The Real Estate Excise Tax (REET) is a tax imposed on the sale of real property in the state of Washington. It is typically paid by the seller at the time of closing, though in some circumstances the buyer may become responsible if the tax is unpaid.
The Real Estate Excise Tax (REET) is a tax imposed on the sale of real property in the state of Washington. It is typically paid by the seller at the time of closing, though in some circumstances the buyer may become responsible if the tax is unpaid.
As of January 1, 2025, the selling price thresholds and tax rates are as follows:
Less than or equal to $525,000 is 1.1%
Greater than $525,000 and less than or equal to $1,525,000 is 1.28%
Greater than $1,525,00 and less than or equal to $3,025,000 is 2.75%
Greater than $3,025,000 is 3.0%
Note: These rates apply to most residential property sales. Special rules may apply for certain commercial or agricultural properties.
In addition to the state tax, local jurisdictions (counties and cities) may impose their own REET. These local rates are typically 0.25% to 0.5%, depending on your location.
To find your county’s current REET rate, visit the Washington Department of Revenue’s REET page and look for the Local REET Rates PDF.
Revenue from the REET helps fund a variety of essential public services, including:
Local transportation and road maintenance
Public safety services
Parks and schools
Local infrastructure projects
The seller is responsible for paying the REET
It is due at the time of closing and is typically collected by the county
If not paid, the buyer may be held liable, and a lien may be placed on the property
The REET is not the only tax or fee associated with selling property. You may also need to consider:
Capital gains tax if you are selling at a profit and haven’t lived in the property for at least 2 of the past 5 years
Other local transfer taxes or fees
Federal tax implications for investment properties or large gains
If you’re unsure how REET applies to your sale or how to calculate your total tax obligation, consult with a real estate attorney, accountant, or closing agent.
.avif)
