text: The question is about withholding, not tax liability, and the answer depends on the state you're in.  If you are not a non-resident alien, the Federal government with not withhold any taxes, regardless of how long you lived in the property.  State withholding varies from state to state. Here in CA, if you don't have an exemptable reason  3 1/3% of the SALE PRICE of the property will be withheld.