Get Real Estate Excise Tax Supplemental Statement

The Leasehold Excise Tax rate is 12.84 percent of the rent paid for the property.

Washington state levies a real estate excise tax (REET) on all property sales. This state tax rate is 1.28% of a property's full selling price.

As of January 1, 2023, providers of affordable housing in Washington State have access to a new exemption from the excise tax on real estate sales (also known as the real estate excise tax, or “REET”). This new exemption, codified at RCW 82.45.

No, ing to the IRS in Income & Expenses 6 | Internal Revenue Service: The federal government charges excise taxes on the sale or use of a wide variety of products. An excise tax isn't deductible if it's for a personal expense.

Graduated REET Structure Sale price thresholdsTax rate$500,000 or less1.10%$500,000.01 - $1,500,0001.28%$1,500,000.01 - $3,000,0002.75%$3,000,000.01 or more3%

Definition of Excise Tax An excise tax is a tax on the transfer of ownership from the seller to the buyer paid at closing. The tax amount is based on the sale price of the home and varies by state and local government.

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%, 1.78%, 3.25%, and 3.5%.

Do I owe capital gains tax when I sell real estate? No. Washington's capital gains tax does not apply to the sale or exchange of real estate.