Calculators
FIRPTA withholding, in plain English
Foreign seller on a Florida closing — or buying from one? See the federal withholding picture in seconds: the 15% default on the amount realized under IRC §1445, and the buyer residence-intent adjustments at $300,000 and $1,000,000. Education only — whether FIRPTA applies, exceptions, and withholding certificates are questions for the seller's tax professional.
FIRPTA's 'amount realized' is generally the contract sales price — the figure the withholding is computed on.
The $300,000 and $1,000,000 adjustments apply only when the buyer signs the statutory residence-intent certification — a decision that belongs to the buyer.
FIRPTA withholding estimate
$500,000.00 · Amount realized
- $500,000.00
Amount realized
Generally the contract sales price
- 15%
Estimated withholding rate
Default rate under IRC §1445
The default applies: when FIRPTA applies to the transaction, 15% of the amount realized is withheld at closing and remitted to the IRS.
For the seller’s tax professional to determine
Whether FIRPTA applies at all, whether an exception fits, and whether a withholding certificate (IRS Form 8288-B) can reduce or pause the amount withheld are determinations for the seller’s tax professional — they turn on facts this estimator cannot know, including the seller’s status and the transaction’s structure. Withholding is also not the final tax: the seller’s actual liability is settled on a U.S. tax return. Milestone Title provides title, escrow, and settlement services only — this is education, not tax or legal advice.
Educational estimate of federal FIRPTA withholding under IRC §1445 — the 15% default on the amount realized and the buyer residence-intent adjustments at $300,000 and $1,000,000 — as of July 2026. It does not determine whether FIRPTA applies to your transaction, whether an exception fits, or whether a withholding certificate changes the figure. This is not a quote, tax advice, or legal advice.
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