What is Washington's real estate transfer tax called?

Washington calls it the Real Estate Excise Tax, or REET. Since 2020 the state portion is graduated by selling price, and a local REET (usually 0.25% to 0.50%) is added on top. It is the tax you owe when ownership of real property is transferred.

What are the graduated REET rates in Washington?

The state REET applies marginally by tier: 1.10% on the portion up to $525,000, 1.28% from $525,000 to $1,525,000, 2.75% from $1,525,000 to $3,025,000, and 3.00% above $3,025,000. Each tier's rate applies only to the portion of the price within that band.

Who pays the REET in Washington?

By custom and statute, the seller (grantor) pays the real estate excise tax in Washington, though parties can negotiate who covers it. The tax is due at the time the deed is recorded and a REET affidavit is filed with the county treasurer.

Are any transfers exempt from REET?

Yes. Transfers with no consideration — such as gifts, inheritances, transfers between spouses or registered domestic partners, and certain transfers into a wholly owned entity — are typically exempt, though a REET affidavit claiming the exemption is usually still required.

How is the graduated state tax calculated on a high-value sale?

Each tier's rate applies only to the slice of the price in that band, like marginal income tax. For a $2,000,000 sale, the first $525,000 is taxed at 1.10%, the next $1,000,000 at 1.28%, and the remaining $475,000 at 2.75% — then the tier amounts are added together.

Washington Real Estate Transfer Tax Calculator

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The Washington real estate transfer tax calculator estimates the Real Estate Excise Tax (REET) owed when a property changes hands, applying the state’s graduated price tiers plus your local rate. Since the state portion is marginal, this tool computes each tier correctly rather than using a single flat rate.

How it works

Washington’s state REET is graduated, meaning each rate applies only to the portion of the sale price within its band:

1.10% on the portion up to $525,000
1.28% on the portion from $525,000 to $1,525,000
2.75% on the portion from $1,525,000 to $3,025,000
3.00% on the portion above $3,025,000

A local REET (commonly 0.25% to 0.50%) is then added as a flat percentage of the full price:

state REET = sum over tiers of (portion in tier x tier rate)
local REET = sale price x local rate
total      = state REET + local REET

Exempt transfers — gifts, inheritances, and spousal transfers with no consideration — owe no excise tax, though an affidavit is usually still filed.

Example

A $700,000 home sale with a 0.50% local rate:

First $525,000 at 1.10%: $5,775
Next $175,000 (525k–700k) at 1.28%: $2,240
State REET: $8,015
Local REET: $700,000 x 0.005 = $3,500
Total REET: $11,515 (about 1.65% of the price).

Tips and notes

Marginal, not flat. Higher-value homes do not pay the top rate on the whole price — only on the portion above each threshold.
Seller usually pays. REET is customarily the seller’s cost, due at recording.
Check the local rate. Local REET varies by city and county; confirm yours before relying on the figure.
Claim exemptions properly. Even exempt transfers generally require a REET affidavit filed with the county treasurer.