Real Estate Tax | Market News & Stats Blog

Monday, December 30, 2019   /   by Laura Lynn

Deep Dive into the Washington 2020 Excise Tax Changes and Why

The January 1, 2020 excise tax change will have a significant impact on real estate sales for $1.5M+ The former model of 1.78% is over. The breakdown use to be: 1.28% (state) + .5% (city & county) of the sales price for all sales. The new calculation is still a percentage of the overall sales price, however now it is tiered, depending on sales price. 
This is the new 2020 Calculation: (add the .5% city/county tax to all of the below)

1.1% on the portion of the selling price that is $500,000 and less;
1.28% on the portion of the selling price that is greater than $500,000 and less than or equal to $1.5 million;
2.75% on the portion of the selling price that is greater than $1.5 million and less than or equal to $3 million; and
3.0% on the portion of the selling price that is greater than $3 million.

Overview
The State of Washington levies a real estate excise tax (REET) upon most sales of real property. The tax is calculated based on the full selling price, in. ...

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