What is the MASSACHUSETTS DOR Seller Withholding?
The Massachusetts Department of Revenue (DOR) recently enacted real estate withholding regulation 830 CMR 62B.2.4, effective November 1, 2025. Under this regulation, withholding at closing is required for any non-resident individual or entity selling Massachusetts real estate for a purchase price over $1,000,000.
WHY?
Non-residents frequently sell Massachusetts property and move or remain out of state. Without withholding, the DOR has no practical way to collect taxes owed on the sale. This regulation ensures the tax is collected upfront at closing.
THE CALCULATOR
The Calculator below will assist non-resident Seller's by providing estimates of potential tax withholding with either the Standard or Alternative filing method. Seller's are advised to work with a CPA or tax professional when filling out the Transfer Certificate form using the Alternative Filing Method.
Questions on how this impacts the closing process?
ABOUT
Christina Petrucci, ESQ is a Massachusetts real estate closing attorney and Partner at Dalton & Finegold LLP. She represents buyers, sellers, and lenders throughout the Commonwealth, with a focus on efficient closings, clear communication, and practical guidance for real estate agents.
DISCLAIMER
Christina Petrucci, ESQ is not a certified public accountant (CPA) or licensed tax professional. Any tax-related questions, calculations, or decisions should be reviewed with a qualified CPA.
