Washington's Real Estate Excise Tax and Your Sale Proceeds
Program and regulatory figures verified September 19, 2026. Details change; confirm your scenario with us.
This is a seller's tax, which is exactly why a lender should be the one explaining it. It comes out of the money that repays your loan.
The schedule, and the graduated part people miss
Washington's state REET is graduated, not flat. Each portion of the selling price is taxed at its own rate, the way income tax brackets work. A $700,000 sale is not taxed at 1.28% across the board; the first $525,000 is taxed at 1.10% and only the balance at 1.28%.
Through December 31, 2026 the brackets are 1.10% at or below $525,000, 1.28% above that to $1,525,000, 2.75% above that to $3,025,000, and 3.0% above $3,025,000.
Qualified sales of agricultural and timberland are the exception and stay at a flat 1.28% regardless of price.
What happens on January 1, 2027, stated honestly
The thresholds move up about $26,000 each: to $551,000, $1,551,000 and $3,051,000. The rates stay at 1.1%, 1.28%, 2.75% and 3.0%.
Under RCW 82.45.060 these thresholds are adjusted every four years by CPI, which is why the schedule in force since January 2023 runs its full cycle through 2026.
Now the part other pages will not tell you: for a typical residential sale this change is small. What moves is a roughly $26,000 band of price from the 1.28% bracket into the 1.10% bracket, worth about $47. It is worth knowing. It is not worth rescheduling a closing over, and anyone suggesting otherwise is selling urgency rather than advice.
The local half, which can be as large as a bracket
On top of the state tax, any city, town or county may impose a 0.25% local REET under RCW 82.46.010, known as the first quarter percent. A jurisdiction fully planning under the Growth Management Act may impose a second 0.25% under RCW 82.46.035. Most GMA-planning counties levy both, for a combined 0.50%.
Half a percent sounds minor next to 1.10%. On a $700,000 sale it is $3,500, which is roughly the same order as the difference between the first and second state brackets. It belongs in the arithmetic rather than as an afterthought.
Local rates vary and are confirmed at closing for the specific jurisdiction rather than assumed from a county name.
Who pays, and the clause worth reading twice
The Department of Revenue's own framing: usually the seller pays this tax, but if they do not, the buyer is responsible.
For a buy-before-you-sell borrower that is relevant in both directions, since you are a buyer on one transaction and a seller on the other within a short window. It is a question for your closing agent on each, not something to assume symmetrically.
Why a lender is writing about a seller's tax
Because of what it does to the number our structures depend on.
A bridge loan is repaid from the proceeds of the departing home. A recast is funded by them. The down payment on the next house may come from them. Every one of those is net of excise tax, and in Washington that deduction is larger than in any other state we work in.
On a Seattle-typical $727,359 sale, state REET is about $8,365 and a 0.50% local adds about $3,637, so roughly $12,000 or 1.65% of the price. A plan built on the gross sale price overstates available cash by that amount. Worked all the way through on the net proceeds page.
And what REET does not touch
Excise tax is imposed on sales of real property. Recording a deed of trust is not a sale.
So reaching your equity through financing, whether a bridge loan, a home equity line or a refinance, triggers no state excise tax in Washington. That is a genuine advantage and it is the reverse of states where the loan instrument is taxed. See line versus term.
Your closing agent calculates the tax on the actual transaction. This page explains the schedule; it does not determine your liability.
Excise tax treatment of a specific transaction, rent-cap exemptions, and relief eligibility are legal and tax questions. Your closing agent, your county assessor, your CPA or a Washington attorney own those answers. We flag them because they change the numbers we underwrite.
Frequently asked questions
Is Washington's excise tax graduated or flat?
Graduated. Each portion of the selling price is taxed at its own rate: through December 31, 2026 that is 1.10% at or below $525,000, 1.28% above that to $1,525,000, 2.75% to $3,025,000 and 3.0% above. Qualified agricultural and timberland sales are the exception at a flat 1.28%.
What are Washington's 2027 excise tax thresholds?
$551,000, $1,551,000 and $3,051,000, effective January 1, 2027, with rates unchanged at 1.1%, 1.28%, 2.75% and 3.0%. Under RCW 82.45.060 thresholds are adjusted every four years by CPI. For a typical residential sale the practical difference from the 2026 schedule is roughly $47.
How much local real estate excise tax does Washington add?
Up to 0.50%. Any city, town or county may impose 0.25% under RCW 82.46.010, and a jurisdiction fully planning under the Growth Management Act may impose another 0.25% under RCW 82.46.035. Most GMA-planning counties levy both.
Does Washington charge excise tax when I refinance?
No. REET is imposed on sales of real property, and recording a deed of trust is not a sale. Refinancing, taking a bridge loan or opening a home equity line triggers no Washington excise tax.
Can a buyer end up owing Washington excise tax?
Yes, as a backstop. The Department of Revenue states that usually the seller pays the tax, but if they do not, the buyer is responsible. Your closing agent handles the calculation and collection on the actual transaction.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Excise tax treatment, rent-cap exemptions, and county relief thresholds change and depend on your facts; your closing agent, your county assessor, your CPA or a Washington attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.