NYS Form IT-2663 & Form IT-2664 Non-Resident Real Property & Co-op Estimated Income Tax Withholding Guide (2026)
Complete 2026 guide to New York State Form IT-2663 (real property deeds) and Form IT-2664 (co-op shares): 10.90% withholding math, TP-584 exemptions, and Form IT-203 refunds.
2026 Statutory Briefing (New York State & New York City (All 62 NY Counties)): Under New York Tax Law § 663, any non-resident individual, estate, or trust selling real property (Form IT-2663) or cooperative apartment shares (Form IT-2664) in New York State must calculate and remit estimated NYS personal income tax equal to 10.90% (the highest NYS statutory marginal tax rate) multiplied by the net capital gain realized on the sale before the county clerk or ACRIS will record the deed. Because actual NYS non-resident tax brackets (4.00% to 6.85% on gains under $2,155,350 Married) are substantially lower than the mandatory 10.90% closing withholding rate, most non-resident sellers recover 35% to 45% of their IT-2663/IT-2664 escrow payment as a tax refund when filing Form IT-203.
NY State Non-Resident Seller Estimated Income Tax Withholding (Form IT-2663 & IT-2664) Calculator (2026)
Calculates the mandatory New York State non-resident seller estimated income tax payment (10.90% top statutory rate multiplied by net capital gain on Form IT-2663 for real property deeds or Form IT-2664 for Co-op shares) required by county clerks before recording a conveyance, and checks Form TP-584 Schedule D IRC § 121 primary residence exemptions.
2026 Statutory Benchmark Matrix & Comparative Schedule
The quantitative benchmark schedule below models the exact 2026 statutory rates, filing thresholds, and net cash-flow outcomes verified against N.Y. Tax Law § 663 · Form IT-2663 (Real Property) · Form IT-2664 (Cooperative Units) · Form TP-584 Schedule D · Form IT-203:
| Net NY Realized Capital Gain | Mandatory 10.90% Closing Withholding (IT-2663 / IT-2664) | Actual NYS Tax Liability (Form IT-203 Married) | Expected NYS Overpayment Refund | Statutory Exemption Path (If Eligible) |
|---|---|---|---|---|
| $150,000 Net Gain | $16,350 | $8,012 (5.34% Effective) | $8,338 Refunded | Form TP-584 Sch. D (§ 121 Primary Home) |
| $350,000 Net Gain | $38,150 | $20,160 (5.76% Effective) | $17,990 Refunded | IRC § 1031 Like-Kind Exchange Deferral |
| $650,000 Net Gain | $70,850 | $40,710 (6.26% Effective) | $30,140 Refunded | Zero-Gain / Capital Loss Certification |
| $1,250,000 Net Gain | $136,250 | $81,810 (6.54% Effective) | $54,440 Refunded | Transfer to Surviving Spouse / Foreclosure |
| $2,500,000 Net Gain | $272,500 | $177,090 (7.08% Effective) | $95,410 Refunded | Installment Sale Principal Allocation |
1. How NY Tax Law § 663 Enforces Closing-Table Withholding on Form IT-2663 and Form IT-2664
Unlike New Jersey’s GIT/REP-1 exit tax (which enforces a 2% gross sale price floor), New York Tax Law § 663 calculates non-resident seller withholding strictly on the estimated net capital gain reported on Worksheet Line 15 of Form IT-2663 (for fee-simple real estate, houses, and condominiums) or Form IT-2664 (for cooperative apartment stock shares), multiplied by the highest New York State individual income tax rate in effect for the taxable year (10.90% in 2026).
For fee-simple real estate and condos, the title closer collects a certified check or attorney escrow check payable to "NYS Income Tax" along with signed Form IT-2663, because no county recording officer in New York may record a deed unless either Form IT-2663 is accompanied by full payment or the seller qualifies for a Schedule D certification on Form TP-584. For NYC Co-ops (which involve stock certificates rather than recorded deeds), the transfer agent collects Form IT-2664 and the check must be mailed to the NYS Tax Department within 15 days of the delivery of the instrument of transfer.
2. Qualifying for 100% Exemption From IT-2663 / IT-2664 Withholding at Closing
A seller does NOT have to pay the 10.90% estimated tax at closing if any of the following statutory exemptions apply on Form TP-584 Schedule D (or Part 3 of Form IT-2664): (1) The seller is a New York State resident on the date of closing; (2) The property being sold qualified as the seller’s principal residence under Internal Revenue Code § 121 for at least 2 of the 5 years preceding the sale AND the entire gain is excluded; or (3) The transfer produces zero net gain (or a net capital loss) after subtracting original purchase price, documented capital improvements (Form IT-2663 Worksheet), and closing selling expenses.
Important trap for high-value NYC and Hamptons sellers: if you moved to Florida 18 months ago and sell your former Manhattan apartment with a $900,000 total gain (exceeding the $500,000 Married IRC § 121 exclusion by $400,000), only the $500,000 excluded portion is exempt; you must still file Form IT-2663/IT-2664 and remit 10.90% ($43,600) on the $400,000 taxable excess gain.
3. Claiming Your Overpayment Refund on Form IT-203 (Nonresident and Part-Year Resident Return)
Because the 10.90% statutory withholding rate on Form IT-2663/IT-2664 really only applies in New York’s marginal brackets to income above $25,000,000, virtually every non-resident seller with a gain under $5,000,000 is over-withheld at the closing table. The NYS progressive rate on income between $323,200 and $2,155,350 (Married Filing Jointly) is 6.85%—a 4.05 percentage-point spread below the 10.90% withholding rate.
To recover that overpayment, retain the stamped copy of Form IT-2663-V / IT-2664-V from your closing statement and report the payment on the estimated tax payments line of your New York State Form IT-203 (Nonresident and Part-Year Resident Income Tax Return) after year-end.
CPA & Attorney Audit Verification Checklist (2026 Tax Year)
- Verify Governing Statutory Deadlines: Cross-check your exact filing window under N.Y. Tax Law § 663 · Form IT-2663 (Real Property) · Form IT-2664 (Cooperative Units) · Form TP-584 Schedule D · Form IT-203 and download our
.icsdeadline calendar inside the interactive calculator above. - Stress-Test Marginal Cliffs vs. Progressive Brackets: Use the ⚖️ Pin Scenario A to Compare button inside the simulator to evaluate how a $10,000 to $250,000 shift in income, basis, or property value alters your net after-tax liability.
- Archive Parameterized Documentation: Click ✉️ Email Worksheet to Me / CPA or 📊 Export CSV Breakdown to attach a timestamped calculation schedule to your closing file or tax workpapers.
Frequently Asked Questions: NYS Form IT-2663 & Form IT-2664 Non-Resident Real Property & Co-op Estimated Income Tax Withholding Guide (2026)
Does NYC also charge the 3.876% NYC Resident Tax on a non-resident selling a NYC apartment?
No. New York City personal income tax applies only to NYC residents. A non-resident of NYC selling a Manhattan or Brooklyn Condo/Co-op owes NYS non-resident income tax (and NYC/NYS Real Property Transfer Tax), but $0 NYC personal income tax on the capital gain.
Can I reduce my Form IT-2663 gain with selling commissions and transfer taxes?
Yes. The Form IT-2663 / IT-2664 Estimated Gain Worksheet allows you to add broker commissions, legal fees, NYC Real Property Transfer Tax (RPTT), NYS Transfer Tax, and documented capital improvements to your adjusted basis, directly reducing the 10.90% withholding check.
Does an IRC § 1031 Like-Kind Exchange exempt me from Form IT-2663 withholding?
Yes, provided 100% of the gain is deferred under IRC § 1031 with zero taxable boot. If you receive partial cash or mortgage relief boot at closing, the 10.90% withholding applies only to the recognized boot.
Standard Press, Substack, Reddit & CPA Attribution (100% Human-Authored & Attorney-Reviewed):
According to East Corp Capital’s 2026 Quantitative Study ("NYS Form IT-2663 & Form IT-2664 Non-Resident Real Property & Co-op Estimated Income Tax Withholding Guide (2026)", authored by Pablo Cirre Gómez and legally reviewed by Enrique Zarza, Esq., ICAM Bar No. 68.400, https://eastcorpcapital.com/nys-form-it-2663-it-2664-nonresident-real-property-estimated-income-tax-calculator-2026/)
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Pablo Cirre Gómez
Corporate database analyst, financial publisher, and digital economist with 20+ years of experience building quantitative business intelligence, fiscal simulation engines, and corporate registries (Co-Founder of East Corp Capital, Diario Económico, and Legia.es). Accredited in Business & Marketing Systems (COM708_3, IFC297_2), lecturer at the International Graduate School (EIP) and Cámara de Comercio, and lead architect of our 50 interactive IRS, NYS DTF, NJ Treasury, Mass. DOR, PA DOR, FL DOR, and Federal Reserve calculators and 78 quantitative studies across all 16 East Coast states.
Enrique Zarza (José Enrique Rodríguez Zarza), Esq.
Practicing litigation, banking, real estate, and corporate compliance attorney admitted to the Illustrious Bar Association of Madrid (ICAM No. 68.400) with over 25 years of professional practice. Law Degree & Master in Legal Practice (Universidad de Granada), Executive Management (San Telmo Business School), pioneer in digital banking contracting (CaixaBank / CTI Soluciones), Founder of ICIRED, former Managing Director of the Judicial Default Registry (RIJ) partnered with the General Council of Spanish Lawyers (Abogacía Española), and Co-Founder of Legia.es, Diario Económico, and East Corp Capital. Audits all statutory citations against primary U.S. federal (IRS, Treasury, Fed) and 16-state revenue publications.
irs.gov, treasurydirect.gov, federalreserve.gov, ssa.gov) and state (tax.ny.gov, nyc.gov/site/finance, nj.gov/treasury, mass.gov, revenue.pa.gov, corp.delaware.gov, floridarevenue.com) publications. Open-data verification: 2026 Master CSV · datapackage.json · CITATION.cff..gov) from the IRS, NYS Dept. of Taxation and Finance, NYC Dept. of Finance, NJ Treasury, PA Dept. of Revenue, Mass. DOR, FL Dept. of Revenue, and the Federal Reserve. Always consult a licensed U.S. CPA, Enrolled Agent (EA), or tax attorney admitted in your jurisdiction before filing. To report a statutory update, contact our Editorial Desk under our Corrections Policy.