United States · US foreign & out-of-state real-estate seller withholding (FIRPTA + state)

Don't lose tens of thousands at closing to a tax you'll mostly get back.

Worked-example guides to FIRPTA and state nonresident seller withholding — the exact forms, the 15% rule, and how to reduce or reclaim it.

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Written by Daniel Reyes, CPA (cross-border & nonresident real-estate tax) · figures verified against official United States sources

21worked-example guides
Verifiedfigures checked against official sources
2026-06-03last updated
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Three clusters that cover every foreign & nonresident seller hold

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FIRPTA basics & forms

The federal 15% rule, the $300K and 10% residence breaks, and Forms 8288, 8288-A and 8288-B — each as a worked closing-table example.

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State nonresident withholding

California 593, New York IT-2663, Maryland and Colorado — price-based vs gain-based withholding, the thresholds, and how it stacks on top of FIRPTA.

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Reducing & reclaiming

Cut the hold before closing with an 8288-B certificate, get an ITIN via W-7, file the 1040-NR refund, and understand the real refund timeline.

All guides

Every worked example, by topic

FIRPTA basics & forms

FIRPTA 15% Withholding on a $650,000 Sale: The Exact Numbers a Foreign Seller Sees at Closing When FIRPTA Applies: Walking a Sale Through the 'Foreign Person' and US Real Property Interest Test The FIRPTA $300,000 Residence Exemption: A $290,000 Sale Where the Buyer Withholds $0 The FIRPTA 10% Rate: A $750,000 Residence Sale Where Withholding Is Cut Nearly in Half Form 8288 Line by Line: How the Buyer Reports and Pays FIRPTA Withholding Within 20 Days Form 8288-A Explained: The Stamped Copy B That Lets a Foreign Seller Reclaim Their Withholding Form 8288-B Worked Example: Cutting Withholding From $97,500 to $11,000 Before Closing

State nonresident withholding

California Form 593: 3.33% on an $800,000 Sale Means $26,640 Held — Here's the Math New York IT-2663: Why a Nonresident's Withholding Is Based on the Gain, Not the Sale Price Maryland Nonresident Withholding: 8% on an Out-of-State Seller's $500,000 Home Sale Colorado DR 1083 & DR 1079: The 'Lesser of 2% or Net Proceeds' Rule on a $600,000 Sale FIRPTA Plus State Withholding: What a Foreign Seller Loses at Closing in CA, NY, MD and CO Out-of-State vs Foreign: Two Different Withholding Rules That Often Hit the Same Seller Getting State Withholding Back: How a Nonresident Recovers an Over-Held $26,640 in California California 593 vs New York IT-2663: Price-Based vs Gain-Based Withholding on the Same $1M Sale When State Withholding Does NOT Apply: Sale-Price Thresholds and Primary-Residence Exemptions

Reducing & reclaiming

Claiming a FIRPTA Refund on 1040-NR: Turning $97,500 Withheld Into a $86,000 Refund The FIRPTA Withholding Certificate Process: An 8288-B Timeline From Contract to Released Funds ITIN for FIRPTA: How a Foreign Seller Without a US Tax ID Gets One via W-7 to Reclaim Withholding 8288-B Worked Example: Proving a $90,000 Gain to Avoid Tying Up 15% of the Whole Sale Price FIRPTA Refund Timeline: Why It Takes 12-18 Months to Get $86,000 Back and How to Speed It Up

The Nonresident Seller Closing Checklist

A free one-page checklist of the forms, deadlines and ID numbers a foreign or out-of-state seller needs before the closing table. We'll email it over.