Washington's real estate excise tax (REET) is a tax on the sale of real estate, and under state law it's the seller's obligation, not the buyer's — you won't get a bill for it. Through the end of 2026, the state portion is graduated from 1.10% to 3.00% depending on price, and most King County cities, including Redmond, Bellevue, and Kirkland, add a local 0.5% on top. You still don't pay it directly as a buyer, but understanding how it works matters: it affects how much room a seller has to negotiate, it's one more thing checked before your deed can be recorded, and it will apply to you the next time you're the one selling.
What REET actually is
REET is a tax on the privilege of selling real property in Washington, measured by the full selling price — not a transfer tax collected from the buyer, and not a property tax. It's governed by RCW 82.45 and the Department of Revenue's implementing rules in WAC 458-61A. Nearly every sale of Washington real estate triggers it, whether the property is a single-family home, a condo, vacant land, or commercial property, and whether the transfer happens by a standard warranty deed or a quitclaim.
Who actually pays it — the buyer or the seller?
Under RCW 82.45.080, the seller is legally responsible for REET. In a typical Eastside closing, escrow calculates the tax, withholds it from the seller's net proceeds, and remits it to the county treasurer along with a stamped real estate excise tax affidavit before the deed is submitted for recording. The buyer isn't invoiced for it and it won't show up as a line item you owe on your closing statement.
There's one wrinkle worth knowing: if the tax somehow went unpaid, Washington law makes the buyer secondarily liable for it. In practice this almost never becomes an issue in a normal purchase — the county won't accept a deed for recording in the first place until REET has been paid and the affidavit is stamped, so the tax is resolved as a condition of closing, not something left hanging afterward. It's one more reason a properly run escrow and title insurance policy matter on every purchase.
Washington's 2026 REET rates: how the graduated tiers work
Since 2020, the state REET rate hasn't been a flat percentage — it's graduated, similar to income tax brackets, with a higher rate applying only to the slice of the price above each threshold. Through December 31, 2026, the state tiers are:
| Portion of sale price | State REET rate |
|---|---|
| $0 – $525,000 | 1.10% |
| $525,000.01 – $1,525,000 | 1.28% |
| $1,525,000.01 – $3,025,000 | 2.75% |
| Above $3,025,000 | 3.00% |
These price thresholds are adjusted for inflation every four years based on the Consumer Price Index, with the next scheduled adjustment taking effect January 1, 2027 — so the exact dollar breakpoints will shift slightly starting next year.
Here's what that looks like on two example Eastside prices. On a $1,000,000 sale: the first $525,000 is taxed at 1.10% ($5,775), and the remaining $475,000 is taxed at 1.28% ($6,080), for state REET of $11,855. On a $1,600,000 sale: $525,000 at 1.10% ($5,775), the next $1,000,000 at 1.28% ($12,800), and the remaining $75,000 at 2.75% ($2,062.50), for state REET of $20,637.50. In both cases, that comes directly out of the seller's proceeds, not your funds as the buyer.
The local add-on: King County's 0.5%
On top of the state rate, cities and counties can levy their own local REET, generally in the 0.25%–0.50% range. Most King County jurisdictions — including Redmond, Bellevue, Kirkland, Seattle, and Renton — currently apply the full 0.5% local rate, charged on the entire sale price rather than in tiers. Adding that to the examples above: the $1,000,000 sale would owe another $5,000 in local REET (total REET of about $16,855), and the $1,600,000 sale would owe another $8,000 (total REET of about $28,637.50). Local rates can vary by city and do change over time, so if you're ever curious about the exact combined rate for a specific address, the Department of Revenue publishes current local REET rates by location.
Common exemptions
A limited set of REET exemptions exist under WAC 458-61A for transfers that aren't true arm's-length sales — for example, certain transfers between spouses or domestic partners, outright gifts where no money changes hands, and some trust transfers. If you're buying a home on the open market through a standard purchase and sale agreement, none of these exemptions apply to you; REET is calculated and paid in full as part of a normal closing. Any exemption claimed on an affidavit is subject to Department of Revenue audit for up to four years from the sale date.
Why this still matters to you as a buyer
Even though you're not writing the check, REET affects your purchase in a few indirect ways:
- It's part of the seller's math. When you're negotiating price, a repair credit, or a closing-cost contribution, the seller is weighing your request against what they'll actually net after REET, agent compensation, and their payoff — understanding that REET already takes a real bite out of their proceeds helps explain how much flexibility a seller genuinely has.
- It's a condition of clear title. The deed transferring the home to you can't be recorded until REET is paid and stamped, so it's quietly part of what makes your closing legally complete.
- It will apply to you next time. Whenever you eventually sell this home, you'll be the one paying REET on that future sale — worth factoring into your long-term numbers, especially if you're buying with a short expected hold period.
Where this fits with the rest of your closing costs
REET is one of the few major costs in a Washington transaction that does not land on the buyer's side of the settlement statement. For everything that does — escrow, title insurance, lender fees, and prepaid items — see our full breakdown in closing costs in Washington for home buyers. And if you're negotiating a seller contribution to help cover those costs, our guide to rate buydowns and seller credits covers how that's typically structured.
A flat fee buyer's agent for Redmond, Bellevue & Kirkland
Knowing the difference between what a seller pays and what you pay is exactly the kind of detail a good buyer's agent should walk you through before you write an offer — not just hand you a disclosure packet. Whether you're buying in Redmond, Bellevue, or Kirkland, a traditional buyer's agent charging roughly 2.5% commission on a $1,000,000 Eastside home costs about $25,000. A flat $2,999 buyer service provides the same core representation — offer strategy, negotiation, contract review, and closing support — while leaving more than $22,000 more for your closing costs or down payment. See the full comparison in flat fee vs. a traditional buyer's agent, and who pays the buyer's agent in Washington now that commission rules have changed.
General information, not legal or tax advice. Real estate excise tax rates, thresholds, and local rates are set by the Washington State Legislature, the Washington Department of Revenue, and individual cities and counties, and they change over time — confirm the current combined rate for any specific address and sale price with your closing agent or the Department of Revenue before relying on these figures, and consult a qualified tax professional for advice specific to your transaction. Shi Hao Liu is a licensed WA real estate broker (License #26003789) with Kelly Right Real Estate, not an attorney or CPA. Verify any WA broker at the WA Department of Licensing.