Seller Net Sheet Calculator: Net Proceeds After Tax
The classic seller net sheet stops at cash at closing. This one keeps going: federal capital gains, depreciation recapture, the 3.8% surtax and state tax, then the same sale paid out over time.
A seller net sheet that keeps going after the commission and closing costs. Put in the price, the payoff and what the seller paid. You get the classic net sheet (cash at closing), then the estimated federal capital gains tax, depreciation recapture, the 3.8% net investment income tax and state tax, so you see what the seller actually keeps. Then the same sale paid out over time, side by side. Free, no sign-up to see every number.
How to read a seller net sheet after tax
- Start with the price. The contract price, before anything comes out.
- Subtract the selling costs. Commission, escrow and title, transfer tax, and any credits to the buyer.
- Subtract the loan payoff. What is left is cash at closing: the number on a classic net sheet.
- Figure the gain. Price minus selling costs minus adjusted basis (what the seller paid, plus improvements, minus depreciation taken). The payoff does not change the gain.
- Tax the gain in layers. Depreciation comes back first as unrecaptured §1250 gain (up to 25% federal), then the rest at 0%, 15% or 20%, plus the 3.8% surtax above the income line and the state's tax.
- Subtract the tax from cash at closing. That is what the seller keeps, and it is the number they are really negotiating.
Tax rates this calculator uses (2026)
| Item | 2026 figure | Source |
|---|---|---|
| Long-term capital gains rate | 0% to $98,900 taxable income married filing jointly ($49,450 single); 20% above $613,700 ($545,500 single); 15% between | IRS Rev. Proc. 2025-32 (October 9, 2025) |
| Unrecaptured §1250 gain (depreciation on buildings) | Ordinary rate, capped at 25% federal | IRC §1(h)(1)(E), as of October 8, 2026 |
| Net investment income tax | 3.8% above $250,000 MAGI married ($200,000 single), not indexed | IRC §1411, as of October 8, 2026 |
| Home sale exclusion | $250,000 single, $500,000 married; not for depreciation after May 6, 1997 | IRC §121(b) and (d)(6), as of October 8, 2026 |
| California | All gain taxed as ordinary income, up to 13.3% with the 1% surcharge over $1 million | FTB 2026 tax rate schedules (R&TC §17041, §17043), FTB Tax News, October 2026 |
| California county transfer tax | $1.10 per $1,000 of price (some cities add their own) | R&TC §11911, as of October 8, 2026 |
The engine also carries all 50 states plus DC and several city transfer taxes (Los Angeles Measure ULA, San Francisco, Washington REET and others). Every figure is an estimate; the seller's CPA confirms the real one.
Cash at closing vs an installment payout
A cash sale puts the whole gain on one tax return. An installment payout taxes the gain as the money arrives, so more of it can land in the 15% bracket instead of 20%, under the 3.8% surtax line, and in lower state brackets. On a large gain that difference is often six figures, and it is what gives the agent room when a buyer comes in under the ask.
There are two ways to take the payout. With a seller note, the seller carries the buyer's loan and takes the buyer's credit risk. With a structured installment sale, the buyer pays in full at closing, normal financing, and the payments come from an assignment company funded by a fixed annuity from a life insurer, so the seller holds no note on the buyer. The trade-offs: the payments are fixed and cannot be sped up or cashed out, they depend on the insurer's ability to pay, and the structure has to be written into the purchase contract before closing. Once the money sits at closing or with a 1031 qualified intermediary, it is too late. See structured sale vs seller financing.
Seller net sheet questions
What is a seller net sheet?
A seller net sheet estimates what the seller walks away with: the sale price minus commission, escrow and title, transfer tax, other costs and the loan payoff. Most stop at cash at closing. This one goes on to the estimated income tax on the gain, which is often the largest cost of the sale.
How do you calculate net proceeds from the sale of a house?
Net proceeds equal the sale price minus selling costs minus the loan payoff. Net after tax subtracts the federal capital gains tax, any depreciation recapture, the 3.8% net investment income tax and state tax on the gain. A primary home first takes the $250,000 or $500,000 exclusion (IRC §121(b), as of October 8, 2026).
Does paying off the mortgage reduce the capital gains tax?
No. The payoff reduces the seller's cash, not the gain. Gain is price minus selling costs minus adjusted basis. A seller who refinanced and took cash out can owe more tax than the cash they receive at closing.
What is net to seller?
Net to seller is the cash the seller receives at closing after costs and loan payoffs. Net to seller after tax subtracts the estimated tax on the sale, which this calculator shows line by line.
Why does depreciation matter on a seller net sheet?
Every dollar of depreciation taken on a rental lowers the basis and comes back at sale as unrecaptured §1250 gain, taxed up to 25% federal (IRC §1(h)(1)(E), as of October 8, 2026). The home sale exclusion never covers depreciation taken after May 6, 1997.
Can an installment sale raise the seller's net?
Often, on a large gain. The same price taxed over several years can cost less in total tax than one big year. The seller collects over time instead of at closing, and interest on the payments is extra ordinary income. The comparison above shows both side by side.
Is this tax advice?
No. It is an educational estimate from the inputs you enter, using the tax engine's 2026 federal tables and current state rates. The seller's CPA should confirm any figure before the seller relies on it.
For agents: next steps
If the after-tax number is what is holding your seller back, Hans can run the real figures with the seller and their CPA before the contract is signed. Want Hans to run your seller's real number? For the playbook on bringing it up at the listing appointment, get Save the Deal (free). Sellers can also send their agent this page.
Related tools: depreciation recapture calculator, California capital gains tax calculator, seller financing calculator, installment sale calculator.
Educational estimate only, not tax, legal or investment advice. Tax figures use the 2026 federal tables in the engine (IRS Rev. Proc. 2025-32), the state you choose and the inputs you enter; interest on installment payments, time value of money, state-specific credits and AMT nuances beyond the engine are not modeled. The seller's CPA should confirm every figure. Hans Goldstein is a licensed insurance agent (CA Insurance License #4273294, NPN 20602398); insurance products offered through Goldstein & Co. LLC dba Goldstein Insurance Services. If a structured installment sale is placed through him, he is paid a commission by the insurer that funds it.