What is the FIRPTA withholding rate?

15% of the gross sales price in most cases. Reduced to 10% if price is $300,001–$1,000,000 and buyer uses as primary residence; 0% if price is $300,000 or less and buyer uses as primary residence.

Who must withhold and remit FIRPTA?

The buyer (transferee) is responsible for withholding and remitting to the IRS using Form 8288 within 20 days of closing. Failure to withhold makes the buyer liable for the tax.

Can FIRPTA withholding be reduced or eliminated?

Yes. A foreign seller can apply for a withholding certificate (Form 8288-B) if actual tax is less than 15%. The IRS may reduce withholding to the estimated actual tax liability, which can take 90 days to process.

FIRPTA Withholding Calculator

Calculate FIRPTA withholding on sale of US real property by a foreign person. Standard rate: 15% of sales price. Reduced to 0% if buyer uses as primary residence and price is $300,000 or less.

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Annual Rate (%)

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate FIRPTA withholding on sale of US real property by a foreign person. Standard rate: 15% of sales price. Reduced to 0% if buyer uses as primary residence and price is $300,000 or less. Use the firpta withholding result to inform your calculation.

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Frequently Asked Questions

What is the FIRPTA withholding rate?

Who must withhold and remit FIRPTA?

Can FIRPTA withholding be reduced or eliminated?