New York Form IT-2663 is the estimated income tax payment form that a nonresident individual, estate, or trust files when selling or transferring real property located in New York State. You hand it to the county recording officer, with payment, at the moment you present the deed for recording. Without it, the deed does not get recorded. The state uses the form to collect income tax on your gain up front rather than waiting for your annual nonresident return.
Who Has to File
If you are a nonresident of New York and you sell or transfer real property anywhere in the state, you file IT-2663. Individuals, estates, and trusts are all covered. You file even if the sale produced a loss; in that case you complete the worksheet, show zero tax, and certify the result on the form.
Under New York Tax Law Section 605, you are a nonresident if you are not domiciled in New York and you do not maintain a permanent place of abode there while spending more than 183 days in the state during the tax year.1New York State Senate. New York Code TAX 605 If your home is in another state and you own investment or vacation property in New York, you are almost certainly filing IT-2663 when you sell.
One boundary to note: shares in a cooperative housing corporation do not go on IT-2663. Co-op sales use the separate Form IT-2664 instead.2New York State Department of Taxation and Finance. Instructions for Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form
When You’re Exempt Instead
Three types of transfers skip IT-2663 entirely. If one applies, you sign Form TP-584, Schedule D at closing and file nothing else on the income tax side:3New York State Department of Taxation and Finance. Instructions for Form TP-584
- The property is your principal residence and the entire property qualifies under IRC Section 121, meaning you owned and lived in it for at least two of the five years before the sale. The word “entire” matters. A two-family house where you lived in one unit and rented the other does not qualify for Schedule D, and you file IT-2663.
- You are a mortgagor conveying the property to the mortgagee in foreclosure or in lieu of foreclosure, with no consideration beyond the mortgage balance.
- The buyer or seller is a U.S. or New York State government agency, Fannie Mae, Freddie Mac, Ginnie Mae, or a private mortgage insurance company.
Estates and trusts get no special exemption. A fiduciary selling a decedent’s New York property calculates and pays estimated tax on the entire gain, whether or not the estate plans to distribute proceeds to beneficiaries that year.
Calculating the Estimated Tax
For 2026, IT-2663 applies a flat 10.90% rate to your gain. That is New York’s highest statutory personal income tax rate under Tax Law Section 601, and the form uses it regardless of your actual income bracket for the year.4New York State Department of Taxation and Finance. New York Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form The 2026 version of the form covers sales occurring after December 31, 2025, and before January 1, 2027.
The math is simple: taxable gain multiplied by 0.1090. A $200,000 gain with no exclusions produces $21,800 of estimated tax. A loss produces zero, and you file anyway.
To find the gain, the worksheet on page 2 walks you through it. Start with the gross sale price. Subtract selling expenses such as broker commissions, transfer taxes, and attorney fees to reach the amount realized. Then calculate adjusted basis: original purchase price, plus capital improvements like a new roof, an addition, or a kitchen renovation, minus depreciation you previously claimed. Amount realized minus adjusted basis equals your gain or loss.
If part of the property was your principal residence for at least two of the five years before the sale, you can exclude up to $250,000 of gain, or $500,000 if you are married filing jointly, under IRC Section 121.5Office of the Law Revision Counsel. 26 USC 121 – Exclusion of Gain From Sale of Principal Residence The two years of ownership and use do not have to be consecutive. If the whole property qualifies, you should be signing TP-584 Schedule D instead; the IT-2663 exclusion is for mixed-use cases or gains that exceed the cap.
Because the form charges the top rate, many sellers overpay at closing. You get the excess back only when you file your annual New York nonresident return; there is no earlier refund path.2New York State Department of Taxation and Finance. Instructions for Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form
Installment Sales
If the buyer is paying over multiple years and you are using the installment method for federal purposes, you do not owe estimated tax on the full gain at closing. Enter on Line 18 only the portion of the gain you will report on your 2026 federal return, then multiply that amount by 10.90%. The form asks you to disclose the installment method and the duration of the agreement.4New York State Department of Taxation and Finance. New York Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form In later years, additional installment income runs through your annual nonresident return.
Filling Out the Form
You can download IT-2663 from the New York State Department of Taxation and Finance website. It has three parts plus the IT-2663-V payment voucher at the bottom, which must stay attached.
Part 1 covers the parties and the property: your Social Security number or EIN, both SSNs if you are filing jointly with a spouse, full legal names and current mailing addresses for seller and buyer, the property’s street address and county, the sale date, the property type, and the date you originally acquired it. Names should match the deed and your tax returns; mismatches slow the recording office down.
Part 2 is the gain-or-loss worksheet described above.
Part 3 is the certification. Check box A if the sale results in a loss and enter zero as the tax due. Check box B if the transfer is a like-kind exchange under IRC Section 1031 with no recognized gain, briefly describe the exchange, and note that you will file federal Form 8824.2New York State Department of Taxation and Finance. Instructions for Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form You sign and date under penalty of perjury.
The payment voucher at the bottom has to be filled in even if no tax is due. Enter your identifying information exactly as it will appear on your New York return. For estates and trusts, the fiduciary enters the EIN and their name and title on the second name line. Enter the sale date and the amount from Line 3. If the amount is zero, write “0” rather than leaving it blank. Do not detach the voucher.
Where to File and How to Pay
Submit the completed form, with the attached voucher, to the recording officer of the county where the property is located, at the time you present the deed. In New York City, that is the City Register’s office. The form does not go to the Tax Department by mail.4New York State Department of Taxation and Finance. New York Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form
There is no e-file option. Even in counties with electronic deed recording, the paper form has to be presented to the recording officer.
Make your check or money order payable to “NYS Income Tax,” not to the county clerk and not to the Department of Taxation and Finance. Write your name, the last four digits of your SSN or EIN, and “2026 IT-2663-V” on the check. Payment must be on a separate check from any other tax or recording fee. Pay the full amount on Line 3; do not reduce it for other estimated tax payments you may have already made for the year.2New York State Department of Taxation and Finance. Instructions for Form IT-2663 – Nonresident Real Property Estimated Income Tax Payment Form
If more than one nonresident seller is listed on the deed, each one files a separate IT-2663 with their own gain calculation and payment. A single form covering multiple sellers will be rejected.
After the Form Is Filed
Once the recording officer accepts the form and payment, the deed goes on the public record and the transfer is complete. The recording officer forwards the payment and form data to the Tax Department. Keep the stamped copy or receipt with your closing documents as proof.
The IT-2663 payment is not your final tax bill. You still have to file a New York State nonresident income tax return, Form IT-203, for the year of the sale. Report the IT-2663 payment on Line 65 of Form IT-203 as an estimated tax payment.6New York State Department of Taxation and Finance. Instructions for Form IT-203, Nonresident and Part-Year Resident Income Tax Return Your actual liability on IT-203 uses graduated nonresident rates against your total income, which usually produces a lower effective rate than 10.90%, and the difference comes back as a refund. Other New York-source income for the year can offset that refund, so plan for the reconciliation rather than counting on the full overpayment coming back.