Guides · Selling
Washington's real estate excise tax, worked to the dollar
On an $850,000 Seattle sale closing in 2026 the excise tax is $14,185: $9,935 to the state on a graduated scale, plus $4,250 for Seattle's 0.50% local rate. The seller usually pays it, from the proceeds at closing. From 1 January 2027 the state bands move up, which takes $46.80 off most Seattle sales.
Why the answers online disagree#
Search this and the first page gives you several different numbers. Some quote a single percentage. At least one result on the first page still shows the bands from 2020. Hardly any mention that the bands change again on 1 January 2027.
The reason is that it is not one rate. It is a graduated state rate, which works like income tax, plus a flat local rate that depends on the city. A single percentage can only ever be an average, and an average is not your bill.
Here it is from the Department of Revenue's own tables, worked at real Seattle prices.
How it is calculated#
The state part is graduated. Each rate applies only to the slice of the price that falls inside its band. For sales in 2026 that is 1.10% on the first $525,000, 1.28% on the slice from $525,000 to $1,525,000, 2.75% on the slice from $1,525,000 to $3,025,000, and 3% on anything above that.
The local part is flat, it applies to the whole price, and it depends on the city. Seattle's rate is 0.50%. The Department of Revenue republishes its local rate table several times a year, so for any other city, check the current table rather than a number you found on a blog.
Add the two together and that is the tax.
Sources
- Real estate excise tax: rates and when it is due, Washington State Department of Revenue
- Local REET rates, effective 1 May 2026, Washington State Department of Revenue
Not sure whether to fix it or price it in?
Find out what it would actually sell forWorked at three Seattle prices#
$650,000. $5,775 on the first $525,000, plus $1,600 on the next $125,000, is $7,375 to the state. Seattle adds $3,250. The total is $10,625, about 1.63% of the price.
$850,000. $5,775, plus $4,160 on the next $325,000, is $9,935 to the state. Seattle adds $4,250. The total is $14,185, about 1.67%.
$1,200,000. $5,775, plus $8,640 on the next $675,000, is $14,415 to the state. Seattle adds $6,000. The total is $20,415, about 1.70%.
The effective rate barely moves across that range, which is why a single percentage works as a rule of thumb. It is not good enough for a net sheet, where the actual figure belongs.
What changes on 1 January 2027#
The state bands are adjusted every four years under RCW 82.45.060. For sales from 1 January 2027 they move up to $551,000, $1,551,000 and $3,051,000. The rates themselves stay the same.
For any sale between $551,000 and $1,525,000, which covers most Seattle homes, the change takes exactly $46.80 off the state portion. On a $2,000,000 sale it takes off $429.
So it is not worth rearranging a sale around. The local rate is published separately, on its own schedule, and could move independently.
Sources
- RCW 82.45.060, tax rates and thresholds, Washington State Legislature
Who pays it, and when#
The Department of Revenue says the seller usually pays it, and that if the seller does not, the buyer becomes responsible. Left unpaid, it can become a lien on the property. In practice escrow takes it out of the seller's proceeds at closing.
It is due on the date of sale, not the date the deed is recorded, and penalties and interest are due if it is not paid within a month. Every sale also needs a real estate excise tax affidavit, signed by the parties and submitted with the deed. Your escrow officer prepares it, and you sign it with the rest of the closing paperwork.
Sources
What it is not#
It is not a capital gains tax. It is charged on the price, whether you made money on the house or not.
Washington's separate capital gains tax does not apply to real estate. Federal tax on any gain is separate again, and the home sale exclusion covers the gain on most people's main home. That is a question for an accountant rather than a broker.
Some transfers are exempt, such as certain gifts and inheritances. An ordinary sale is not. The exemptions are set out in chapter 458-61A of the Washington Administrative Code.
Sources
- Capital gains tax, including the real estate exemption, Washington State Department of Revenue
- Chapter 458-61A WAC, real estate excise tax, Washington State Legislature
Common questions#
Who pays real estate excise tax in Washington?
Usually the seller. The Department of Revenue says that if the seller does not pay it, the buyer becomes responsible. Escrow normally takes it out of the seller's proceeds at closing.
When is the excise tax due?
On the date of sale, whenever the deed is recorded. Penalties and interest are due if it is not paid within a month. On an ordinary sale, escrow pays it at closing.
Is the excise tax a percentage of the whole price?
The local part is. The state part is graduated, so each rate applies only to the slice of the price inside its band. On most Seattle sales the two together come to between about 1.6% and 1.7% of the price.
What is Seattle's local excise tax rate?
0.50% of the whole price, according to the Department of Revenue's local rate table effective 1 May 2026. Neighbouring cities set their own rates, so check the table for anywhere else.
Do the 2027 changes lower my tax?
Slightly. For sales from 1 January 2027 the state bands move up while the rates stay the same. On any sale between $551,000 and $1,525,000 that saves exactly $46.80.
Can I avoid paying it?
On an ordinary sale, no. Some transfers are exempt, such as certain gifts and inheritances, and the rules are in chapter 458-61A WAC. If you think one applies, ask your escrow officer or an attorney before closing.