WASHINGTON STATE GRADUATED REAL ESTATE EXCISE TAX
The Washington State Legislature has changed the real estate excise tax (REET) from a flat tax of 1.28% to an incremental tax based on the sales price of the home. Effective as of January 1, 2020.
THE NEW TAX RATES
The tax calculation is now slightly more complex—similar to personal income taxes, sellers will now pay different tax rates on each dollar of sales above a certain threshold. Below are the new tax rate tiers.
HOW THIS WILL AFFECT SELLERS
The Washington State REET change is good news for the 90%+ of sellers who sell their home for less than $1.56 million, as the new rates result in these sellers paying less in excise taxes.
NOTE: THE BREAKEVEN POINT IS $1,561,225
Local government REET rates did not change and remain in effect. Most local REET is 0.5% but there are exceptions. Local REET is not a graduated tax and is therefore calculated separately based on the home selling price.
If you have any questions, please contact a JetClosing Relationship Manager
JOANNINE KRAMARSIC
RELATIONSHIP MANAGER
Redmond, Sammamish, & Issaquah