Washington's Real Estate Excise Tax (REET) uses a graduated state rate with brackets at $525,000, $1,525,000, and $3,025,000, plus a King County local REET on top. The seller is the default taxpayer in most Seattle residential transactions, with the tax collected and remitted through escrow at closing.

How much is Washington REET when you sell a home in King County?

Washington's Real Estate Excise Tax is a graduated state tax on the sale of real property, and King County adds its own local REET on top of that. For a Seattle seller, the total transfer tax is the state portion plus the King County portion, calculated against your final negotiated sale price. The seller is the default taxpayer under Washington law, and escrow handles collection and remittance at closing.

If you're preparing to sell in Seattle, understanding REET is not optional. This tax affects your net proceeds directly, and because Washington's rate structure is tiered, a sale price just above a bracket threshold costs meaningfully more than one just below it. I walk every seller I work with through these breakpoints before we even talk about a list price.

How Washington's Graduated REET Rate Structure Works

Washington does not use a flat transfer-tax rate. According to the Washington State Department of Revenue, the state REET is calculated in tiers based on the taxable selling price. Each tier applies only to the portion of the sale price within that bracket, similar to how income tax brackets work.

An important detail most articles get wrong: these thresholds are not fixed. Washington adjusts them for inflation every four years. The graduated structure took effect January 1, 2020, and the thresholds were adjusted effective January 1, 2023. The current schedule runs through December 31, 2026, with the next adjustment scheduled for January 1, 2027. If you're reading this near or after that date, verify the current figures with the Department of Revenue.

That structure matters enormously in Seattle. A significant share of homes here sell above $525,000, and a meaningful number of listings in neighborhoods like Queen Anne, Magnolia, Capitol Hill, and Ballard push past $1,525,000. Every time a sale price crosses a threshold, the portion above that line is taxed at the higher rate.

State REET Brackets at a Glance

Source: Washington State Department of Revenue, REET rate schedule effective January 1, 2023 through December 31, 2026. Thresholds are adjusted for inflation every four years. Verify current rates before closing.

The practical takeaway: a seller at $520,000 and a seller at $545,000 face different effective tax burdens, even though the dollar difference in sale price is modest. That bracket awareness is something I factor into pricing conversations with every Seattle seller I represent.

King County's Local REET Layer

On top of the state rate, King County administers its own local REET for sales within the county. Seattle is in King County, so both taxes apply to virtually every standard residential sale here.

The county portion is also calculated against the taxable selling price and is collected through the same escrow and recording process as the state tax. The combined state-plus-county obligation is what your closing statement will reflect.

Your escrow or title company prepares the REET Affidavit, calculates the total due, and remits it as part of the recording process. You don't write a separate check to the state after closing, it comes out of proceeds at the table.

What Seattle Sellers Need to Know Before Listing

The Tax Is Based on the Final Negotiated Price, Not the List Price

The Department of Revenue is clear: REET is calculated on the taxable selling price, which is the final price in your purchase and sale agreement as reflected in escrow. If your list price is $1,515,000 and you accept an offer at $1,545,000, you've crossed the $1,525,000 bracket. The portion above that line is taxed at the higher tier rate. That's not a hypothetical, it's a scenario I've seen play out in real transactions in this market.

Who Pays REET in Washington?

Under Washington law, the seller is the default taxpayer for REET. That said, like many closing costs, the allocation of REET between buyer and seller is something that can be addressed in the purchase and sale agreement. The statutory default is seller-paid, but confirm the treatment in your specific contract. Your escrow officer and real estate attorney can advise on how it's documented in your transaction.

The REET Affidavit Is a Required Document

Every taxable transfer in Washington requires a Real Estate Excise Tax Affidavit. This document is part of the county recording process and is prepared by your title or escrow company. It reports the transaction, establishes the taxable selling price, computes the tax, and triggers the recording of the deed.

Per the Department of Revenue, the affidavit must be submitted before the deed can be recorded. In Seattle-area transactions, this is handled seamlessly through escrow, but sellers should know it exists and review it before signing.

Exemptions Exist, But Don't Assume

Washington does allow certain transfers to be exempt from REET or subject to special handling. Common examples include some gifts, inheritances, and certain entity-to-entity transfers. But an exemption is not automatic, it must be documented and claimed properly on the affidavit.

If you believe your transfer may qualify for an exemption, verify it with your escrow officer, a real estate attorney, or the Department of Revenue before closing. Assuming an exemption applies without documentation can create recording delays or tax liability after the fact.

Condos and Townhomes Are Subject to REET Too

REET applies to the sale of real property in Washington broadly, that includes single-family homes, condos, and townhomes. If you're selling a condo in Belltown or a townhome in Fremont, the same graduated rate structure applies. The property type doesn't change the bracket math; the sale price does.

One exception worth knowing: agricultural land and timberland are excluded from the graduated structure and are taxed at a flat 1.28% state rate. That rarely applies to a Seattle residential sale, but it comes up in transactions involving rural acreage elsewhere in the state.

Pricing Near a Threshold: A Real Conversation to Have

One of the more nuanced conversations I have with Seattle sellers is about pricing strategy near bracket thresholds. If a home is likely to sell in the $510,000 to $545,000 range, or anywhere near $1,525,000, the REET implications of landing above versus below the threshold are worth factoring into your pricing and negotiation strategy. This isn't a reason to underprice, but it's a reason to understand the math before you're at the closing table.

Your specific REET obligation depends on your final negotiated price, the county-level local rate, and whether any exemptions apply. That's exactly the kind of calculation your escrow officer will run, and the kind of context I make sure my clients have before we list.

Frequently Asked Questions About REET in King County

How much REET do I pay when I sell a house in Seattle?

Your total REET is the state graduated tax plus King County's local REET, both calculated against your final sale price. The state portion uses tiered rates with brackets at $525,000, $1,525,000, and $3,025,000, per the Washington State Department of Revenue. Because Seattle home prices frequently cross those thresholds, the exact amount varies significantly by price point. Your escrow officer will calculate the precise figure based on your closing statement.

Who pays Washington REET in King County, buyer or seller?

Under Washington law, the seller is the default taxpayer for REET. However, the allocation can be negotiated between the parties in the purchase and sale agreement, so confirm how it's handled in your specific contract. In most Seattle residential transactions, the seller's proceeds are reduced at closing to cover REET, which escrow collects and remits on the seller's behalf.

What are the current Washington REET brackets?

The state REET brackets apply to the taxable selling price in tiers: 1.10% on $525,000 or less; 1.28% from $525,000.01 to $1,525,000; 2.75% from $1,525,000.01 to $3,025,000; and 3.00% above $3,025,000. This schedule took effect January 1, 2023 and runs through December 31, 2026. King County's local REET applies on top of the state rate.

Washington adjusts these thresholds for inflation every four years, with the next adjustment scheduled for January 1, 2027. Always verify current rates with the Department of Revenue or your escrow officer before closing.

Is REET paid through escrow at closing in King County?

Yes. In King County, REET is collected and remitted through the escrow and title process as part of recording the deed. Your title or escrow company prepares the required REET Affidavit, calculates the total tax due, and handles payment before the deed is recorded. Sellers don't pay REET separately after closing, it comes out of proceeds at the closing table.

Are there REET exemptions for inherited property or gifts?

Washington does allow certain transfers to be exempt from REET, including some inheritances and gifts, but exemptions are not automatic. They must be properly documented and claimed on the REET Affidavit at the time of recording, per the Department of Revenue. If you believe your transfer may qualify, consult your escrow officer or a real estate attorney before closing, don't assume the exemption applies without verification.

Does REET apply to condos and townhomes in Seattle?

Yes. Washington's REET applies to all real property transfers, including condos and townhomes. The same graduated state rate structure and King County local REET apply regardless of property type. The tax is based on the taxable selling price in your purchase and sale agreement, not the property type.

What documents are needed for the REET affidavit in King County?

The REET Affidavit is prepared by your title or escrow company and must be submitted as part of the deed recording process in King County. It requires the property legal description, the taxable selling price, the parties' information, and documentation of any claimed exemptions. Your escrow officer will handle the preparation, but sellers should review and sign the affidavit before closing.

Washington's graduated REET structure means the transfer-tax math for a Seattle seller isn't a single number, it depends on where your final sale price lands relative to the bracket thresholds, plus King County's local layer on top. Knowing those breakpoints before you list can inform your pricing strategy and eliminate surprises at closing.

I make sure every seller I work with understands exactly how REET affects their transaction before we go to market. If you're thinking about selling in Seattle and want to understand how the full picture fits together, schedule a consultation and let's run through it together.

About Kim Reidy

Kim Reidy is a Senior Broker and Director of Relocation at Pointe3 Real Estate in Seattle who has been helping corporate transferees and individuals find the right neighborhood since 2010. A Certified Negotiation Expert (CNE) and Certified Buyer Agent Expert (CBAE), she's known as Seattle's "neighborhood whisperer."

Pointe3 Real Estate · (206) 237-6391

Equal Housing Opportunity. Kim Reidy is licensed in Washington State, regulated by the Washington State Department of Licensing. This article is general information only and is not legal, tax, or financial advice. Verify your specific REET obligation and closing costs with your escrow officer, real estate attorney, or tax advisor before closing. Property search powered by RealScout pulling live MLS data; all information should be independently reviewed and verified for accuracy. Data provided for personal non-commercial use only.