It depends. IRS and Virginia allow you to exclude up to $250,000 ($500,000 if married filing jointly) of profit from the sale of a home if you owned and lived in it for two of five years.
You may qualify for a partial exclusion for 18 months if you meet certain requirements, such as a move for work- or health-related reasons.
Does Your Home Qualify for a Partial Exclusion of Gain?
Profit from a home sale is: Sales price - Sales expenses less (Cost + Improvements) = gain/loss. Any home sale exclusion would be further subtracted from that profit.
Any capital gain from your home sale would be added to your other capital gains. The rate is based on your total income.
See What Are the Capital Gains Tax Rates for 2021 vs. 2022? by Kiplinger.
