California Tax Withholding In Real Estate Sales

Note: This is typically handled by escrow.

California Revenue and Taxation Code requires that buyers withhold an amount equal to 3 1/3 percent of the sales price of the California real property conveyed. Most sellers qualify for an exemption, which means that often no California withholding is required.

Where Can I Learn More?

• California Association of Realtors Quick Guide
• California Franchise Tax Board Website on Real Estate Withholding

Return to California Real Estate Disclosure Requirements