Morgan Hill Home Sale Calculator: What You Net at Closing

Selling your Morgan Hill home in 2026? Before you list, you need to know what you'll actually net after agent commission, transfer tax, escrow, capital gains tax, and mortgage payoff. For long-time owners with big appreciation, the gap between sale price and net can be $200K to $400K. The biggest blind spot for most sellers: capital gains tax that exceeds the Section 121 exclusion.

Use our free Morgan Hill Home Sale Calculator for a 60-second estimate tailored to your situation.

What comes out of a Morgan Hill sale

On a typical $1.5M Morgan Hill sale in 2026, the closing-statement deductions look like this:

Agent commission: 5 to 5.5% total typically (2.5 to 3% to listing agent, 2.5% to buyer's agent post-NAR settlement) = $75,000 to $82,500
California documentary transfer tax: $1.10 per $1,000 of sale price = $1,650 (Morgan Hill does not add a city transfer tax)
Escrow + title + NHD report + home warranty: $4,000 to $7,000 typical
Mortgage payoff: whatever you still owe
Federal + California capital gains tax: potentially $40K to $150K+ depending on your basis and filing status

The Section 121 exclusion (and where it stops helping)

If you owned and lived in the home for 2 of the last 5 years as your primary residence, you can exclude:

$500,000 of capital gain if married filing jointly
$250,000 if single or head of household

Anything above that is taxable. Federal long-term capital gains is 15% for most Morgan Hill sellers (20% for the highest bracket). California treats capital gains as ordinary income, with most sellers landing at 9.3%. Combined effective rate: about 24.3% on the taxable portion.

For long-time Morgan Hill owners (purchased pre-2005), the $500K exclusion often gets blown through. A 1998 purchase at $375K selling at $1.85M generates $1.275M of realized gain. Even married filing jointly, $775K of that is taxable, costing about $188K in combined federal + CA capital gains tax.

Things that reduce your taxable gain

Major improvements raise your cost basis dollar-for-dollar, reducing your taxable gain:

Kitchen and bathroom remodels (with receipts)
Additions (bedroom, ADU, extension)
Roof and HVAC replacement
Solar panel installation
Pool construction
Major landscaping installation

Routine repairs (painting, minor plumbing, appliance replacement) don't count. The Calculator lets you enter your improvements and adjusts your cost basis automatically.

Net to seller, in plain English

The Morgan Hill Home Sale Calculator walks through:

Sale price minus selling expenses (commission, transfer tax, escrow, misc) = net sale price
Net sale price minus your adjusted cost basis (purchase + improvements) = realized gain
Realized gain minus Section 121 exclusion ($500K MFJ / $250K single) = taxable gain
Taxable gain x combined federal + CA cap gains rate = tax owed
Sale price minus selling expenses minus mortgage payoff minus tax = net to you

If your taxable gain is over $300K

If our calculator estimates your taxable gain above $300K, talk to a CPA before you list. Common moves:

Time the sale to a low-income year (retire first, sell in the year after to drop your CA bracket)
Installment sale (spread the gain over multiple tax years)
Qualified Opportunity Zone reinvestment (defer the gain into a QOZ fund)

If you select "actively listing" or "within 3 months" timeline on the calculator, we can connect you with a local CPA + listing agent team for a free 45-minute pre-list call.

Run your numbers

Plug your sale into the Morgan Hill Home Sale Calculator. Enter your expected sale price, mortgage balance, purchase price, improvements, and filing status. You'll get a full breakdown of net proceeds in 60 seconds.

Related tools

Morgan Hill Home Value Estimator (see what your home is worth before you list)
Property Tax + Prop 19 Calculator (over-55 base transfer if you're buying again)
ADU Cost Calculator (build vs sell decision)

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