very different depending on your mortgage balance:

• You owe $0: After $24,000 to $30,000 in at-closing costs, your net proceeds land at $270,000 to $276,000 (roughly 90 to 92% of the sale price).
• You owe $200,000: Your equity is $100,000. After $24,000 to $30,000 in costs, your net is approximately $70,000 to $76,000 (23 to 25% of the sale price, or 70 to 76% of your equity).

Equity is the dominant variable. Two sellers with the same sale price and the same costs walk away with very different amounts based solely on how much they owe.

How to Calculate Your Net Proceeds from Home Sale

Net proceeds from home sale calculations follow seven steps. Running through all seven before you list prevents the surprise of a lower-than-expected settlement statement.

Worked example: Sale price $400,000. Mortgage payoff $220,000. Commission at 5.5% = $22,000. Seller closing costs = $6,000. Pre-sale repairs = $3,000. Net proceeds = $400,000 − $220,000 − $22,000 − $6,000 − $3,000 = $149,000 (37% of sale price, 68% of your equity after all costs).

Ask your listing agent or escrow officer for a net sheet before you sign a listing agreement. A net sheet lays out all estimated seller costs and your projected proceeds in one place, it’s the clearest pre-listing tool for understanding your actual take-home. Some sellers request net sheets from multiple agents to compare commission structures side by side.

A home sale proceeds calculator can also automate this math. Input your expected sale price, payoff balance, commission rate, and estimated closing costs, and the tool returns your estimated net in seconds. Run it at multiple price points to understand how pricing decisions affect your bottom line.

Does money from selling a house count as income?

The following section covers general tax information about home sales. Consult a licensed tax professional for advice specific to your situation.

Money from selling a house is treated as a capital gain by the IRS, not ordinary income, and most homeowners owe no federal tax on it because of the Section 121 exclusion.

The IRS calculates your gain as the sale price minus your adjusted basis (original purchase price plus the cost of qualifying improvements you made during ownership). If that gain falls below the exclusion limit and you meet the ownership and use test, no federal capital gains tax home sale applies.

Capital gains vs. ordinary income: what the IRS

The distinction affects your tax rate. Ordinary income such as wages is taxed at rates up to 37% for 2026. Long-term capital gains on property held more than one year are taxed at 0%, 15%, or 20% depending on your taxable income. Short-term gains on property held one year or less are taxed as ordinary income at your marginal rate.

For most primary residence sellers, the Section 121 exclusion eliminates the gain entirely. The capital-vs.-ordinary-income question only becomes relevant when the profit is large enough to exceed the exclusion limit.

The Section 121 exclusion: $250,000 and $500,000 limits

The Section 121 exclusion allows eligible homeowners to exclude from federal taxable income:

• $250,000 in capital gain for single filers
• $500,000 in capital gain for married couples filing jointly

Per IRS Publication 523, Selling Your Home, eligibility requires passing the ownership and use test: you must own and live in the home as your primary residence for at least 2 of the 5 years ending on the sale date. The 2 years do not need to be consecutive. You can claim the exclusion once every 2 years.

For a detailed breakdown of how to count those 2 years and what qualifies as “use” under the IRS’s definition, see the 2-of-5-year rule guide.

If the sale is involuntary due to qualifying circumstances, a partial Section 121 exclusion may still apply. Divorce is one IRS-recognized exception. For how that partial exclusion is calculated on a jointly owned home, see divorce sale rules.

When home sale profit IS taxable

Your home sale profit becomes taxable when any of these conditions apply:

• Your capital gain exceeds the $250,000 or $500,000 exclusion limit
• The home was not your primary residence (investment property, vacation home)
• You claimed the Section 121 exclusion on another home within the past 2 years
• You held the property one year or less, making the gain short-term ordinary income

The above is general information, not tax advice. Consult a tax professional for guidance specific to your situation.

Do I pay taxes to the IRS when I sell my house?

Most homeowners who sell their primary residence owe no federal taxes to the IRS because the Section 121 exclusion eliminates the gain. Knowing when a filing is still required protects you from an unexpected IRS notice after closing.

You generally do NOT need to report the sale if:

• Your gain is fully below the exclusion limit ($250,000 single / $500,000 married filing jointly)
• You meet the ownership and use test
• You did not receive Form 1099-S from the title or closing company

You MUST report the sale if:

• You received Form 1099-S (the IRS requires reporting regardless of whether tax is owed)
• Your gain exceeds the exclusion limit
• The property was not your primary residence
• You used the Section 121 exclusion on another home within the past 2 years
• You held the property one year or less

The ownership and use test, explained

To qualify for the full Section 121 exclusion, you must have owned the home AND lived in it as your primary residence for at least 2 of the 5 years immediately before the sale date. The 2 years don’t need to be consecutive, any 24 months within that 5-year lookback window count.

What happens when your gain exceeds the exclusion

Only the amount above the exclusion limit is taxable. That excess is treated as a long-term capital gain (if you owned the property more than one year) and taxed at 0%, 15%, or 20% depending on your total income for the year.

See Kiplinger’s rate table for the current 2026 income thresholds that determine which rate applies. A partial exclusion is also available for sellers who had to move due to unforeseen circumstances, qualifying events under IRS Publication 523 include a job change, health emergency, or qualifying divorce, even if you don’t fully meet the 2-of-5-year test.

Do you need to file anything with the IRS?

If reporting is required, you report the sale on Schedule D and Form 8949 attached to your federal return. Qualifying improvements you made during ownership, a new roof, kitchen remodel, or HVAC replacement, increase your adjusted basis and reduce the taxable gain dollar for dollar. Keep records of those costs.

The above is general information, not tax advice. Consult a tax professional for guidance specific to your situation.

How to keep more money from your home sale

The single largest controllable cost in any home sale is agent commission. Unlike transfer taxes or title insurance, it is negotiable. On a $400,000 home, eliminating a 5.5% combined commission saves $22,000. On a $500,000 home, that number is $27,500.

Negotiate or eliminate agent commissions

Post-NAR settlement 2024, the costs of selling a house through a traditional agent are more negotiable than at any point in the past two decades. Your listing contract specifies only what you owe your listing agent. The buyer agent commission, historically bundled into the seller’s obligation, is now the buyer’s responsibility to negotiate separately.

That said, some sellers still offer to cover a buyer agent fee to attract more buyers in slower markets. Know exactly what your contract says before assuming you’re off the hook for that cost. If you sell to a cash buyer through a direct platform, the real estate agent commission line disappears from your net sheet entirely.

Price your home accurately from the start

Overpriced homes sit longer on the market and accumulate carrying costs of $500 to $1,000 per month in taxes, insurance, and utilities. After price cuts, they often close below what a well-priced home would have achieved on day one.

If your home has already gone through a price reduction without a sale, after a price reduction covers your strategic options, including when to hold, when to cut again, and when a direct offer resolves the situation faster.

Limit seller concessions

Every percentage point of seller concessions is a direct reduction in your net proceeds from home sale. In a seller’s market, you can hold concessions to zero. In a buyer’s market, limiting concessions to 1% instead of 2% saves $3,000 on a $300,000 sale, not a trivial number when added to other cost reductions.

Per TurboTax home sale guidance, seller concessions may also affect your adjusted basis calculation, which matters if your capital gains tax home sale exposure is near the exclusion threshold.

Consider cash buyers to skip listing costs

Cash buyers purchase homes as-is. That eliminates pre-sale repair costs, staging fees, and open house carrying costs. Closings on cash transactions happen in 7 to 30 days, cutting months of carrying costs compared to a traditional listing. When the sale also bypasses a listing agent, the commission line disappears from your net proceeds calculation entirely.

The biggest lever on your net proceeds is agent commission, $15,000 to $30,000 on most homes depending on the sale price. Through iBuyer.com, you receive competing cash offers from vetted buyers without listing on the MLS or paying a listing agent. That commission line disappears from your net sheet. Most sellers close in 7 to 30 days. Submit your address to see what competing cash buyers will offer, and compare it against your estimated traditional net proceeds before you decide.

Frequently Asked Questions