Estimate potential FIRPTA withholding when a foreign seller sells U.S. real estate. This calculator provides a simplified estimate based on sale price and whether the buyer intends to use the property as a residence.
Use the FIRPTA Calculator
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What This FIRPTA Calculator Estimates
This tool estimates potential FIRPTA withholding when a foreign person sells U.S. real estate. FIRPTA withholding is generally calculated as a percentage of the sale price (the amount realized), although some residence-related transactions may qualify for reduced withholding.
FIRPTA Withholding Example
If a foreign seller sells a property for $450,000 and the buyer intends to use the property as a residence, withholding may be estimated at 10%, or about $45,000.
If the buyer does not qualify for the residence-related exception, withholding may be estimated at 15%, or about $67,500.
Frequently Asked Questions
Is FIRPTA always 15%?
Not always. Some residence-related transactions between $300,000 and $1,000,000 may qualify for reduced withholding.
Does FIRPTA mean the seller pays that exact tax?
No. FIRPTA withholding is a prepayment of tax. The seller may receive a refund after filing a U.S. tax return.
Can FIRPTA withholding be reduced before closing?
In some cases, the seller may apply for a withholding certificate from the IRS using Form 8288-B.
Related Calculators
Related Guides
FIRPTA Explained (2026): 15% Withholding, Refunds & Exceptions
Form 8288 and 8288-A Explained
Form 8288-B Explained: Reducing FIRPTA Withholding Before Closing
Important: This calculator is for educational purposes only. FIRPTA rules can vary based on seller status, buyer use, withholding certificates, and transaction details. Always confirm with a qualified tax professional before closing.