Form IT-2663: Nonresident Real Property Estimated Income Tax Payment Form (2026)

Q: How much income can be excluded on IT-221?

You may exclude up to <b>$5,000 ($10,000 for joint filers)</b> of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Q: Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does <b>not</b> allow an HSA deduction.

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-2663 — Nonresident Real Property Estimated Income Tax Payment Form as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form IT-2663 must be filed by nonresidents of New York State who sell or transfer real property located within the state. It calculates and remits the estimated New York State personal income tax on the gain realized from the sale. This form ensures tax compliance at the time of transfer and must be submitted along with the deed to the county clerk or recording officer when the transaction is recorded.

If the property is your principal residence or qualifies for a nonrecognition event such as a like-kind exchange, you may be exempt from payment, but you must still file the form to claim the exemption and avoid recording delays.

Who must file: Any individual, estate, or trust that is not a New York State resident and sells or transfers real property in the state must complete Form IT-2663 at the time of sale.
Submission: The form, along with any required payment, is filed with the county recording officer, not directly with the New York State Department of Taxation and Finance. The payment represents estimated income tax on the recognized gain from the sale.
Exempt transfers: No payment is required if the sale qualifies as your principal residence under IRC §121, a governmental or nonprofit transfer, or a qualified like-kind exchange under IRC §1031. You must still complete Part III of Form IT-2663 to certify the exemption.
Calculation of estimated tax: The gain is the difference between the property’s selling price and adjusted basis (purchase cost plus improvements, less depreciation). Multiply the gain by the applicable New York State tax rate to determine the estimated payment. If filing jointly, calculate based on each owner’s share.
Documentation: Retain proof of the transaction, payment, gain calculation, and any exemption claimed. The amount paid on IT-2663 may be used as a credit on your New York State income tax return for the year of sale.

Nonresident Real Property Estimated Income Tax Payment Form
Part 2 – Estimated tax information (Complete Worksheet for Part 2 on page 2 before completing this part.)
1	Sale price (from Worksheet for Part 2, line 15)		1
2	Total gain (from Worksheet for Part 2, line 17; if a loss, enter 0)		2
3	Estimated tax due (from Worksheet for Part 2, line 20)		3
4	This is to certify that the transferor/seller of this property is a nonresident of New York State and is not required to pay estimated tax under Tax Law section 663 due to one of the following reasons:
	A The sale or transfer of this property results in a loss (less than or equal to zero) for federal income tax purposes (you must complete Worksheet for Part 2 on page 2 of this form).
	B The transferor/seller is not required to recognize any gain or loss with respect to the transfer under provisions of the Internal Revenue Code (IRC) (except for section 121) (you must complete the summary below).
	Brief summary of the transfer (include the section(s) of the IRC and facts supporting the claim that the recognition of the gain or loss is not required with respect to the sale or transfer):
Worksheet for Part 2
Use this worksheet to compute your gain or loss on the sale or transfer of the real property. The gain or loss is computed in the same manner as for federal income tax purposes. For more information, see federal Publication 523, Selling Your Home; Publication 544, Sales and Other Dispositions of Assets; and Publication 551, Basis of Assets. These publications are available on the Internal Revenue Service’s website at www.irs.gov.
Computation of cost or other basis
5	Purchase price of property		5
	Increases to basis:
6	Improvements	6
7	Closing costs	7
8	Other (explain)	8
9	Add lines 6, 7, and 8		9
10	Add lines 5 and 9		10
	Decreases to basis:
11	Depreciation (if applicable) .	11
12	Other (explain)	12
13	Add lines 11 and 12		13
14	Adjusted basis of property (subtract line 13 from line 10)		14
Gain or loss
15	Sale price less selling expenses (enter here and on the front page, Part 2, line 1)		15
16	Cost or adjusted basis (from line 14 above)		16
17	Total gain or loss: Subtract line 16 from line 15. If the amount is a gain (greater than zero), enter here, on the front page, Part 2, line 2, and continue with line 18. If the amount is a loss (less than or equal to zero), enter 0 here, on line 20 below, and on the front page, line 2. Complete Part 2, Part 3, and Form IT-2663-V on page 3		17
Estimated tax due
18	Enter the gain from line 17 (if only a portion of the gain from line 17 is subject to tax, see instructions below)		18
19	New York State tax rate % ()		19
20	Estimated tax due (Multiply line 18 by line 19, and round to the nearest whole dollar; enter here and on the front page, Part 2, line 3. Complete Form IT-2663-V, Nonresident Real Property Estimated Income Tax Payment Voucher, on page 3.)		20

Computation Example

Suppose a nonresident sells property in New York for $550,000 with an adjusted basis of $350,000, realizing a gain of $200,000. If the top applicable New York tax rate is 10.9%, the estimated tax due is $21,800. This amount must be remitted with Form IT-2663 when recording the deed.

If the property qualifies as your primary residence under federal rules, you can claim an exemption in Part III of the form and no tax is due at recording. However, ensure your documentation supports the exemption to avoid challenges during audit or title processing.

For installment sales or deferred-payment transactions, compute and pay estimated tax on the recognized portion of gain for the current year, following the IT-2663 instructions.

County clerks cannot record the deed without the completed IT-2663 form (or proof of exemption). The form also provides an official record of estimated tax payments for later reconciliation on your annual New York State income tax filing.

Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.

Filing and Compliance Tips

Ensure the gain computation is accurate before closing. Overstating basis or underreporting sale price can cause underpayment penalties. Coordinate with your attorney or closing agent to prepare the IT-2663 and ensure payment accompanies the deed.

Maintain a copy of the recorded form, the check or payment confirmation, and all supporting worksheets. This will allow you to claim the credit accurately when filing your next state tax return.

If you qualify for an exemption, ensure Part III is completed and documentation (such as proof of principal residence or exchange documents) is retained. Errors or incomplete forms can delay the closing or result in county rejection of the deed for recording.

Quick Access Tools

Frequently Asked Questions

Does IT-203-ATT replace IT-112-R or IT-112-C?

No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.

How much income can be excluded on IT-221?

You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Can part-owners of a property claim IT-119?

Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.

Can I use IT-203-B to claim the NY College Tuition Deduction?

Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.

Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does not allow an HSA deduction.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.