Not a tax on leaving. From November 1, 2025, Massachusetts withholds 4% of the gross price when a nonresident sells real estate for $1,000,000 or more, and 8% on the part above $1,107,750.
In short, current to September 2026
Source: the Patrician.ch board, an original ranking of 100 residence addresses across 48 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to September 2026. Updated . Cite as: Patrician.ch, Massachusetts exit tax 2026: the 4% nonresident withholding, patrician.ch/answers/massachusetts-exit-tax/, September 2026.
| Gross price | Default withholding | Share of the price |
|---|---|---|
| $1,500,000 | $75,690 | 5% |
| $3,000,000 | $195,690 | 7% |
| $5,000,000 | $355,690 | 7% |
| $10,000,000 | $755,690 | 8% |
Elect the alternative on the Transferor's Certification and a $3,000,000 sale with $1,200,000 of estimated net gain holds $63,690 instead of $195,690.
Sources: 830 CMR 62B.2.4, sections (3)(c), (3)(d), (4)(b) and (5). Surtax threshold for tax year 2026 as certified by the Massachusetts Department of Revenue on November 20, 2025. Individual sellers. A corporation without a continuing Massachusetts presence is withheld at the corporate excise rate on the alternative method. The closing attorney files Form NRW and pays within 10 days of closing.
| State | On the move itself | Held at closing when a nonresident sells | Form |
|---|---|---|---|
| California | Nothing. Proposition 40 is on the November 3, 2026 ballot | 3 1/3% of the sale price, or 12.3% of the gain by election | FTB Form 593 |
| New Jersey | Nothing | 10.75% of the gain or 2% of the price, whichever is greater, plus the seller-paid graduated fee of 1% to 3.5% on sales above $1,000,000 | GIT/REP-1 |
| New York | Nothing | 10.9% of the gain | IT-2663 (IT-2664 for a co-op) |
| Maryland | Nothing | 8.75% of the net proceeds, 8.25% for an entity | MW506NRS |
| Massachusetts | Nothing | 4% of the gross price, plus 4% on the part above $1,107,750, on sales of $1,000,000 or more | Form NRW |
Sources: Franchise Tax Board, 2026 instructions for Form 593. N.J.S.A. 54A:8-8 to 8-10, P.L. 2025, c.69. NY Tax Law section 663, 2026 Form IT-2663. Comptroller of Maryland Tax Alert, April 13, 2026. 830 CMR 62B.2.4, from November 1, 2025. Each is a prepayment of income tax, reconciled on the nonresident return for the year of sale, not a separate tax. Exemptions exist in every state, the sale of a principal residence whose gain is excluded being the common one.
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No tax on moving out. Since November 1, 2025, Massachusetts withholds income tax at closing when a nonresident sells real estate for $1,000,000 or more.
It is a prepayment, credited on the nonresident return for the year of sale.
4% of the gross price, plus 4% on the part above $1,107,750 in 2026.
On a $3,000,000 sale that is $195,690. Electing to be withheld on the estimated net gain instead means 5%, plus 4% above the threshold.
No. The resident exemption needs residence from January 1 of the year of sale through closing and a certification that residence continues after it.
A seller leaving the state in the year of the sale is withheld on, even when the house sells before the move.
Give the closing attorney a Transferor's Certification at or before closing, electing withholding on the estimated net gain or claiming an exception.
The gain excluded on a principal residence under federal section 121, debts paid at closing and a like-kind exchange all reduce it. A certification filed after the withholding return cannot.
Yes. The extra 4% on the part of the price or gain above $1,107,750 prepays the 4% surtax on taxable income over that threshold.
The threshold is indexed each year: $1,083,150 for 2025 and $1,107,750 for 2026.
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Tax figures use a simplified marginal model with indicative 2026 brackets for a non-US single filer, ignore social contributions, most deductions, wealth taxes, and treaties, and are not advice. Residence rules change often. Verify before acting.