FIRPTA Withholding Calculator
When a foreign person sells US real estate, the buyer must withhold 15% of the sale price and send it to the IRS — before the seller sees a dime of it. This calculator estimates the withholding on your sale, what lands in your pocket at closing, and the gap between withholding and the actual tax you may owe (refundable by filing).
How FIRPTA withholding works
The standard rate is 15% of the amount realized (sale price, broadly). A reduced 10% rate applies only when the sale is $1,000,000 or less AND the buyer will use the property as a residence — both conditions, not either.
Withholding is a deposit, not the tax itself. Your real tax depends on gain: file Form 1040-NR and the excess withholding is refunded. Many sellers over-withhold significantly relative to actual tax.
Special cases: a withholding certificate (Form 8288-B) can reduce or eliminate withholding before closing, and personal residences sold under $300k with a resident buyer are exempt.
Frequently asked questions
I'm a foreigner but live in the US with a visa — does FIRPTA apply?
FIRPTA applies to 'foreign persons' for tax purposes. Resident aliens with a green card or substantial presence generally are NOT foreign persons — withholding shouldn't apply to them.
Can I get the 15% back?
Yes — it's withholding, not a final tax. File Form 1040-NR reporting the actual gain; if actual tax is lower, the difference is refunded (often months later, hence the 8288-B pre-closing option).
Who actually sends the money to the IRS?
The buyer (and their closing agent) are legally responsible. This is why settlement sheets for foreign sellers show the withholding line so prominently.
Related tools
- Rules: IRC §1445 / IRS FIRPTA guidance (15% standard, 10% reduced, $300k residence exception, Form 8288-B). Estimate only — cross-border tax needs a professional.
Last updated: 2026-09-08