The Washington State Real Estate Excise Tax is a tax that is assessed on the sale of real estate in the state. It is generally paid by the seller, although in some cases it may be split between the buyer and seller. The tax is based on the sale price of the property, with different tax rates applicable to different price ranges.
For the first time in four years, the Washington State Real Estate Excise Tax is being adjusted. In January 2020, the state dramatically increased the excise tax rate for the sale of real estate. This increase was aimed at high value transactions, with the excise tax rate nearly doubling for some sellers.
Since then, the excise tax rates have remained consistent, but the state legislature has now decided to increase the dollar sales thresholds of the various tax rates by $25,000. This means that the range of sale prices subject to each tax rate has increased, and in some cases, the overall tax burden for sellers will be slightly lower.
For example, the lowest tax rate of 1.10% now applies to property sales up to $525,000, up from $500,000 previously. Interestingly, this new change will result in a small amount of savings for transactions over $3,000,000. The highest tax rate of 3.0% now applies to real estate sales of $3,025,001 and above, up from $3,000,001 and above previously.
|Old Threshold||New Threshold 1/1/23||State Excise Tax Rate||State + King County Tax Rate|
|Up to $500,000||Up to $525,000||1.10%||1.6%|
|$500,001 to $1,500,000||$525,001 to $1,525,000||1.28%||1.78%|
|$1,500,0001 to $3,000,000||$1,525,001 to $3,025,000||2.75%||3.25%|
|$3,000,001 and higher||$3,025,001 and higher||3.0%||3.5%|