Washington Graduated Real Estate Excise Tax (REET) and Local Closing Fees
Updated October 2026
Washington's real estate excise tax can be a substantial seller closing expense, especially when a property's selling price crosses a state tax bracket. The key distinction is that graduated REET applies different rates to portions of the taxable selling price—not the highest applicable rate to the entire transaction.
Calculate the graduated state tax
For a typical taxable residential sale, the state schedule uses these brackets:
| Portion of taxable selling price | State REET rate |
|---|---|
| Up to $525,000 | 1.10% |
| Above $525,000 through $1,525,000 | 1.28% |
| Above $1,525,000 through $3,025,000 | 2.75% |
| Above $3,025,000 | 3.00% |
On an $800,000 taxable sale, the first $525,000 produces $5,775 in state REET. The remaining $275,000 produces $3,520. The combined state amount is $9,295 before local REET and other applicable charges.
Local REET commonly adds 0.25%–0.50%, depending on the jurisdiction. At 0.50%, that example adds $4,000, bringing the combined state and local calculation to $13,295. Confirm the property's location and transaction classification rather than selecting a local rate by ZIP code alone.
Use the Washington Department of Revenue Property Tax & REET website to locate current REET schedules, local rates and exemption information.
Separate transfer tax from other closing expenses
REET is generally the seller's responsibility. Contract terms can affect who funds particular settlement charges, so buyers should not automatically add the seller's entire REET obligation to their own cash-to-close estimate.
Other closing items may include:
- Escrow settlement and document-handling charges.
- Owner's and lender's title insurance.
- County recording fees.
- Lender origination, appraisal and credit-related charges.
- Prepaid interest, insurance and property-tax adjustments.
A property-tax proration is not REET. It allocates an ongoing ownership expense between the parties based on the closing terms and timing. Likewise, a lender's initial escrow deposit funds future bills rather than paying a transfer tax.
Reconcile the estimate before signing
Ask escrow for an itemized settlement estimate showing the taxable price, state brackets, local rate and allocation of fees. Compare that estimate with your lender's Closing Disclosure and flag unexplained differences.
The Consumer Financial Protection Bureau explains the Closing Disclosure review process. Sound & Slope's closing cost estimator can organize an initial budget, while the Washington escrow and title guide explains how funds and documents move toward recording.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Washington Graduated Real Estate Excise Tax (REET) and Local Closing Fees — Separate monthly debt-service-to-income from upfront cash: down payment plus fees and prepaids, less deposits and approved credits. Avoid counting earnest money twice.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.