Washington State lawmakers passed a bill that will implement a graduated Real Estate Excise Tax (REET), which will go into effect on January 1, 2020. What does that new graduated REET mean to you?
Currently, the state taxes property sales at a single rate of 1.28%, which is typically accompanied by an additional county tax. In King, Pierce and Snohomish counties, the additional county tax is 0.5%, making the total excise tax owed on a property sale in those counties 1.78%. Now the state REET will be progressive and based on the sales price of your property. Real Estate excise taxes are paid by the seller of a property in our state.
Here is how the current real estate excise tax compares to what is coming:
Here are some examples of what tax amounts would be due at the current vs. the new tax rates at the different price breaks:
By Marco Kronen with Seattle Condo Review: A guide to Seattle condos.