Form IT-2663: Selling a New York Home After Moving Out of State

The short answer: if you are not a New York resident on the day you sell a house, condo unit or land in New York, the State collects an estimated income tax payment on your gain at the closing, on Form IT-2663. For sales in 2026 it is 10.90% of the gain. It is not an extra tax: it is credited on the New York nonresident return you file for that year, and anything paid beyond what you owe can be refunded then. A home that still qualifies as your principal residence under the federal home-sale rules is exempt.

Who files IT-2663

• Nonresident sellers — individuals, estates and trusts — selling or transferring New York real property. What counts is your residency on the date of the sale, so settle that question with your accountant before you list.
• Not New York residents. A seller who is a resident at the time of the sale signs a residency certification instead (Form TP-584, Schedule D).
• Not co-op sellers. Co-op shares use Form IT-2664 (below).
• One form per seller. Each nonresident seller on the deed files separately, with a separate check; a married couple selling together may file one form and one check.

When no payment is due

• It was your principal residence. If the property qualifies in full as your principal residence under the federal home-sale exclusion (IRC section 121), you are exempt — even if your gain is larger than the federal exclusion. The usual test is that you owned it and lived in it as your main home for at least two of the five years before the sale, so a home you moved out of recently can still qualify. If only part of the property was your residence (a two-family house where you rented the other unit, for example), the estimate is due on the part that was not.
• There is no gain. If the sale is a loss or breaks even, the payment is $0. You still complete the form and certify the loss on it.
• No gain is recognized. For example, a like-kind exchange under IRC section 1031, explained on the form.
• Foreclosure. Conveying the property to the lender in foreclosure, or by a deed in lieu, with no other payment.
• Government and agency parties. A sale to or from a federal or New York agency, Fannie Mae, Freddie Mac, Ginnie Mae or a private mortgage insurer.

The principal-residence, foreclosure and agency exemptions are claimed on Form TP-584, Schedule D, instead of filing IT-2663.

How the payment is figured

1. Adjusted basis: what you paid for the property, plus improvements and your purchase closing costs, less any depreciation (for example, years it was rented).
2. Gain: the sale price less selling expenses, minus that adjusted basis.
3. Estimated tax: the gain times 10.90%, rounded to the nearest dollar. The State sets the rate as the highest income tax rate in the Tax Law for the year of the sale.

Arithmetic on the form's own rate, for illustration — not a quote. The figure is on the gain, not the sale price. It is an estimate at the top rate; your actual New York tax is figured on your return.

How it is paid at the closing

Form IT-2663 and a separate check or money order payable to “NYS Income Tax” go to the county's recording officer when the deed is presented for recording, together with the transfer-tax forms (Form TP-584, or TP-584-NYC in Queens and Brooklyn). It is not mailed to the Tax Department. The deed is not to be recorded unless each seller either signs the exemption certification on TP-584, Schedule D, or presents IT-2663 with full payment. That is why the form and check are prepared before the closing and collected at it.

Selling a co-op? A co-op is shares, not a deed, so a nonresident uses Form IT-2664 instead. It is filed with Form TP-584 and sent, with any payment, to the New York State Tax Department within 15 days of the transfer.

What happens after the closing

• File a New York nonresident return (Form IT-203) for the year of the sale. Gain from New York real property counts as New York income for a nonresident.
• The IT-2663 payment is credited there, counted with your estimated tax payments.
• Overpaid? Claim the refund on that return. The State does not refund an IT-2663 payment before the return is filed.
• Nothing due at closing? You may still have to file a New York return to report the sale.

IT-2663 and FIRPTA are different

FIRPTA is federal and applies only to sellers who are foreign persons: the buyer is generally the withholding agent, at generally 15% of the amount realized — the price, not the gain. IT-2663 is New York State's, applies to any seller who is not a New York resident, including a U.S. citizen who moved to Florida, and is figured on the gain. A foreign seller of New York property can be subject to both.

Common questions

What is Form IT-2663?

Form IT-2663 is New York State's Nonresident Real Property Estimated Income Tax Payment Form. A seller who is not a New York resident on the date of the sale uses it to figure the gain on New York real property and pay estimated State income tax on that gain at the closing, unless an exemption applies. It is a prepayment toward the seller's New York income tax for that year, not a separate tax.

Who has to file Form IT-2663?

Nonresident individuals, estates and trusts that sell or transfer New York real property, such as a house, a condo unit or land. It does not apply to a seller who is a New York resident at the time of the sale, and co-op apartments use a different form, IT-2664. Each nonresident seller files a separate form, though a married couple selling together may file one.

How much is the IT-2663 payment?

For sales in 2026, the form applies 10.90% to the gain, which the State sets as the highest income tax rate in the Tax Law for that year. The gain is the sale price less selling expenses, minus your adjusted basis: what you paid, plus improvements and purchase closing costs, less any depreciation. On a $250,000 gain that is $27,250. If there is no gain, the payment is $0, but the form is still completed.

I moved out of state. Is my old home still exempt as a principal residence?

It can be. A nonresident does not pay the IT-2663 estimate if the home qualifies in full as their principal residence under the federal home-sale exclusion (Internal Revenue Code section 121). That generally means you owned it and lived in it as your main home for at least two of the five years before the sale, so a home you moved out of recently can still qualify. The exemption applies even if your gain is larger than the federal exclusion. It is claimed on Schedule D of Form TP-584 instead of filing IT-2663. Confirm your eligibility with your accountant.

Do I get the IT-2663 payment back?

It is credited toward the New York income tax you owe for the year of the sale. You report the sale on your New York nonresident return, Form IT-203, where the IT-2663 payment counts with your estimated tax payments. If it is more than the tax you owe, you claim the refund on that return; the State does not refund it before the return is filed.

Who collects the IT-2663 at the closing?

The form and a separate check or money order payable to "NYS Income Tax" go to the county's recording officer when the deed is presented for recording. The deed is not to be recorded unless each seller either signs the exemption certification on Form TP-584, Schedule D, or presents Form IT-2663 with full payment. In New York City, Form TP-584-NYC takes the place of TP-584.

Is IT-2663 the same as FIRPTA?

No. FIRPTA is a federal rule for sellers who are foreign persons: the buyer is generally the withholding agent, and the rate is generally 15% of the amount realized, the price rather than the gain. IT-2663 is a New York State payment for any seller who is not a New York resident, including a U.S. citizen who moved to another state, and it is figured on the gain. A foreign seller of New York property can be subject to both.

Does IT-2663 apply to selling a co-op?

No. A nonresident selling co-op shares uses Form IT-2664, the Nonresident Cooperative Unit Estimated Income Tax Payment Form. It is filed with Form TP-584 and sent with any payment to the New York State Tax Department within 15 days of the transfer, rather than going with a deed to the county.

Sources: NYS Department of Taxation and Finance Form IT-2663 (2026) and its instructions, IT-2664 instructions (2026), IT-203 instructions; IRS, FIRPTA withholding. Checked 2026-10-23.

Joseph DeVito is a New York Licensed Associate Real Estate Broker and a New York attorney. He does not act as both broker and attorney on the same transaction: here he acts as a real estate broker only, and he is not your attorney. Real estate services provided through Keller Williams Realty Greater Nassau are not legal representation. Everything on this site is general information for educational purposes only. It is not legal advice, it creates no attorney-client relationship, and it should not be relied on as legal advice — for advice about your own situation, consult your own attorney.

This page is general tax information, not tax or legal advice for your sale. Whether you are a nonresident, whether an exemption applies, and what you will owe depend on your own facts, so confirm them with your accountant or tax professional and the attorney handling your closing.

Every other cost a seller pays at closing, with the official rates: what sellers pay at closing in New York and New York transfer tax.

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