Washington · Seattle-Tacoma-Bellevue, WA metro area

Buying a home in Tacoma, Washington

In Tacoma, the median value of owner-occupied homes is $479,600, Pierce County's effective property tax rate is 0.91%, a purchase mortgage carried a median $8,972 in total loan costs in 2025, and median gross rent is $1,676 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Tacoma home costs, fact by fact

About Tacoma

Tacoma lies in the Seattle-Tacoma-Bellevue, WA metro area, ranked 15th among U.S. metro areas, and is an incorporated city in Washington. HUD's Fair Market Rent for a two-bedroom in Pierce County is $2,064, while median gross rent is $1,676 per month. Owners estimate the median home value at $479,600, which is not a sale price, and 55.8% of homes are owner-occupied.

Calculate for Washington

If you buy

Washington state transfer tax

Real estate excise tax (REET): Sales through Dec 31, 2026: 1.10% up to $525,000, 1.28% from $525,000 to $1,525,000, 2.75% from $1,525,000 to $3,025,000, 3.00% above; farm, agricultural and timber land pay a flat 1.28%. Change the price: the amount is recalculated instantly.

Price$605,600
State transfer tax$6,806.68
Share of the price1.12% of the price
Who paysThe seller

Default price: the Washington median value of owner-occupied homes, $605,600 (Census ACS 2025). Rule: Graduated like an income tax: each rate applies only to the slice of the price inside its bracket. These thresholds apply to sales dated through December 31, 2026; from January 1, 2027 they become $551,000, $1,551,000 and $3,051,000. Farm, agricultural and timber land pay a flat 1.28%. The sale date decides which column applies. Plus a local real estate excise tax of 0.50% of the whole price in Seattle (Washington Department of Revenue, rates effective May 1, 2026). Who pays: The law makes the tax the obligation of the seller (RCW 82.45.080). If the seller does not pay, the buyer is responsible and unpaid tax can become a lien on the property. Not included: other county and city transfer taxes, recording fees, title insurance and lender charges. Washington transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Washington state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Tacoma

How much is property tax in Tacoma?

Homeowners in Pierce County pay a median $4,770 a year in property tax, 0.91% of the county median home value of $526,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Tacoma?

Home-purchase mortgages in Pierce County carried median total loan costs of $8,972 in 2025; half of the 8,685 loans fell between $5,355 and $14,973 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Tacoma?

Washington taxes each sale with a graduated state real estate excise tax of 1.1% on the first $525,000, 1.28% up to $1,525,000, 2.75% up to $3,025,000 and 3% above that for sales through December 31, 2026, plus a local tax such as Seattle's 0.5%. The law makes it the seller's obligation.

Is it cheaper to rent or buy in Tacoma?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Tacoma ($479,600) equals 23.8 years of the median gross rent ($1,676 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Tacoma?

Across Washington, the main hazards for home insurance are earthquake, landslide, flood and wildfire. In Washington, Seattle's Office of Emergency Management calls earthquakes the most serious hazard facing Seattle and says the Seattle region ranks first in the country for the number of hazards it faces.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Washington rules that apply in Tacoma

Other large cities in Washington

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Sources

Washington · All states · Federal guides