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HR 7131
Introduced Re-checks Congress.gov for new actions and updates the bill's status, and fills in any sponsors, committees, or related bills that are missing. It does not re-pull sponsors/cosponsors/committees/related — those rarely change — and it skips all work if nothing has changed upstream, so it's cheap to click.

Middle Class Home Tax Elimination Act

To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

Introduced Jan 16, 2026

Latest action (Jan 16, 2026) Referred to the House Committee on Ways and Means.

Referred to
Ways and Means Committee
Policy area
Taxation
Issues
Economy & TaxesHousing

Summary

The bill amends the Internal Revenue Code to eliminate the current dollar limitations on the exclusion of capital gains from the sale of a principal residence. Currently, homeowners can exclude up to $250,000 in gains if filing singly or $500,000 if filing jointly; the bill would remove these caps entirely. The bill makes conforming amendments to related provisions of the tax code to implement this change. The changes would apply to home sales and exchanges occurring after the bill's enactment date.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)

Actions (2)
  1. Jan 16, 2026 Referred to the House Committee on Ways and Means. · house
  2. Jan 16, 2026 Introduced in House

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

  • HR 4327 — No Tax on Home Sales Act · Introduced Jan 21, 2026 · Cong. 119 83%
  • S 3332 — More Homes on the Market Act · Introduced Dec 3, 2025 · Cong. 119 80%
  • HR 7034 — To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes. · Introduced Jan 13, 2026 · Cong. 119 80%
  • HR 7400 — Making Homeownership Affordable Again Act · Introduced Feb 5, 2026 · Cong. 119 80%
  • HR 7349 — Time to Heal Act · Introduced Feb 4, 2026 · Cong. 119 70%
  • HR 4352 — HOMES Act · Introduced Jul 10, 2025 · Cong. 119 70%

Full text

IN THE HOUSE OF REPRESENTATIVES

January 16, 2026

Mr. Fitzgerald introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Middle Class Home Tax Elimination Act”.

SEC. 2. ELIMINATION OF DOLLAR LIMITATIONS ON EXCLUSION OF GAIN FROM SALES OF PRINCIPAL RESIDENCES.

(a) In General.—Section 121(b) of the Internal Revenue Code of 1986 is amended—

(1) by striking paragraphs (1), (2), and (4), and

(2) by redesignating paragraphs (3) and (5) as paragraphs

(1) and (2), respectively.

(b) Conforming Amendments.—Section 121(c) of such Code is amended—

(1) in paragraph (1), by striking “, and subsection

(b)(3)” and all that follows through “2 years” and inserting “, and subsection (b)(1), shall not apply”, and

(2) in paragraph (2)(A)(ii), by striking “subsection

(b)(3)” and inserting “subsection (b)(1)”.

(c) Effective Date.—The amendments made by this section shall apply to sales and exchanges after the date of the enactment of this Act. <all>

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