FIRPTA Withholding Calculator
See the withholding a foreign seller's sale may trigger at closing.
What This Calculator Does
Applies FIRPTA rules to a sale price and the buyer's intended use of the property to estimate the withholding amount and rate, and, if you enter your own estimate of the tax owed, the share of that withholding that may come back as a refund.
Who Is This For
Foreign nationals selling US real estate, buyers who need to understand that the withholding obligation applies to them, and agents on either side of a transaction involving a foreign seller.
How It Works
Enter the sale price and indicate whether the buyer will use the property as a residence, then confirm the outcome with a qualified tax professional before closing.
Frequently Asked Questions
What withholding rate applies to a sale?
The rate depends on sale price and the buyer's intended residential use, with different tiers potentially applying; confirm the applicable rate for your specific transaction with a qualified professional.
Who is responsible for withholding?
The buyer is generally treated as the withholding agent, even though a title or closing company typically handles the mechanics; the obligation does not automatically shift to the seller or title company.
Is the withheld amount the seller's actual tax owed?
No — withholding is a deposit against potential tax liability, calculated on the gross sale price rather than on profit, and can exceed the actual tax owed in many cases.
How can a seller recover excess withholding?
A seller generally recovers any excess by filing a US tax return for the year of sale and claiming credit for the amount withheld, which requires a US taxpayer identification number.