Do I pay capital gains tax when I downsize on Meggett?

Capital gains tax on a Meggett downsizing sale depends on how much the home has appreciated since purchase and how the federal exclusion for a primary residence applies to your specific ownership history. Selling a long-held home can still trigger a taxable gain even after that exclusion. An accountant should run the actual numbers from your purchase price and improvements before you list, so there are no surprises after closing.