During the past legislative session, there was a strong focus on ways to make Washington State’s tax structure more progressive. To meet this goal, legislators implemented a new graduated Real Estate Excise Tax (REET), replacing the current 1.28 percent sales tax applied to all transactions with a variable rate based on a property’s value (a structure quite similar to that being followed in California). In response, Realogics Sotheby’s International Realty (RSIR) has launched WashingtonREET.com, a calculator to help home sellers navigate this new tax structure by displaying estimations of 2019 and 2020 taxes.
The tiered REET takes effect on January 1st, 2020 and will impact all property types, with the exception of raw, undeveloped/agricultural land, which will remain at the current 1.28 percent rate. For sellers of homes priced below $500,000, the tax rate will drop to 1.1 percent, a savings for sellers at this price point. Those at the $1.56 million range will fall toward a break-even point, and sellers priced above that figure will indelibly be subject to larger REET sums.
Visit WashingtonREET.com to understand the implication for your home as you consider your real estate goals for 2019, 2020 and beyond.
This information is deemed reliable but cannot be guaranteed. Consult a qualified professional before making any investment decision. All excise tax calculations are rounded to the nearest dollar. Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned And Operated. Seller reserves the right to change product offering without notice. E&OE.