Understanding Seattle's Real Estate Excise Tax (REET) for Sellers
It's one of the most common surprises on a Washington seller's closing statement: a tax line item that can run into the tens of thousands of dollars. The Real Estate Excise Tax, or REET, is a graduated state tax owed by sellers on nearly every property sale in Washington — and unlike buyers, who never see this cost, sellers often aren't aware of it until they see it on their net sheet. TC Wu breaks down how it works and what to budget for.
What Every Seattle Seller Should Know
How REET is calculated and why it catches people off guard.
What REET Actually Is
REET is a one-time transaction tax on the sale or transfer of real property in Washington, paid by the seller at closing through escrow — it's not the same as annual property tax, and it's a separate charge from real estate commissions. Because Washington has no state income tax and no capital gains tax on real estate, REET is one of the primary ways the state funds infrastructure and housing programs through real estate transactions.
A Graduated Rate, Not a Flat Percentage
Washington's state REET uses a graduated structure: 1.1% on the portion of the sale price up to $525,000, 1.28% on the portion from $525,001 to $1,525,000, 2.75% from $1,525,001 to $3,025,000, and 3.0% above that. Each tier applies only to the portion of the price within that bracket — similar to how income tax brackets work — which means your effective rate rises gradually as the sale price increases, rather than jumping all at once.
Cities and Counties Add Their Own Rate on Top
In addition to the state's graduated rate, most Washington cities and counties — including Seattle and King County — add a local REET, typically around 0.25% to 0.50% of the full sale price. This local portion applies on top of the state tax, meaning your total combined REET rate is generally higher than the state rate alone.
Why It Belongs in Your Net Sheet From the Start
Because REET is often the single largest line item on a Seattle seller's closing statement — frequently larger than title and escrow fees combined — it deserves a spot in your pricing and net proceeds planning from the very beginning, not a surprise discovery partway through the process. Getting an accurate net sheet before you list helps you set realistic expectations and price your home with a clear view of your true bottom line.
"Almost every seller has the same reaction the first time they see the REET line on their closing statement — they weren't expecting it to be that large. It's the most predictable surprise in a Washington home sale, and it's completely avoidable with a little planning up front."— TC Wu, WPI Real Estate | Top Seattle Realtor
2026 Washington State REET Tiers
State rate only — most Seattle-area sales also add a local rate of ~0.25–0.50%.
| Sale Price Portion | State REET Rate |
|---|---|
| Up to $525,000 | 1.10% |
| $525,001 – $1,525,000 | 1.28% |
| $1,525,001 – $3,025,000 | 2.75% |
| Above $3,025,000 | 3.00% |
| Example: $900,000 Seattle home (approx. total incl. local) | ~$16,000 |
How to Plan for REET Before You List
Four steps to avoid the closing-day surprise.
Get an Accurate Net Sheet Before Listing
Ask your agent to calculate your specific REET liability based on your expected sale price, including local rates for your jurisdiction.
Understand the Tiered Structure, Not a Flat Rate
Remember that only the portion of your sale price within each bracket is taxed at that bracket's rate — not the entire sale price.
Confirm Your Exact Local Rate
Local REET rates can vary by city and county — confirm the specific rate for your property's exact location.
Factor REET Into Your Pricing Strategy
Build REET into your target net proceeds calculation when setting your list price, not as an afterthought once offers come in.
Frequently Asked Questions
Common REET questions answered by TC Wu.
Know Your True Net Proceeds Before You List
Let TC Wu build you an accurate net sheet — including REET — before you set your price.
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