Washington

State rate

Starting Jan. 1, 2020, sales of real property are subject to a graduated rate structure for the state portion of REET. However, sales of real property classified as "agricultural land”, or "timberland" (including structures) are considered classified land and will remain subject to a flat rate of 1.28% for the state portion of REET.

Rate brackets

Graduated REET Structure effective Jan. 1, 2023 for the state portion of REET For transfers Jan. 1, 2020 - Dec. 31, 2022 see the tax calculator above. Sale price thresholds | Tax rate | $525,000 or less | 1.10% | $525,000.01 - $1,525,000 | 1.28% | $1,525,000.01 - $3,025,000 | 2.75% | $3,025,000.01 or more | 3% |

Announced change, not yet in force

Per RCW 82.45.060, the thresholds for the graduated state portion of REET is adjusted every four years. The selling price thresholds and tax rates for sales beginning January 1, 2027 are: For the portion of the selling price that is: | Real estate excise tax rate | Less than or equal to $551,000 | 1.1% | Greater than $551,000 and less than or equal to $1,551,000 | 1.28% | Greater than $1,551,000 and less than or equal to $3,051,000 | 2.75% | Greater than $3,051,000 | 3.0% |

Who pays

All sales of real property in Washington state are subject to REET, unless a specific exemption applies. Usually, the seller pays this tax, but if they don't, the buyer is responsible. If the tax isn't paid, it can create a lien on the property itself.

Local add-on

Attention: The local REET must be calculated and added to the graduated state rate for the total tax due.

Citation

The transfer of controlling interest in an entity that owns real property in Washington state, is treated as a taxable sale of that real property for the purposes of REET under Chapter 82.45 RCW (WAC 458-61A-101).