Tax on the sale of a personal residence?

I have always been interested in the housing market since the bubble in the last decade.  Recently, some reports have house prices in certain areas starting to increase again.  With increased house prices, this brings a question that hasn’t been popular lately.  Is there tax on the sale of a personal residence?

The below video from the IRS explains the federal tax implications and where to get additional information.  Keep in mind that state tax laws may vary regarding the tax on the sale of a personal residence.