Worked Example: $2,000,000 Seattle Purchase
Ordinary purchase, $400,000 down payment, $1,600,000 newly originated mortgage — standard graduated brackets, no agricultural/timberland exception.
| State REET — Bracket 1: $0–$525,000 @ 1.10% | $5,775.00 |
| State REET — Bracket 2: $525,000–$1,525,000 @ 1.28% | $12,800.00 |
| State REET — Bracket 3: $1,525,000–$2,000,000 @ 2.75% | $13,062.50 |
| State REET subtotal | $31,637.50 |
| Seattle local REET (0.50% of $2,000,000) | $10,000.00 |
| Technology fee + affidavit processing fee | $10.00 |
| Total Washington REET | $41,647.50 |
This is a tax-module example, not a complete settlement statement — title, escrow, lender, and standard recording charges are not included. Sources: Washington DOR REET guidance and rate brackets, RCW 82.45, Seattle Department of Finance and Administrative Services.
Washington's State REET Is Marginal, Not a Flat Rate
Unlike Los Angeles's Measure ULA (a whole-price cliff), Washington's state Real Estate Excise Tax is a true marginal bracket structure — each rate applies only to the slice of the sale price that falls within that bracket, the same way federal income tax brackets work. A $2,000,000 sale is not taxed at 2.75% across the board; the first $525,000 is taxed at 1.10%, the next portion up to $1,525,000 at 1.28%, and only the remaining amount above $1,525,000 at 2.75% (or 3.00% once price crosses $3,025,000).
| Bracket | Price range | Rate |
|---|
| 1 | $0 – $525,000 | 1.10% |
| 2 | $525,000.01 – $1,525,000 | 1.28% |
| 3 | $1,525,000.01 – $3,025,000 | 2.75% |
| 4 | $3,025,000.01 and above | 3.00% |
Seattle Adds Its Own Local REET
On top of the state's graduated brackets, Seattle imposes its own local Real Estate Excise Tax of 0.50% of the selling price, plus a $5 state technology fee and a $5 affidavit processing fee on most taxable transfers. Local REET rates vary significantly by Washington city and county — Seattle's 0.50% should never be assumed for other Washington locations; buyers outside Seattle should confirm their local rate against the Department of Revenue's published local rate schedule before relying on an estimate.
The Agricultural & Timberland Exception
Qualifying agricultural land and standing timber are taxed at a flat 1.28% state rate instead of the graduated bracket schedule — but only when the seller affirmatively claims that classification on the excise tax affidavit. This calculator only applies that exception when explicitly checked in Advanced Options; it is never inferred from a general property description, since that classification carries specific statutory requirements beyond what a simple label like "farm" or "rural" would indicate.
Frequently Asked Questions
Is Washington's Real Estate Excise Tax a flat percentage?
No. The state portion is graduated: 1.10% on the first $525,000, 1.28% on the next portion up to $1,525,000, 2.75% up to $3,025,000, and 3.00% above that. Each bracket taxes only the slice of price that falls within it — this is a marginal structure, not a whole-price cliff.
Does Seattle add its own transfer tax on top of the state REET?
Yes. Seattle levies an additional local REET of 0.50% of the selling price, on top of the graduated state REET. Local REET rates vary by city and county across Washington, so Seattle's 0.50% should not be assumed for other locations.
Are there fixed fees on top of the percentage-based REET in Washington?
Yes. A $5 state technology fee and a $5 affidavit processing fee apply to most taxable transfers, on top of the percentage-based REET calculations.
Does agricultural or timberland property get a different Washington REET rate?
Yes, but only when the seller affirmatively claims that classification on the excise tax affidavit. Qualifying agricultural land and standing timber are taxed at a flat 1.28% rather than the graduated bracket schedule. This exception should never be triggered automatically from a property-type label alone.
Will Washington's REET bracket thresholds stay the same every year?
No. The Department of Revenue adjusts the REET bracket thresholds annually. This calculator uses the currently published thresholds and will be updated when DOR publishes the next annual adjustment.
Does my down payment or new mortgage change the REET calculation?
No. REET is calculated on the full selling price/consideration, not on the buyer's equity or loan amount. A new purchase-money mortgage does not reduce the taxable base.
Who typically pays closing costs in Washington?
Closing cost responsibility is set mainly by the purchase agreement rather than a fixed state formula in most cases. Buyers typically pay their own loan-related fees — origination, appraisal, and the lender's title insurance policy — while sellers commonly pay the real estate commission and, in many markets, the owner's title insurance policy. Local custom varies, so ask your real estate agent how closing costs are typically split where you're buying in Washington.
Can closing costs be negotiated?
Yes. Many closing cost line items are negotiable between buyer and seller as part of the purchase offer, and lender fees can often be shopped and negotiated between lenders. It's common for buyers to request a seller credit toward closing costs, particularly when a market favors buyers.
Are closing costs tax-deductible?
Some are, some aren't, and the rules differ for a primary residence versus a rental or investment property. Loan origination points paid to reduce your interest rate are often deductible in the year you pay them; costs like title insurance, appraisal fees, and recording fees typically aren't deductible but can usually be added to your home's cost basis. This is general information, not tax advice — a CPA can confirm what applies to your specific purchase.
Does this calculator include lender fees or title insurance?
No. This calculator isolates the government-charged transfer tax and deed-recording fee for Washington shown in the sources above — it does not include lender origination fees, appraisal costs, title insurance premiums, escrow fees, or prepaid items. Those vary by lender and title company and should be confirmed on your Loan Estimate and Closing Disclosure.
Methodology & sources: Rates sourced directly from the Washington State Department of Revenue's REET guidance and rate schedule, RCW 82.45, WAC 458-61A, and the City of Seattle Department of Finance and Administrative Services. Researched and last verified August 21, 2026. Tax law changes — always confirm current rates with your escrow officer, closing attorney, or the Washington Department of Revenue before relying on this estimate for a real transaction. Spotted an error?
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