FIRPTA Withholding Calculator
Estimate ordinary FIRPTA withholding on a U.S. property sale using the full transaction amount and the confirmed foreign-seller allocation.
What This Calculator Does
FIRPTA generally requires the buyer to withhold part of the amount realized when a foreign person transfers U.S. real property. This calculator estimates ordinary withholding for a Florida property sale. It preserves cents at the $300,000 and $1,000,000 thresholds, separates the full transaction from the foreign sellers' allocated base, and can compare withholding with a professional tax estimate you supply.
Who Is This For
Sellers treated as foreign persons under U.S. tax rules, buyers who need to plan for their withholding responsibility, and real estate agents helping either side prepare for a Florida closing. Foreign status for FIRPTA depends on the applicable tax rules, not citizenship alone; confirm it with a U.S. tax professional.
How It Works
Enter the gross amount for the entire transaction and the confirmed percentage attributable to foreign sellers. Confirm qualifying residence use only when the individual buyer's plans meet the two-year occupancy conditions. The tool selects the rate using the whole transaction, then applies it to the foreign sellers' allocated amount. A supplied tax estimate enables a comparison; the calculator does not compute final tax.
Frequently Asked Questions
Is FIRPTA withholding the seller's final tax?
No. Ordinary FIRPTA withholding is based on the gross amount realized attributable to foreign sellers, not the profit. Final federal income tax depends on the seller's tax situation and must be determined separately. An excess shown against your supplied estimate is not an approved or guaranteed refund.
When do the 0%, 10% and 15% rates apply?
For qualifying residence use by an individual buyer or other occupants who qualify under the IRS definition for this FIRPTA residence-use rule, no withholding is required when the full transaction amount is $300,000 or less. The rate is 10% above $300,000 through $1,000,000, and 15% above $1,000,000. Without qualifying residence use, ordinary withholding is 15%. A single cent over a threshold can change the rate.
Does occasional use as a vacation home qualify?
Not by itself. The individual buyer must have definite plans for the buyer or other occupants who qualify under the IRS definition for this FIRPTA residence-use rule to occupy the property for at least 50% of the days it is occupied in each of the first two 12-month periods. Vacant days are excluded. Confirm the facts with the closing agent and a U.S. tax professional; signing a statement does not create eligibility.
What if the sellers have different FIRPTA tax statuses?
Use the full transaction amount to select the rate, then apply it to the amount attributable to foreign sellers. Only when the entire property is owned solely by those two spouses, one a U.S. person and one a foreign person, the IRS allocates 50% to each regardless of their ownership percentages. Confirm that situation and select the spouses option; it fixes the foreign share at 50%. If there are other owners, leave that option off and use a professionally confirmed allocation for all foreign sellers. A $600,000 qualifying residence transaction then has 10% withholding on $300,000, or $30,000. Entering only $300,000 as the full transaction would be wrong.
Can I deduct the mortgage balance or selling costs?
No. The gross amount realized includes cash, the fair market value of other property transferred and liabilities assumed by the buyer. Count each item once and do not add debt again if it is already included in the price. Mortgage payoff and selling costs are not deductions from this ordinary withholding base.
Does this calculator apply a withholding certificate or special exemption?
No. An IRS withholding certificate may reduce or eliminate required withholding, but applying for one does not itself approve a lower amount. Certificates, entity transfers, distributions and special exemptions require professional review outside this calculation.