New Jersey state withholding stacks at 10.75%. We handle the federal piece end-to-end for sellers, buyers, and New Jersey closing agents, with same-day intake response on every deal.
New Jersey stacks state withholding on top of federal FIRPTA. The default rate is 10.75% of the recognized gain, filed on GIT/REP-1 (at-closing) / GIT/REP-2 (prepay) at or shortly after closing. New Jersey's reduction path is GIT/REP-3 (residency exemption) / GIT/REP-4 (waiver) — the state-level analogue to a federal Form 8288-B, filed before closing to reduce withholding based on actual gain rather than the headline rate.
On a $1,000,000 New Jersey foreign-seller closing, the default closing-table withholding is $150,000 federal + $107,500 state = $257,500. Both halves can be reduced or eliminated via the right certificates filed before the deed records.
FIRPTA is federal — every Form 8288, 8288-A, and 8288-B routes to the IRS Ogden Service Center regardless of property location. We coordinate with New Jersey title companies, closing attorneys, and foreign sellers across:
Yes. New Jersey requires 10.75% withholding on nonresident-seller real-property sales, filed on GIT/REP-1 (at-closing) / GIT/REP-2 (prepay), on top of the federal FIRPTA 15%. The state-level reduction is GIT/REP-3 (residency exemption) / GIT/REP-4 (waiver) — analogous to a federal Form 8288-B.
Yes. The closing-table GIT/REP-1 (at-closing) / GIT/REP-2 (prepay) withholding is a deposit against the seller's final New Jersey liability on the gain — the seller files a nonresident return in New Jersey to reconcile and recover any over-withholding (or owe additional tax if the closing-table amount was too low).
Yes. FIRPTA is a federal tax regime; the IRS Ogden Service Center processes every Form 8288, 8288-A, and 8288-B regardless of the property's state. We coordinate with New Jersey title companies and closing attorneys nationwide via email, secure file upload, and our intake at firptaincometaxwithholding.com/#intake. Same-day response on every intake.
Same-day response. No fee to your title company. No surprises at closing.