2020 Real Estate Excise Tax Revision

The Washington State Legislature has changed the way in which real estate excise taxes taxes (REET) will be calculated. This change will impact real estate sales beginning next year. Starting January 1, 2020, the real estate excise tax, currently a flat 1.78% of the sales price paid by the seller at closing, will be calculated on a graduated scale.


SALE PRICE
                          TAX RATE
$0 to $500,000                             1.6%
$500,000 to $1,500,000            1.78% (current rate)
$1,500,000 to $3,000,000        3.25%
$3,000,000+                                3.5%

 

 

Sample calculation for a sales price of $2,000,000:

1.6% for the first $500,000 = $8,000
1.78% for the amount between $500,000 to $1,500,000 = $17,800
3.25% for the amount between $1,500,000 to $2,000,000 = $16,250
Total tax in 2020 = $42,050

Homes sales priced under $500,000 will see a decrease in  excise tax; homes priced up to $1,500,000 will see no change to the current real estate excise tax rate.

The tax rates listed above include the municipality tax of 0.50%. Some municipalities have different tax rates. For additional information about the real estate excise tax and local rates for each municipality, visit the Department of Revenue’s website.

 

Posted on December 19, 2019 at 10:30 AM
Robin Myers | Category: condominiums, home property values, real estate | Tagged , , , , ,

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