What REET is
The real estate excise tax (REET) is Washington's tax on the sale of real property. It is paid by the seller in most sales and collected by the county treasurer when the real estate excise tax affidavit is filed at closing. It has two parts: a state tax, which is graduated, and a local tax, which in Seattle is a flat 0.5%.
The state brackets
Since January 1, 2020, the state portion has been graduated — each slice of the price is taxed at its own rate, like income-tax brackets. The thresholds were adjusted on January 1, 2023 and apply through December 31, 2026:
| Portion of the sale price | State rate |
|---|---|
| Up to $525,000 | 1.10% |
| $525,000.01 to $1,525,000 | 1.28% |
| $1,525,000.01 to $3,025,000 | 2.75% |
| Above $3,025,000 | 3.00% |
From January 1, 2027, the thresholds rise to $551,000, $1,551,000 and $3,051,000. Agricultural and timberland sales use a flat 1.28%.
The local portion
Cities and counties can add up to 0.5% in local REET (two 0.25% pieces, often called REET 1 and REET 2), which fund capital projects. Seattle levies the full 0.5%. Unlike the state tax, the local tax applies as a flat percentage of the whole price.
Worked examples in Seattle
$900,000 home: state tax = $525,000 × 1.1% ($5,775) + $375,000 × 1.28% ($4,800) = $10,575. Local tax = $900,000 × 0.5% = $4,500. Total REET: $15,075, about 1.68% of the price.
$2,000,000 home: state tax = $5,775 + $1,000,000 × 1.28% ($12,800) + $475,000 × 2.75% ($13,062.50) = $31,637.50. Local tax = $10,000. Total: $41,637.50, about 2.08%.
Because the brackets are marginal, there is no cliff at each threshold — only the part of the price above each line pays the higher rate.
Who pays and when
By law and custom the seller pays REET, and it is usually deducted from the seller's proceeds at closing. If the tax is not paid, it becomes a lien on the property, so escrow companies collect it before recording. There is also a small affidavit processing fee.
Exemptions
Certain transfers are exempt, including many gifts, transfers between spouses in a divorce, inheritances, and transfers into a revocable trust. Each exemption has specific rules and must be claimed on the affidavit with the right code.
How REET fits Seattle's tax picture
Washington has no income tax on wages, which is why sales tax (10.55% in Seattle for 2026), property tax and REET carry more weight. For higher-priced homes the graduated REET can be larger than in many other states — compare it with Texas, which has no transfer tax, or Georgia, where the transfer tax is 0.1%. It is still far below New York City's combined transfer and mansion taxes.
Planning points
- Budget REET as part of selling costs, alongside commissions and title charges.
- For sales that may close around January 1, 2027, check which threshold schedule applies.
- Remember that REET applies to the full sale price, not the gain.
The Washington REET Calculator applies the brackets and Seattle's local rate to any price.
Try the calculator
Run your own numbers with the Washington Real Estate Excise Tax (REET) Calculator. It uses the rules explained in this guide and shows the reasoning behind every result.
Sources
Disclaimer
This guide is for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Rules change; confirm current figures with the official sources above or a licensed professional.