"Equity" is not the same as capital gain. For example, you buy a house for $100,000 and make a down payment of $20,000. 3 years later, the home is worth $150,000. Your equity is $70,000, but your capital gain is only $50,000.
The net capital gain is reduced by expenses of sale (real estate commission etc,).
If there is still any gain, after the home sale exclusion, it will be partially taxed at 0%, 15%, 20% or 23.8%, depending on your other income. https://www.thebalance.com/what-is-the-capital-gains-tax-3305824
