Withholding Taxes

If the seller is neither a resident or a deemed resident, and the sales price is $300,000 or more, 3 percent of the sales price is withheld and remitted to the AL DOR if purchaser is an individual. If purchaser is a business entity, then 4 percent of the sales price must be withheld and remitted to the AL DOR.

No state requirements.

Arizona has no state withholding requirements in addition to FIRPTA.

None other than Child Support liens, State Tax liens and Municipal liens.

CALFIRPTA requires withholding of three and one/third percent of the sales price.

If the seller is a non-resident, or a corporation that does not maintain a permanent place of business in the state, the withholding tax will be the smaller of 2 percent of the sales price or the net proceeds from the sale.

None.

Form 5403 (http://www.revenue.delaware.gov/services/current_bt/5403.pdf) must accompany every deed to be recorded in Delaware. Every non-resident individual, pass through entity or corporation who makes, executes, delivers, accepts, or presents for recording

any document, except those exemptions defined or described in Sections 1126, 1606 and 1909 of Title 30, or in whose behalf any document is made, executed, delivered, accepted or presented for recording, shall be subject to pay for and in respect to the transaction or any part thereof, a Real Estate Tax at the rate of six and 95/100 percent (6.95%) of the value of the gain on the property sold as represented by such document, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be paid by the Transferor(s)/Seller(s).

There is no such requirement in the District of Columbia.

There are no separate withholding requirements on the state level.

O.C.G.A. section 48-7-128 requires a withholding of 3 percent on sales or transfers of real property by non-residents of Georgia.

Hawaii Investment Real Property Tax Act (HARPTA) 5 percent of sales price for non-residents of the State of Hawaii.

There is no state specific requirement regarding withholding proceeds from a sale.

None.

None.

No separate state requirements.

None.

None.

None.

Every buyer must withhold a withholding tax of two and one-half percent of the consideration paid for the property. The withholding must be transmitted to the state tax assessor within 30 days of the date of transfer of the property. See 36 M.R.S.A. 5250-A.

MD imposes a non-resident withholding tax of 7% of the net proceeds of the transaction for an individual, or 8.25% for entities. See Maryland Bulletin MD2015006 for details here: http://www.vuwriter.com/en/bulletins/2015-1/md2015006.html

None.

None.

None at state level.

Five percent withholding of the net proceeds for Non-Resident Seller.

Not applicable.

None.

No separate state requirements.

No additional withholding taxes, other than FIRPTA in Nevada.

None.

Under the NJ Gross Income Tax Act (N.J.S.A. 54A:1-1) non-resident individuals, estates or trusts must pay estimated income taxes at the time of the recording of a deed. Payment is based on the gain earned by the seller multiplied by the highest tax rate (8.97 percent). In no event can the amount withheld be less than 2 percent of the consideration on the deed. Payment is made to the State of NJ Division of Taxation and is submitted to the clerk at the time of recording.

No state requirements.

Nonresidents must compute the gain (or loss) and pay any estimated personal income tax due from the sale or transfer of certain real property, including cooperative units.

NC does not currently require closing agents or attorneys to withhold capital gains taxes for real estate transactions. There is a proposal to require such a withholding requirement for non-resident sellers similar to FIRPTA but it has not passed the NC legislature at this time.

None.

There are no separate withholding requirements on the state level.

There is no statutory provision for withholding proceeds from a sale on transactions similar to FIRPTA.

None.

There are no state requirements regarding the withholding of proceeds from a sale.

– What are Rhode Island’s requirements with regard to withholding proceeds from a sale?
Rhode Island General Laws, Section 44-30-71.3, Withholding Lien, states that any conveyance, other than a mortgage, creates a ten year invisible lien unless the deed contains specified withholding language. There are numerous forms of withholding language fitting every grantor entity and situation. The Act took effect on January 1, 1992 and requires the buyer of real estate owned by a non-resident seller to withhold a percentage of the net proceeds paid to the seller, which are remitted to the State. All of the necessary Regulations and forms can be found on the Rhode Island Division of Taxation website, https://tax.ri.gov/ . Instructions, forms and Regulations are found under the heading “Personal Income Tax.” The withholding for individuals and other assorted entities is six percent (6%), except for corporations, for which nine percent (9%) is withheld. These sums must be remitted to the R.I. Division of Taxation within three banking days.
If a seller is a Rhode Island resident, it is not necessary to withhold any amount from the seller’s proceeds, but specific withholding language must be included in the deed, so as to discharge the withholding lien. The language must state that the seller is a resident as evidenced by affidavit. There is a specific residency affidavit on the above state website. The language in the deed would read as follows:
“This transfer is such that no R.I.G.L. 44-30-71.3 withholding is required as sellers are residents of Rhode Island as evidenced by affidavit.”
Where a conveyance is a gift, the language would read:
“This transfer is by gift so that no documentary stamps are required
and no R.I.G.L. 44-30-71.3 withholding is required.”
Where a seller is a non-resident, the prescribed percentage of the seller’s net proceeds is withheld and remitted to the R.I. Division of Taxation within three banking days along with the prescribed remittance form. The buyer must then obtain an Acknowledgment of Discharge of Lien from the R.I. Division of taxation and record the same in the appropriate Land Evidence Records located in the thirty-nine cities and towns. Otherwise, the lien expires ten years from the date of the deed. The lien is subordinate to the lien of any purchase-money mortgage made by the buyer, except for a purchase-money mortgage to the seller. Consequently, the lien is extinguished by any foreclosure of the purchase money mortgage.
There are a large variety of withholding situations dependent on the type of seller or grantor involved in a Rhode Island conveyance. All Rhode Island issuing offices should contact the Stewart Underwriter responsible for Rhode Island for appropriate guidance and assistance.

Closing attorneys are required to withhold a percentage of the gain recognized by non-resident sellers. The amount of gain is specified by the seller in an affidavit, which the attorney and buyer may rely upon. The withholding rate is 7% of gain for individuals and 5% of gain for corporations and other entities.

None.

Tennessee has no withholding requirements for proceeds from a sale.

None.

There is no state specific requirement regarding withholding proceeds from a sale.

If any seller is a nonresident at the time of transfer, the buyer must withhold two and a half percent of the full consideration paid for the transfer and transmit it to the Commissioner of Taxes with Transfer Tax form RW-171 within 30 days of the transfer. If the buyer fails to withhold, the buyer is personally liable for the amount of the withholding.

No withholding, but form must be filed on non-residents.

None.

Tax must be withheld on sales by non-residents.

There are no state-specific requirements to mandate withholding of sale proceeds by a closing agent.

There are no state specific requirements regarding withholding proceeds from a sale.