- Massachusetts Department of Revenue
Under proposed rules, as of June 1, 2025, personal income tax or corporate excise must be withheld on a non-resident seller’s capital gain from the sale or exchange of a Massachusetts property when the gross sales price is $1,000,000 or more.
Non-resident sellers include both individuals and business corporations that do not have a continuing business presence in Massachusetts.
The withholding agent, usually the closing attorney or title company, is responsible for withholding the tax or excise. If a third party is not involved, the buyer will be considered the withholding agent.
NOTE: This requirement will not go into effect on June 1, 2025. DOR anticipates it will go into effect later in 2025. Non-resident sellers may still have to make an estimated tax payment under the current rules.
Visit Proposed Withholding Requirement: Sale of Real Estate by Non-Residents for answers to frequently asked questions.
