Effective January 1, 2020, the real estate excise tax (REET) will be imposed at a graduated rate, rather than a flat tax rate of 1.28% for all real estate transactions. The state-level tax will be:
- 1.1% on the first $500,000 of the selling price,
- 1.28% of the amount in excess of $500,000 but less than $1.5 million,
- 2.75% of the amount between $1.5 million and $3 million, and
- 3.0% on the amount in excess of $3 million.
Local REET rates (most commonly 0.5%) are added to the state rate. The new combined state and local REET rates for Seattle, Tacoma, Spokane, Vancouver, Bellevue, and most of urban and suburban Washington will be:
- 1.6% on the first $500,000 of the selling price,
- 1.78% of the amount in excess of $500,000 but less than $1.5 million,
- 3.25% of the amount between $1.5 million and $3 million, and
- 3.5% on the amount in excess of $3 million.
Sell Before January 2020 to Avoid the Increase
If you were considering selling your high-end home, now is the time to do so to avoid paying the much higher rate. Here’s the difference:
- $500,000 Selling Price = $6,400 old rate. $8,000 new rate. A $1,600 increase.
- $1,000,000 Selling Price = $12,800 old rate. $17,800 new rate. A $5,000 increase.
- $2,000,000 Selling Price = $25,600 old rate. $65,000 new rate. A $39,400 increase.
- $3,000,000 Selling Price = $38,400 old rate. $105,000 new rate. A $66,600 increase.
Be sure to consider selling with me, a 1% broker, to save even more. For all my listings, I do not charge to work with your buyers, saving you an additional 2.5% to 3%. PLUS, my rate is just 1.5% when I place an offer on your next home, making your offer stronger without having to pay for it. Contact me now.
Not ready to sell? Bookmark this page for when you are ready.
Daisy Casillas 