Washington REET Tax Calculator Guide for Home Sellers

How Washington REET Excise Tax Affects Your Seattle Home Sale

When calculating your net proceeds from selling a home in Seattle, property taxes are not the only state level financial obligation. Washington state assesses a Real Estate Excise Tax, commonly known as REET, on all real property sales.

Understanding how REET rates are structured in King County helps you estimate your final seller settlement proceeds accurately.

How the Washington REET Structure Works

Graduated State Tax Rates Washington state utilizes a tiered tax structure where the excise tax rate increases based on the total sale price of the property.

• Tiered Calculations: Lower purchase price portions are taxed at lower percentage tiers, while higher price portions are taxed at higher rate brackets.
• Automatic Escrow Deduction: The excise tax is paid at closing directly from seller proceeds through the escrow closing agent before net funds are disbursed.

Local King County and City Additions In addition to the state REET portion, King County and local municipalities add local excise tax percentages to funding local public infrastructure.

• Combined Tax Impact: Combining state and local excise taxes results in a total tax liability that sellers must account for in their net proceeds calculations.

Frequently Asked Questions

Who pays the Real Estate Excise Tax in Washington state? By legal custom in Washington state, the seller is responsible for paying the Real Estate Excise Tax at closing unless contractually negotiated otherwise.

Is REET tax tax deductible on federal income taxes? REET is generally treated as a selling expense that reduces your capital gain on the property sale rather than a direct itemized tax deduction. Consult your CPA for tax advice.

Does selling a condo incur the same REET rates as a house? Yes, the graduated REET calculation applies to all residential property sales, including single family homes, condominiums, and townhomes.

Need help estimating your net proceeds after REET taxes and closing costs? Contact our real estate specialists today for a personalized seller net sheet!

Call: (425) 920-3959