Do I Have to Pay Tax When I Sell My Home?

Do I Have to Pay Tax When I Sell My Home?

If you’re selling your home in Australia, you might be wondering: “Will I have to pay tax on the money I make?”
Good news — in many cases, you don’t have to pay any tax at all. That’s because of something called the main residence exemption.

You Don’t Pay Tax If:

1. You lived in the home the whole time you, your partner, and kids.
2. You didn’t rent it out or run a business from it no income from the property.
3. The land is 2 hectares or less most regular homes are fine.

If all three apply, you won’t pay Capital Gains Tax (CGT) when you sell. That means you keep all the profit.
What If You Rented It or Moved Out?

If you didn’t meet all the rules — maybe you rented it for a while or moved out — you might still get a partial exemption. That means some of the profit is tax-free.

What Counts as Your “Main Home”?

Your home is your main residence if:

• You live there
• Your stuff is there
• Your mail goes there
• You’re enrolled to vote from that address
• Gas and electricity are connected

Even short stays can count but vacant land doesn’t. You must have lived in a house, unit, or other dwelling on the land.

What Is a Dwelling?
Includes:

• House, cottage, apartment, flat
• Strata title unit, retirement village unit
• Caravan, houseboat, mobile home

What If You’re a Foreign Resident?
If you’re a foreign resident when you sell the home, you can’t claim the exemption even if you lived there before.

Final Tip
Selling your home is a big deal. If you’re not sure about the tax side, talk to a tax advisor. We can help you figure it out and make sure you don’t pay more than you need to.