FIRPTA Withholding Calculator
See how much of a foreign seller's proceeds is withheld at closing, and which rate applies.
What This Calculator Does
Applies the FIRPTA rules to your sale price and the buyer's intended use of the property to show the withholding amount and the rate behind it. It also shows what the seller nets at the table before any refund, which is the number that surprises people most.
Who Is This For
Foreign nationals selling US real estate, buyers who need to understand that the obligation lands on them, and agents on either side of an international transaction in Miami who want this number settled before closing week.
How It Works
Enter the sale price and indicate whether the buyer will use the property as a residence. The calculator applies the correct rate and displays the withholding. Confirm the outcome with a US tax professional before the closing statement is finalized.
Frequently Asked Questions
What rate applies to my sale?
The default is 15% of the gross sale price. If the price is between $300,001 and $1,000,000 and the buyer will use the property as a residence, the rate drops to 10%. If the price is $300,000 or less and the buyer signs an affidavit committing to use it as a residence, withholding is zero.
Who is responsible for withholding?
The buyer is the withholding agent — not the seller and not the title company, even though title usually handles the mechanics. If the amount is not withheld and remitted, the IRS can pursue the buyer for it plus penalties and interest. This is why buyers in international deals should never treat FIRPTA as the other side's problem.
Is the withholding the actual tax?
No. It is a deposit against the seller's US tax liability on the gain, calculated on the gross price rather than on profit. When the gain is small — or when the sale is at a loss — the withholding routinely exceeds the tax owed, sometimes by a wide margin.
How do I get the excess back?
By filing a US tax return for the year of the sale and claiming credit for the amount withheld. The seller needs a US taxpayer identification number to do it, and obtaining one takes time, so start the process well before closing rather than after.
Can I reduce the withholding up front?
Yes, by applying to the IRS on Form 8288-B for a withholding certificate based on the actual expected tax. Plan on at least 90 days for processing. Filed in time, the funds are generally held pending the IRS response instead of being remitted; filed late, the deposit goes in and you wait for the refund.
Does the residence rate need a written statement?
Yes. The reduced and zero rates depend on the buyer's declaration that the property will be used as a residence for the required period, and that affidavit belongs in the closing file. A verbal understanding will not protect the buyer if the IRS asks later.