Washington State's Real Estate Excise Tax (REET) is a graduated marginal tax on real estate sales — each rate bracket applies only to the price within that range, not the full sale price. The structure rewards buyers and sellers at moderate price points but can be significant on luxury properties. Many Washington cities and counties also add a local REET2 on top.
WA REET is GRADUATED MARGINAL — each rate applies only to the portion in that bracket. On a $700K sale: 1.1% on first $525K ($5,775), then 1.28% on $175K ($2,240) = $8,015 total effective rate ~1.14%.
King County (Seattle, Bellevue, Redmond, Kirkland, Renton) charges an additional 0.5% REET2 — raising the effective rate in King County to 1.6–3.5% depending on price.
Some Washington cities add their own REET2 even within counties with 0.25% base REET2 — always verify the specific city/county combination.
San Juan County's 2.0% REET2 (for affordable housing) applies to one of Washington's most expensive vacation markets — this surprises buyers on Orcas Island and San Juan Island.
REET is paid by the seller by default. However, as with most transfer taxes, the purchase contract can allocate it differently.
REET1 is the state real estate excise tax (graduated marginal, 1.1–3.0%). REET2 is an additional local real estate excise tax that counties and cities are authorized to impose for specific purposes like affordable housing or transportation. King County charges 0.5% REET2; some other counties charge 0.25–2.0%.
Yes — REET applies to sales of real property including residential, commercial, agricultural, and vacant land. Certain transfers are exempt (government, nonprofit charitable, foreclosures meeting specific criteria).
Enter any address — we apply all applicable tax layers automatically.
Open the Calculator →