Free Tool
FIRPTA Withholding Calculator
Selling U.S. real estate as a foreign person? Estimate how much FIRPTA withholding the buyer must hold back at closing, 15%, 10%, or 0%, based on the sale price and whether the buyer will use the property as a residence.
FIRPTA Withholding Estimator
Foreign seller of U.S. real estate · Estimate only
A reduced or zero rate requires the buyer to sign an affidavit committing to use the property as a residence for at least 50% of the days it is used in each of the first two years.
Withholding rate
15%
Withheld at closing
$75,000
Seller receives
$425,000
Standard 15% rate applies. A reduced rate needs the buyer to use the property as a residence (and, for 10%, a price of $1,000,000 or less).
This is the amount withheld, not the tax you owe. FIRPTA withholding is collected against your eventual U.S. tax on the sale. If it exceeds the actual tax, you can recover the difference, and a withholding certificate (Form 8288-B) filed before closing can often reduce the amount held back in the first place.
Estimate only, for planning purposes. Not tax advice. Rates and conditions per the IRS FIRPTA rules. Your situation may differ.