A system for background image subtraction includes a computing device coupled with a 3D video camera, a processor of the device programmed to receive a video feed from the camera containing images of one or more subject that include depth information. The processor, for an image: segments pixels and corresponding depth information into three different regions including foreground (FG), background (BG), and unclear (UC); categorizes UC pixels as FG or BG using a function that considers the color and background history (BGH) information associated with the UC pixels and the color and BGH information associated with pixels near the UC pixels; examines the pixels marked as FG and applies temporal and spatial filters to smooth boundaries of the FG regions; constructs a new image by overlaying the FG regions on top of a new background; displays a video feed of the new image in a display device; and continually maintains the BGH.