Chapter 04 · Sale
US Capital Gains Tax Rates for Non-Residents
Federal flat rates on US real estate gains for foreign sellers.
Direct answer · 60-second summary
The 60-second version
- 30% general non-resident rate (non-ECI)
- US real property gains always taxable
- No LTCG vs. STCG distinction
- Form 1040-NR Schedule NEC (not Schedule D)
- IRC Section 871(a)
- Canadians: non-resident if ≤183 days in US/year
- Gain = sale price − adjusted basis
- FIRPTA withholding at closing (15% standard)
Acronyms used in this guide
- IRS — Internal Revenue Service
- LTCG — Long-term Capital Gain
- STCG — Short-term Capital Gain
- 1040-NR — Form 1040-NR (nonresident return)
- FIRPTA — Foreign Investment in Real Property Tax Act
30% flat rate
Non-residents selling US real property taxed 30% net capital gains per IRC §871(a), regardless of holding period.
Real property gains always taxable
Gains from US real property sales by non-residents ALWAYS taxable in US, regardless of time in country. Covered by FIRPTA.
No LTCG vs. STCG distinction
US residents: LTCG reduced rates (0–20% by income). Non-residents: 30% flat, 1 year or 20 years.
Form 1040-NR Schedule NEC
Non-resident real property gains: Form 1040-NR (not Schedule D for residents). Schedule NEC for real property gains.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Disclaimer
This guide is for educational purpose only.
For concrete decisions, consult a licensed attorney.