Selling your home soon? Make sure you know about real estate excise tax (REET)

Many homeowners are caught off-guard by real estate excise tax when they sell their home. Educate yourself and find out the basics here!

What is Real Estate Excise Tax?

Real estate excise tax (REET) is applied to the sale of real property in Washington State. Excise tax is generally paid by the seller, but in very rare cases can be partially covered by the buyer. Real estate excise tax exemptions include affordable housing, and the transfer of property between family members.

What is REET used for?

Real estate excise tax in Washington State is used for community expenses such as local government services, schools, roads, and public safety, to name a few.

Tax Rates

Real estate excise tax in Washington State can vary between 1.1% - 3% (see chart below). In most cases, this is an unavoidable tax that all real estate sellers must pay, and that is something that a homeowner should know up front.

Example:

If you are selling a home for $700,000, the first $525,000 will be taxed at 1.1%, while the remaining $175,000 will be taxed at 1.28%.

State vs County Taxes

On top of the Washington State real estate excise tax rates, each county or local government in Washington State also charges their own REET.

County and local government real estate excise tax (REET) usually charge an additional 0.25 - 0.50%.

Find County & Local Government Charges Here

Use this REET calculator to see what you will pay

To make things clear, you should always speak with a tax professional when seeking advice. This is general information about real estate excise tax, and is not advice of any kind.

If you have questions about the cost to sell a home, reach out to me and I will be happy to assist!

Shane

The Real Estate Route