Form 593 - Real Estate Withholding Statement

What California Form 593 is

Form 593, Real Estate Withholding Statement, is the California Franchise Tax Board (FTB) form used when California real property is sold or transferred. Sellers use it to certify an exemption from California real estate withholding, and the person handling the funds uses it to report and send the amount withheld. This template is the 2026 edition (taxable year 2026). According to the FTB's 2026 Form 593 instructions, this version is for sales closing in 2026, installment payments made in 2026, and exchanges completed or failed in 2026.

Who uses Form 593

• Sellers or transferors complete their information, check any exemption that applies, and sign the perjury statement. The FTB asks for a separate Form 593 for each seller. Spouses or registered domestic partners (RDPs) who plan to file a joint return go on the same form.
• Remitters, usually the real estate escrow person (REEP). The instructions define a REEP as anyone involved in closing the transaction who receives and disburses payment, such as an escrow company, title company, attorney, or qualified intermediary (QI).
• Buyers in installment sales, who must withhold on the principal portion of each installment payment.

The FTB instructions list situations where withholding is not required, including a sales price of $100,000 or less, a property in foreclosure, or a seller who certifies an exemption in Part III.

What to have ready

• The escrow or exchange number
• Identification numbers: SSN or ITIN for individuals, or FEIN, CA Corp no., or CA SOS file no. for businesses
• The property's street address, parcel number, and county
• Each seller's ownership percentage (the instructions ask for two decimal places, for example 66.67%)
• For the computation: selling price, selling expenses, purchase price, and basis adjustments
• For an installment sale: the promissory note terms

How to fill out Form 593 online

Click "Fill Template Now", type into the fields on each of the three sides, check the boxes that apply, add signatures with the PDF signing tool, and download the finished file. Here is what each part of this form asks for.

Part I, Remitter Information

Check the AMENDED box only when correcting a form already filed. Enter the escrow or exchange number, then choose the remitter type (REEP, Qualified Intermediary, Buyer/Transferee, or Other) and enter the remitter's business or individual name, ID number, address, and telephone number.

Part II, Seller/Transferor Information

Enter the seller's name and ID number (plus the spouse or RDP if jointly owned, or the business or trust name), address, phone, property address, and ownership percentage.

Part III, full exemptions (lines 1-9)

These cover cases such as a principal residence under IRC Section 121 or a loss or zero gain (line 3, which requires Part VI). If you check any box on lines 1-9, the form tells you to skip Part IV and go to the perjury statement on Side 3.

Part IV, partial or no exemption (lines 10-12)

Line 10 is for IRC Section 1031 like-kind exchanges, line 11 is for installment sales, and line 12 is checked when no exemption applies and withholding is required.

Part V, Buyer/Transferee Information

Completed only for an installment sale (line 11). It asks for the buyer's identity, the principal amount of the promissory note, installment amount, interest rate, and repayment period in months, followed by the buyer's acknowledgment to withhold.

Part VI, Computation (lines 13-30)

Lines 13-28 work from selling price to estimated gain or loss. Line 29 is the alternative withholding calculation (gain times the rate for the filing type) and line 30 is the sales price method (selling price times 3 1/3%).

Part VII, Escrow or Exchange Information (lines 31-37)

The remitter enters the escrow number, date of transfer, the amount subject to withholding, the transaction type (line 35), the withholding method (line 36), and the amount withheld from this seller (line 37). The rates printed on the 2026 form are:

Signing and submitting

The seller checks the applicable boxes in the perjury statement and signs and dates Side 3. A buyer signs only in an installment sale. The form tells sellers to give Sides 1-3 to the remitter before the close of escrow. Once escrow has closed, the instructions say withheld amounts can be recovered only by claiming a credit on a California tax return.

Per the 2026 instructions (as of October 2026), the remitter sends the form to the FTB by the 20th day of the calendar month following the month escrow closes, together with Form 593-V and the payment. Paper filings go to Withholding Services and Compliance MS F182, Franchise Tax Board, PO Box 942867, Sacramento, CA 94267-0651. Remitters may instead file electronically through the FTB's SWIFT system. The remitter gives one copy to the seller and keeps one for at least five years. The instructions also state that electronic signatures, such as DocuSign, and scanned copies of Form 593 are considered as valid as the originals.

The seller later claims the line 37 amount as withholding on a California tax return.

Common mistakes

• Using a prior-year form. The FTB asks for the current-year Form 593 for the year the sale closed or the payment was made.
• Putting two unrelated sellers on one form instead of filing one form per seller.
• Entering an ownership percentage without two decimals, or leaving it blank.
• Completing Part IV after already checking a full exemption in Part III.

Which exemption applies is a tax question. The form itself notes that escrow persons cannot give legal or accounting advice and encourages sellers to consult a tax professional. More real estate templates are in the real estate forms collection.