State Taxes Beyond FIRPTA: Florida's Tax-Free Advantage
FIRPTA is a federal withholding tax. But depending on which DVC resort you own, you may also face state-level tax obligations. Here is how each DVC resort location breaks down.
Florida: No State Income Tax
The majority of DVC resorts are at Walt Disney World in Florida. Florida has no state income tax. If you own a contract at Saratoga Springs, Riviera, Grand Floridian, Polynesian, Bay Lake Tower, Beach Club, BoardWalk, Animal Kingdom, Copper Creek, Boulder Ridge, or Old Key West, you face only federal FIRPTA withholding. No state return, no state withholding, no state refund to chase. This is one of the most tax-friendly locations for DVC ownership from an international seller perspective.
Hawaii: HARPTA on Top of FIRPTA
Aulani, Disney's Hawaiian resort, triggers Hawaii's HARPTA withholding at 7.25% on top of federal FIRPTA at 15%. Total withholding at closing: 22.25%. Both amounts are refundable through separate filings — a federal 1040-NR and a Hawaii state return (Form N-15 or the faster N-288C tentative refund application). See our HARPTA guide for Aulani sellers for complete details.
South Carolina: Hilton Head
Disney's Hilton Head Island Resort is in South Carolina. South Carolina has a state income tax, and non-residents selling property there may owe a small state tax on the gain. South Carolina also has a non-resident withholding requirement for real property sales. The amounts involved on a typical DVC contract are modest, but you should discuss your South Carolina obligation with a tax professional if you own a Hilton Head contract.
California: Grand Californian
Disney's Grand Californian Hotel and Spa at Disneyland is in California. California has significant state income taxes and its Franchise Tax Board aggressively pursues non-resident tax obligations. California imposes withholding on non-resident property sales and may require a California state return. If you own a Grand Californian contract, factor California state tax into your planning before you sell.
Florida Again: Vero Beach
Disney's Vero Beach Resort is in Florida, so the same no-state-income-tax advantage applies as for Walt Disney World resorts.
