Washington Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers
Washington's real estate excise tax is graduated from 1.1% to 3.0%, and the seller usually pays it. See the 2026 tiers and a $300,000 example.
Washington charges a graduated state real estate excise tax (REET): 1.1% on a selling price up to $525,000 in 2026, rising to 1.28%, 2.75% and 3.0% on higher tiers. A local REET is added on top. The Department of Revenue says the seller usually pays it, but if they do not, the buyer is responsible.
Washington’s seller-side tax is graduated, not flat
Washington does not call it a transfer tax. It is the real estate excise tax, or REET, and it is the largest tax line most Washington sellers see at closing. It has two parts: a graduated state rate based on selling price, and a local rate added on top.
The Washington Department of Revenue states that usually the seller pays this tax, but if they do not, the buyer is responsible. The tax is due to the county treasurer on the sale date, regardless of when the deed records. Failing to pay it can create a lien on the property itself.
The state tiers for sales from January 1, 2023 through December 31, 2026 are:
| Selling price | State REET rate |
|---|---|
| Up to $525,000 | 1.10% |
| $525,001 to $1,525,000 | 1.28% |
| $1,525,001 to $3,025,000 | 2.75% |
| Over $3,025,000 | 3.0% |
Agricultural land and timberland use a flat 1.28% state rate. For sales beginning January 1, 2027, the thresholds rise to $551,000, $1,551,000 and $3,051,000, with the same four rates. The Department of Revenue says the local REET must be calculated and added to the graduated state rate. Local rates vary by jurisdiction and date range, and the Department publishes rate tables for them.
Worked example: a hypothetical $300,000 sale
A $300,000 selling price sits in the first tier, so the state rate is 1.10%.
- $300,000 x 1.10% = $3,300 state REET
The local REET comes on top of that and depends on the city or county. Look up the rate for the property’s location in the Department of Revenue’s rate tables, multiply it by $300,000, and add it to the $3,300. This example stays in the first tier on purpose. For prices above $525,000, check the Department of Revenue’s instructions for how the tiers are applied before you estimate.
If the seller pays, that total is the seller’s cost. If the contract assigns it differently, the buyer carries it. Read the closing cost clause and ask your title company or closing attorney what is customary locally.
Exemptions and the one-exemption rule
The Department of Revenue lists a range of exemptions, including gifts, inheritance or devise, community property and dissolution of marriage or domestic partnership, governmental transfers, condemnation proceedings and certain foreclosure-related transfers. Only one exemption may be claimed per transfer. Do not assume an exemption fits your deal. Your closing agent can confirm which one, if any, applies.
Other seller costs in Washington
- Agent commission. Negotiable.
- Mortgage payoff. Your balance plus interest through payoff.
- Prorated property taxes. Settled between buyer and seller by your contract.
- Title, escrow and recording fees. These vary. Who pays each is set by your purchase contract.
- Title insurance. We did not source a Washington rate schedule, so ask for a quote.
- Repairs and credits. Whatever you agree to after inspection.
What this means if you flip or wholesale in Washington
A flip sees REET at both ends. When you buy, the seller usually pays it, but your contract can change that. When you sell, you usually pay it. On a hypothetical $300,000 exit, that is $3,300 in state REET before the local piece. A thin margin can disappear into the local add-on, so look up the rate for each property before you make an offer.
For wholesalers, an assignment usually means one deed from the original seller to your end buyer, so there is one sale date and one REET calculation. A double close means two closings and two sets of costs. The Department of Revenue says the tax is due on the sale date, and each sale is a separate transfer, so a double close can mean two REET calculations. Whether an assignment fee changes the selling price used for REET is a question for your title company.
For your maximum allowable offer:
- Start from after-repair value and subtract repairs, holding costs, financing costs and your profit target.
- Subtract commission and selling costs, including REET at the state rate for your exit price plus the local rate.
- Subtract REET on your purchase if your contract puts it on you, and title and escrow on each closing.
Run your numbers
Automize CRM has a free closing cost calculator for building the REET into an offer.
This guide is general information, not tax or legal advice. Confirm your exact figures with your title company or closing attorney.
Sources
Rates checked October 24, 2026. General information, not tax or legal advice.
Common questions
What is the real estate excise tax rate in Washington in 2026?
For sales through December 31, 2026, the Department of Revenue lists state REET rates of 1.10% up to $525,000, 1.28% from $525,001 to $1,525,000, 2.75% from $1,525,001 to $3,025,000 and 3.0% above $3,025,000. A local REET is calculated and added to the state rate.
Who pays the Washington REET, the buyer or the seller?
The Washington Department of Revenue says the seller usually pays this tax, but if they do not, the buyer is responsible. The tax is due to the county treasurer on the sale date regardless of when the deed records, and unpaid tax can create a lien on the property itself.
Do the REET thresholds change in 2027?
Yes. The Department of Revenue lists new selling price thresholds for sales beginning January 1, 2027: up to $551,000 at 1.1%, $551,001 to $1,551,000 at 1.28%, $1,551,001 to $3,051,000 at 2.75% and above $3,051,000 at 3.0%. Agricultural land and timberland stay at a flat 1.28% state rate.
Are any Washington transfers exempt from REET?
The Department of Revenue lists exemptions including gifts, inheritance or devise, community property and dissolution of a marriage or domestic partnership, governmental transfers, condemnation and certain foreclosure-related transfers. Only one exemption may be claimed per transfer, so ask your closing agent which one fits.
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