Max Efrein is a journalist who has covered a wide array of topics, including tracking real estate trends, for both traditional newspapers and online media. He also picked up some firsthand home building experience while significantly expanding and renovating his house to accommodate his growing family.
Richard Haddad , Executive Editor Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Editor’s note: This article is meant for educational purposes only and is not intended to be construed as financial, tax, or legal advice. When considering taxes on selling a house in Washington State, HomeLight always encourages you to reach out to a professional advisor regarding your own situation.
When you sell a home in Washington State, you can expect to pay some sizable transfer taxes.
The main thing to consider is the state’s real estate excise tax (REET). Aside from that, there are lesser local transfer taxes, as well as the standard federal tax on capital gains you make from the home sale.
With the help of a top Washington State real estate agent, we’ll take a look at each of these tax liabilities and how they add up when you sell your Washington home.
Connect With a Top Agent to Sell Your Washington State Home
It takes just two minutes to match clients with the best real estate agents, who will contact you and guide you through the process. To connect with an agent, simply tell us a little bit about your property and how soon you’re looking to sell.
Our data shows the top 5% of agents across the U.S. help clients sell their home for as much as 10% more than the average real estate agent.
This is the primary tax you’ll have to pay when you sell your Washington home. It’s based on the entire sales price (not just the profit), and the percentage you owe graduates as the sales price reaches specific thresholds.
Effective Jan. 1, 2023, the selling price thresholds for the state portion of REET will be as follows:
| For the portion of the selling price that is: | Real Estate Excise Tax Rate |
| Less than or equal to $525,000 | 1.1% |
| Greater than $525,000 and less than or equal to $1,525,000 | 1.28% |
| Greater than $1,525,000 and less than or equal to $3,025,000 | 2.75% |
| Greater than $3,025,000 | 3.0% |
Most counties and local governments in the state also charge their own smaller REETs on top of the state’s rate. In most jurisdictions, this amounts to an additional 0.25% or 0.50% of each selling price threshold.
John Dirgo Deweese, an Ocean Shores, Washington, real estate agent with more than 20 years of experience, says home sellers are commonly caught off guard by these taxes.
“It’s really something that only occurs for most people with the sale of a house or something like that,” Deweese explains. “It’s a complete surprise to people when it comes up.”
For this reason, he usually breaks the news to his clients at the beginning of the selling process and explains that REETs are unavoidable.
“Absolutely everyone pays this on every real estate sale,” he says. “There’s no exemptions, exclusions, nothing.”