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Federal Recapture Tax


The Federal Recapture Tax is a one-time federal tax on income that becomes owed when you sell a home that has appreciated and your eligibility changes for a federal subsidy you’ve already received. Our calculator can help you determine if you will owe the tax.

Understanding the Impact of the Federal Recapture Tax

  • What Is the Recapture Tax?

    Recapture tax requires some homebuyers to repay the government a portion of their gain upon sale of the home if they financed their home with a Mortgage Credit Certificate (MCC).

  • What to Consider

    You could owe a Recapture Tax if you received a Virginia Housing Mortgage Credit Certificate (MCC), then sell your home in less than nine years, the home appreciates and your income increases enough during that time so you exceed the allowable limits for the tax year in which you sell your home.

    That’s because the MCC program is a federal subsidy designed to assist people with low-to-moderate incomes, to help them afford their first home.

  • How to Plan Ahead

    Learn about the Federal Recapture Tax and how substantial increases in your income could affect your income tax liability.

Calculation Criteria

>The number of occupants has to be between 1 and 20

>The borrower income has to be between 1.00 than 1,000,000.00

Calculator Results

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Years Your Projected Income
Years Your Projected Income