Yes, you and your husband will pay taxes on your percentage ownership. While it was kind of your parents to add you to the title, had they not, they could have excluded it all up to $500,000 gain.
We see parents trying to be nice and it backfires. For example, say instead your parents had died. If they owned the whole house, you would inherit the house for fair market value. Instead, you would have had only their share at fair price and the rest as their basis in the house when they gave it to you. (It's lower of fmv or basis at time of gift, I am just assuming the house went up in value).
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