Assuming no strange exceptions occur, how much withholding should there be on a real property transaction between two California residents on a sale of $$500,000?($Assume no foreign taxpayers, backup withholding, etc.$)$

$$5,000$; or $1\%$

$$12,500$; or $2\mathrm{.}5\%$

$$16,667$; or $3$ and $1/3\%$

$$66,500$; or $13\mathrm{.}3\%$ for the highest marginal tax range