Transfer Tax & Closing Costs in Washington

Transfer Tax

Washington calls its transfer tax the Real Estate Excise Tax (REET), confirmed via Washington Dept. of Revenue (dor.wa.gov). It is a graduated STATE rate (in effect since Jan 1, 2023, current for 2026): 1.10% on the portion of price up to $525,000; 1.28% on the portion from $525,000.01–$1,525,000; 2.75% on the portion from $1,525,000.01–$3,025,000; and 3.00% on the portion above $3,025,000. (Flat 1.28% applies instead for qualifying agricultural land/timberland.) On top of the state rate, cities/counties add a LOCAL REET, typically 0.25%–0.50% of the full price (e.g., King County/Seattle +0.50%, Snohomish County +0.50%, Pierce County +0.25%), making the combined effective rate roughly 1.35%–1.78% for a typical home sale in the Seattle metro area. A flat $5 state technology fee applies to every transfer, plus a $5 fee if claiming an exemption, with a $10 combined minimum.

Typical Closing Costs

Sellers: roughly 7%–10% of sale price (driven mainly by ~5–6% real estate commission plus ~1.1%–1.8% REET plus owner's title insurance and escrow fees). Buyers: roughly 2%–5% of purchase price (loan/lender fees, lender's title insurance, escrow fees, recording fees, prepaid items).

Who typically pays: Per Washington DOR directly: the seller is the party legally responsible for REET ("usually the seller pays this tax, but if they don't, the buyer is responsible") — this is a firm statutory default, not just a loose local custom. Separately, by common local convention (not statute), sellers in most of Washington also customarily pay for the owner's title insurance policy, while buyers typically cover lender's title insurance, loan-related closing costs, and escrow/recording fees on their side of the transaction. Real estate commissions (historically 5–6% combined) are typically negotiated and paid out of seller proceeds, though this has been shifting since 2024 NAR settlement-related changes nationally.