In short
Washington taxes each sale with a graduated state real estate excise tax (REET): 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, per the Department of Revenue for sales through December 31, 2026. Seattle adds 0.5% local tax. These thresholds rise on January 1, 2027.
What is the REET and who pays it?
REET is a tax on the sale of real property. The Department of Revenue says all sales are subject to it unless an exemption applies. The state law makes the tax “the obligation of the seller” (RCW 82.45.080). The Department adds that if the seller does not pay, the buyer is responsible, and unpaid tax can become a lien on the property. King County’s Recorder says the seller typically pays.
The price used is the full consideration, including the loan balance. The Department’s example: a $250,000 house bought with $50,000 down and a $200,000 loan is taxed on $250,000.
The tax is due to the county treasurer on the date of sale, even if the deed is recorded later. In King County you file the REET affidavit with the Recorder’s Office, and the tax must be paid before the deed is recorded.
What are the state REET brackets?
The state tax is graduated like an income tax: each rate applies only to the slice of the price inside its bracket (RCW 82.45.060). The statute lets the Department adjust the thresholds every fourth year, and it has published both the current and the next set.
| Slice of the selling price | Sales through Dec. 31, 2026 | Sales from Jan. 1, 2027 |
|---|---|---|
| First slice | up to $525,000 at 1.10% | up to $551,000 at 1.10% |
| Second slice | $525,000 to $1,525,000 at 1.28% | $551,000 to $1,551,000 at 1.28% |
| Third slice | $1,525,000 to $3,025,000 at 2.75% | $1,551,000 to $3,051,000 at 2.75% |
| Above | over $3,025,000 at 3.00% | over $3,051,000 at 3.00% |
Farm, agricultural and timber land pay a flat 1.28% state rate instead. The date of the sale decides which column applies, so a sale dated in 2026 uses the left column even if the deed is recorded in 2027.
What does Seattle add?
The state tax is only part of the bill. Cities and counties may add local REET (RCW 82.46.010 and 82.46.035, up to 0.25% each for a city that plans under the Growth Management Act). The Department’s local rate table, effective May 1, 2026, lists 0.50% for Seattle (location code 1726) and for most King County cities, with 0.25% in Skykomish. Local REET is a flat percentage of the whole price. The Department states that the local tax “must be calculated and added to the graduated state rate.”
What does it cost? Worked examples in Seattle
These are examples, not quotes. They use the state brackets for sales through 2026 plus Seattle’s 0.50%.
| Selling price | State tax | Seattle local tax (0.5%) | Total REET | Share of price |
|---|---|---|---|---|
| $600,000 | $6,735.00 | $3,000.00 | $9,735.00 | 1.62% |
| $1,000,000 | $11,855.00 | $5,000.00 | $16,855.00 | 1.69% |
| $2,000,000 | $31,637.50 | $10,000.00 | $41,637.50 | 2.08% |
How the $1,000,000 line works: $525,000 × 1.1% = $5,775, plus $475,000 × 1.28% = $6,080, giving $11,855 state tax. Add $5,000 local tax.
With the 2027 thresholds the same state tax falls by $46.80 at $600,000 and $1,000,000, and by $429.00 at $2,000,000 (for example, $1,000,000 gives $6,061 + $5,747.20 = $11,808.20).
What fees and penalties apply?
King County charges $5 plus the tax to process a taxable affidavit and $10 for a non-taxable one; a minimum of $10 in fees or tax is due. If the tax is not paid within one month of the sale, the Department adds a penalty of 5% of the tax, then another 5% after two months and another 10% after three months (20% in all), plus interest. The 2026 interest rate is 6%.
Which sales are exempt?
The Department lists the most used exemptions, and the full list is in WAC 458-61A. They include:
- gifts and inheritances;
- community property transfers and transfers under a divorce, separation or invalidity decree;
- foreclosure, deed in lieu of foreclosure and contract forfeiture;
- transfers to or from tenants in common and joint tenants;
- certain affordable-housing, low-income and self-help housing transfers.
You claim an exemption by writing its code in the affidavit. A gift also needs a signed supplemental statement. The Department adds a $5 affidavit processing fee when an exemption is claimed.
For all the other costs of a purchase, see closing costs in Washington. For the annual tax on a home, see Washington property tax. The Seattle guide covers the city. See also the escrow account guide.
Frequently asked questions
Does Washington have a real estate transfer tax?
Yes. It is called the real estate excise tax. The state portion is graduated from 1.1% to 3%, and cities and counties add a local portion, which is 0.5% in Seattle.
Who pays the REET in Washington?
The law makes it the seller’s obligation. The Department of Revenue says that if the seller does not pay, the buyer is responsible, and the tax can become a lien on the property. A purchase contract may say how the parties split costs.
What is the REET on a $1 million Seattle home?
For a sale in 2026, it is $11,855 state tax plus $5,000 local tax, or $16,855. For a sale dated January 1, 2027 or later, the state tax is $11,808.20, using the new thresholds.
When do the Washington REET thresholds change?
On January 1, 2027, the Department of Revenue says the first threshold moves from $525,000 to $551,000, and the others rise by the same dollar amount. State law sets the next adjustment four years later.
Is a gift or inheritance subject to REET?
Gifts and inheritances are on the Department’s list of common exemptions. You must claim the exemption on the affidavit, and a gift needs a supplemental statement.
Compare with the other states: Real estate transfer tax by state.
More Washington guides
- Closing costs in Washington: what buyers and sellers pay
- How Washington property tax works, with a Seattle example
- Seller disclosure requirements in Washington
- Do you need a real estate attorney to close in Washington?
- Foreclosure process in Washington
- Home prices in Washington and Seattle: median value and trend
- First-time home buyer programs in Washington: WSHFC, Seattle
- How to verify a real estate license in Washington
- Community property and buying a home in Washington
- Natural hazards and home insurance in Washington
- Buying a rental property in Washington: tenant rules
Sources
- Real estate excise tax (Washington Department of Revenue) (consulted October 13, 2026)
- RCW 82.45.060, tax on sale of property (Washington Legislature) (consulted October 13, 2026)
- RCW 82.45.080, tax is seller's obligation (Washington Legislature) (consulted October 13, 2026)
- RCW 82.46.010, local real estate excise tax (Washington Legislature) (consulted October 13, 2026)
- RCW 82.46.035, additional local tax for capital projects (Washington Legislature) (consulted October 13, 2026)
- Local Real Estate Excise Tax Rates, effective May 1, 2026 (Washington Department of Revenue) (consulted October 13, 2026)
- Real Estate Excise Tax (King County Recorder's Office) (consulted October 13, 2026)