What taxes do I pay when I sell a home in Yuma, AZ?

What taxes do I pay when I sell a home in Yuma, AZ?
When you sell a house in Yuma, you may owe federal capital gains tax if you make a profit — but Arizona does not charge a separate state capital gains tax. Some sellers qualify for exemptions that reduce or eliminate what they owe.

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Federal Capital Gains Tax: The Basics

When you sell your home for more than you paid (your cost basis), the IRS may tax the profit as a capital gain.

✅ Short-Term vs. Long-Term:

• If you owned the home for less than a year, gains are taxed as regular income (short-term).

• If you owned it for more than a year, they’re taxed at long-term capital gains rates (typically 0%–20% depending on your total income).

✅ Primary Residence Exclusion:
The IRS lets you exclude up to $250,000 in profit ($500,000 if married filing jointly) if:

• You owned the home for at least 2 of the last 5 years

• You lived in it as your primary residence for at least 2 of those years

• You haven’t claimed the exclusion on another home in the past 2 years

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Do You Pay Arizona State Capital Gains Tax?

Good news: Arizona does not have a separate state capital gains tax. You report your gains on your state income tax return, but there’s no extra rate — it’s treated the same as other income.

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Other Costs to Expect

Aside from capital gains, be prepared for:

• Property taxes up to closing: You’ll pay your share for the year.

• Recording or transfer fees: Arizona doesn’t have a transfer tax, but you may see small county fees on your closing statement.

• Federal tax filing: If you don’t qualify for the full exclusion, you’ll report the gain when you file your federal tax return.

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How Next Level Home Buyers Helps

Selling your home the traditional way means paying agent commissions, repairs, and closing costs — on top of any taxes. When you sell to Next Level Home Buyers:

✅ You pay no commissions or hidden fees
✅ They cover all closing costs
✅ You sell as-is — no repairs or staging needed
✅ You get a fair cash offer and can plan ahead for any tax obligations

“We were worried about taxes and fees eating up our profit. Next Level made it simple — they explained everything and covered the closing costs.” — Rachel & Miguel, Yuma Avenue B & C

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Final Thoughts

You may owe federal capital gains taxes when you sell your home in Yuma — but many sellers qualify for exclusions. Always talk to a tax professional to be sure. If you want to keep more of your proceeds, skip agent fees, and close fast, Next Level Home Buyers can help you sell with fewer surprises.