For sellers · Educational · Not tax advice

FIRPTA withholding calculator: what will you actually walk away with?

In short: when a foreign owner sells U.S. property, the buyer must withhold 15% of the GROSS sale price for the IRS — 10% or even 0% if the buyer will live there and the price is low enough — and some states (Hawaii, California) withhold more on top. Enter your expected sale price, payoff and selling costs, and this calculator estimates the withholding, flags the Form 8288-B reduction route, and shows your estimated net proceeds at closing. Built for foreign nationals planning the exit side of a U.S. investment.

Reviewed by America Mortgages Closing DeskLast updated 6 July 2026

Your sale

Sale price (amount realized)

Property state (optional)

We estimate state withholding only for statutory regimes we're sure of (HI, CA).

Mortgage payoff (optional)

Selling costs (optional)

Agent commission, title, escrow — as % of price.

Buyer will use the property as a residenceWith a signed residence-intent affidavit: 0% up to $300,000, 10% up to $1,000,000 (boundaries inclusive).

Enter your expected sale price

Estimated FIRPTA withholding at closing — and your net proceeds — appear instantly. Figures stay in your browser.

How this calculator works

Withholding = amount realized × rate (15% / 10% / 0%) + state overlay

The federal rate is selected by two facts: the amount realized (generally the gross sales price) and whether the buyer signs a residence-intent affidavit. No affidavit → 15% regardless of price. With the affidavit: up to $300,000 → 0%; over that and up to $1,000,000 → 10%. Both boundaries are inclusive, and withholding always applies to the gross amount — not your gain and not your equity.

State overlays are added only where the statute is unambiguous — Hawaii's HARPTA at 7.25% and California's 3.33% default method. For any other state the tool shows an advisory note rather than guessing. Net proceeds at closing = amount realized − mortgage payoff − selling costs − total withholding: the number that actually reaches your account before any 8288-B refund. The whole page is educational — treaty positions, entity structures and state specifics belong with a qualified international tax advisor.

Worked example

A foreign investor sells a California rental for $750,000 to a buyer who will NOT occupy it as a residence, with a $400,000 mortgage payoff and 6% selling costs.

Example inputs

Sale price (amount realized): $750,000
Buyer residence intent: No → 15% default tier
State: California (3.33% overlay)
Mortgage payoff: $400,000
Selling costs: 6% ($45,000)

Computed results

Federal FIRPTA (15%): $112,500.00
California withholding (3.33%): $24,975.00
Total withheld at closing: $137,475.00
Selling costs: $45,000.00
Estimated net at closing: $167,525.00

Without a residence affidavit the full 15% federal rate applies to the gross price — $112,500.00 — and California adds $24,975.00 at 3.33%, for $137,475.00 withheld at closing. After the $400,000 payoff and $45,000.00 of selling costs, the seller nets an estimated $167,525.00 at the table — with any excess withholding recoverable via a Form 8288-B certificate filed before closing, or a refund on the U.S. tax return.

Example figures are fixed sample numbers computed by the same engine that powers the calculator above — illustrative only, not a quote.

FAQ

FIRPTA questions, answered

What is FIRPTA, in one paragraph?

The Foreign Investment in Real Property Tax Act requires the BUYER (via the closing agent) to withhold a slice of the gross sale price — 15% by default — whenever a foreign person sells U.S. real estate, and send it to the IRS as a prepayment of the seller's capital-gains tax. It is not an extra tax: it's withholding against tax you may owe, reconciled when you file a U.S. return.

When does the 10% or 0% rate apply instead of 15%?

Both concessions require the buyer to sign an affidavit that they will use the property as a residence. Then: amount realized of $300,000 or less → 0% withholding; over $300,000 up to $1,000,000 → 10%. Both boundaries are inclusive, and both depend on the buyer's intent — a seller cannot elect them unilaterally.

Is FIRPTA charged on my profit or the whole sale price?

The whole amount realized — generally the gross sales price — not your gain. That's why the withholding often far exceeds the actual tax: on a $750,000 sale with a modest gain, 15% withholding is $112,500 even if the eventual tax bill is a fraction of that. The overpayment comes back via Form 8288-B before closing or a refund on your U.S. tax return.

What is Form 8288-B and when should I file it?

It's an application for a withholding certificate asking the IRS to cap withholding at your actual expected tax instead of the statutory percentage. It must be filed BEFORE closing; the closing agent then holds the funds in escrow until the IRS responds (typically ~90 days) rather than remitting them. For sellers with small gains it routinely rescues five-figure sums of liquidity — ask your tax advisor early, not at the closing table.

Do states add their own withholding on top of FIRPTA?

Several do. The two unambiguous statutory regimes this calculator models are Hawaii's HARPTA (7.25% of the amount realized) and California's 3.33% default real-estate withholding. Other states have their own nonresident rules with different mechanics — for those the tool shows an advisory note instead of inventing a number. Always confirm with your closing agent.

Does FIRPTA apply if I sell at a loss, or to U.S. expats?

Selling at a loss doesn't automatically remove withholding — it applies to the gross price unless you obtain a withholding certificate (8288-B) or an exemption applies. U.S. citizens and green-card holders are NOT foreign persons for FIRPTA, so expats selling U.S. property skip it entirely (state rules may still apply). Entity ownership, treaties and installment sales all change the analysis — professional advice is essential.

Keep going: related calculators & guides

Foreign-National Affordability

How much US property a foreign national can borrow for, via three non-QM paths: DSCR back-solve from expected rent, foreign-income qualifying (DTI cap), or asset-depletion (assets ÷ 60/84/120 months).

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Mortgage Payment (PITI) + Closing Costs

All-in monthly payment (principal, interest, taxes, insurance, HOA) plus an indicative closing-cost and cash-to-close band, with foreign-buyer line items (remote notarization, LLC setup, international wires)..

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Refinance U.S. Property

Sometimes a cash-out refinance beats selling — release equity without triggering FIRPTA.

U.S. tax filing for non-residents

We introduce you to an independent cross-border accounting firm for 8288-B applications, treaty positions and U.S. filings.

Important information

Illustrative and educational only. Results are indicative estimates, not a quote, an offer of credit, or a commitment to lend.
Not tax or legal advice. FIRPTA withholding depends on your facts, tax-treaty positions and state rules — consult a qualified international tax advisor before relying on any figure here.

America Mortgages, Inc. — NMLS 2810389 (America Mortgages Nationwide). Methodology last reviewed 6 July 2026. This tool never quotes a rate: every interest and FX rate is entered by you, and every output is an indicative estimate, not an offer or commitment to lend.