Washington Real Estate Excise Tax Is Changing in 2027: What Home Sellers Should Know
Oct 7
3 min read
If you're planning to sell a home in Vancouver or elsewhere in Washington next year, there's a number worth knowing before you start calculating your proceeds.
Washington's Real Estate Excise Tax brackets change January 1, 2027.
REET is a tax on the sale of real property in Washington and is generally paid by the seller. Washington Department of Revenue
The confusing part isn't really the tax itself.
It's how the brackets work.
The New 2027 REET Brackets
Beginning January 1, 2027, Washington's state REET rates are:
1.10% on the portion up to $551,000
1.28% on the portion above $551,000 through $1,551,000
2.75% on the portion above $1,551,000 through $3,051,000
3.00% on the portion above $3,051,000 Washington Department of Revenue
The thresholds are periodically adjusted under Washington law, which is why they're changing for 2027.
The Higher Rate Doesn't Apply to the Whole House
This is the part I want sellers to understand.
Let's say your Vancouver home sells for $700,000.
You don't calculate:
$700,000 × 1.28%.
Instead, it works in pieces.
On a $700,000 sale:
First $551,000 at 1.10%:
$6,061
Remaining $149,000 at 1.28%:
$1,907.20
Estimated state REET:
$7,968.20
That's an important distinction.
Crossing the $551,000 threshold doesn't suddenly make the entire sale subject to 1.28%.
What About a $1 Million Sale?
Same idea.
On a $1,000,000 sale:
First $551,000 × 1.10% = $6,061
Remaining $449,000 × 1.28% = $5,747.20
Estimated state REET:
$11,808.20
Again, that's the state portion.
There's Also Local REET
Washington allows local real estate excise taxes as well.
So the final REET amount on a sale can depend on the propertys location in addition to the state graduated tax.
That's why I wouldn't simply look at the state percentage and assume that's your entire tax bill.
Why Sellers Should Calculate This Before Listing
When someone tells me:
“I need to walk away with $300,000 from this house,”
the asking price isn't really the number that matters.
The net is.
Before deciding what a sale accomplishes financially, I want to consider things like:
Mortgage payoff
State REET
Local REET
Escrow/title expenses
Agent compensation
Agreed buyer concessions
Repairs or credits
Any other propertty-specific costs
That's how you get from:
“My house sold for $700,000.”
to:
“Here's what actually landed in my account.”
Those are very different numbers.
Does Oregon Have the Same Tax?
No.
This is specifically a Washington tax structure.
Portland and Vancouver may feel like one real estate market in a lot of ways, but this is a perfect example of why the two sides of the Columbia can't always be treated the same.
Oregon and Washington have different contracts, laws, taxes and transaction costs.
What If You're Right Near a Bracket?
Don't panic about crossing it.
If your house is worth $560,000, it would generally make no sense to intentionally sell it for $550,000 simply because you're worried about entering the next REET bracket.
Only the portion above the threshold receives the higher state rate.
On an extra $10,000 above the $551,000 threshold, for example, the 1.28% state tax on that additional amount is only $128.
Giving up thousands of dollars in sales price to save a relatively small amount of tax would usually be backwards.
Who Normally Pays REET?
Washington's Department of Revenue says REET is almost always paid by the seller.
Technically, if it isn't paid, the buyer can become responsible and unpaid tax can create a lien against the property. Washington Department of Revenue
In a normal transaction, however, this is handled through closing.
Bottom Line
If you're selling in Washington in 2027, remember two things:
The REET thresholds are changing.
It's not the most exciting part of selling a house but understandng the numbers before you list can prevent a pretty unpleasant surprise when you see your final settlement statement.
If you're considering selling in Vancouver or SW Washington, I can put together an estimated seller net sheet before you list so you can see what the sale may actually look like after the major expenses.
I provide full-service listing representation for 1.25%, including professional marketing, pricing strategy, negotiation and transaction management through closing.
Jeremy Wilkerson
Oregon & SW Washington Real Estate Agent
The Washington Department of Revenue has the official 2027 REET thresholds and current REET information. *Tax Disclaimer: Jeremy Wilkerson is not a licensed tax professional. Tax rates, exemptions, and individual circumstances may vary. Verify all information with the Washington Department of Revenue and a qualified tax professional before making financial decisions.
