If you don't meet the two-out-of-five-years requirement for the home sale exclusion, you'll pay capital gains taxes on the difference between the sale price and your basis. If you do meet the requirements for the exclusion, you'll pay capital gains taxes on capital gains that exceed the exclusion amount. The capital gains tax rate on the gain on sale of a home you've owned for more than a year can range from 0% to 20%, but most taxpayers pay 15% based on their taxable income. If you've owned the home for one year or less, you pay ordinary income tax rates that range up to 37%.