Capital gains on a home sale calculator (2026)
The IRS you pay — or don't — on the gain from selling your home: the inflation-adjustment coefficient, deductible expenses, and the exclusion if you reinvest in a new home of your own.
Renovation work from the last 12 years with an invoice, plus IMT (property transfer tax), stamp duty (Imposto do Selo) and registration fees from the purchase, plus the estate agent’s commission and the energy certificate from the sale.
Reinvesting the net sale proceeds in a new primary residence (habitação própria e permanente) excludes part — or all — of the gain.
The seller’s taxable income (under joint taxation, half of the couple’s), to estimate the tax bracket. Under joint taxation, or if the property has more than one owner, the actual tax may be lower.
Estimated IRS on the gain
€22,155.63
Where this number comes from
| Corrected acquisition valuecoefficient 1,4 | €140,000.00 |
|---|---|
| Gross gain | €105,000.00 |
| Taxable base (50%) | €52,500.00 |
| Additional solidarity rate (taxa adicional de solidariedade) | €62.50 |
| Estimated IRS | €22,155.63 |
Includes the additional solidarity rate (taxa adicional de solidariedade, art. 68-A of the CIRS): 2.5% on the part of taxable income between €80,000 and €250,000, and 5% above €250,000. The simulator adds the whole gain to the income you enter and does not model joint taxation, where the gain is also divided by two, just like the couple’s income (art. 69 of the CIRS). And if the property has more than one owner, each declares only their share of the gain. In those cases, the actual tax may be lower.
Coefficients from Portaria 382/2025/1 (sales in 2025); the 2026 table has not been published yet.
Sales from 2026 to 2029: there is a second exclusion route for any residential property (primary residence or not) — reinvesting the proceeds in property let as housing at a moderate rent, between 24 months before and 36 months after the sale, with minimum letting periods (art. 10.º, n.º 7, of the IRS Code, as amended by Decree-Law 97/2026). This calculator does not compute it: it only counts reinvestment in a new primary residence.
For tax residents in Portugal. The non-resident regime is outside the scope of this calculator.
How the calculation works
The capital gain (mais-valia) on selling a home isn’t just “I sold for more than I paid.” The tax formula adjusts the purchase price for inflation, lets you deduct expenses and renovation work, and taxes only half of what’s left — the other half falls outside IRS (personal income tax) thanks to the mandatory 50% aggregation rule (property capital gains are “Category G” income).
A home bought in 2005 for €100,000 and sold in 2026 for €250,000, with €15,000 of charges (renovation work, the purchase deed (escritura), the sale commission): the corrected value is €100,000 × 1.40 = €140,000. The gain is €250,000 − €140,000 − €15,000 = €95,000. Only half counts for IRS — €47,500 — and, added to a taxable income of €30,000, the estimated tax is around €19,863. If you reinvest half of the net realisation value in another home of your own, the tax drops to around €9,271.
Reinvestment in a new primary residence shelters the gain when the home you sold was your primary residence (habitação própria e permanente) and you buy — or build — another one within the legal window: 24 months before the sale, or up to 36 months after. The exclusion is proportional: reinvest half of the net realisation value and you exclude half of the gain, not the whole gain. Since 2026, and for sales up to 31 December 2029, there is a second route this calculator does not compute: the gain on selling a home, primary residence or not, is also excluded if the proceeds are reinvested in property let as housing at a moderate rent, within the same window and with minimum letting periods (art. 10.º, n.º 7, of the IRS Code, as amended by Decree-Law 97/2026). Properties bought before 1 January 1989 fall completely outside this tax, under the transitional regime of the CIRS (Personal Income Tax Code).
The currency-devaluation coefficient — 1.40 for a purchase made in 2005 — comes from an official table set by ordinance (Portaria 382/2025/1) that adjusts the purchase price for accumulated inflation. The table for 2026 sales is usually only published in November; until then, the calculator uses the latest published table and flags it to you. This tax is only part of the sale’s bottom line — for what’s left in the bank after paying everything, including the costs you had on the original purchase, use the total purchase costs calculator.