2023 Update to Real Estate Excise Tax Rates

For decades real estate excise tax rates in the State of Washington were a flat rate of 1.28% plus a local municipality portion of 0.5% for most counties in Washington for a total of 1.78% tax on nearly all transfers of real estate. A few cities in Western Washington and many counties in Eastern Washington reduce the local municipality portion of the tax to 0.25%.

However, on January 1st, 2020, the real estate excise tax rate system shifted to a tiered program which reduced excise tax rates on the sale of lower-priced properties, and increased taxes on higher value properties. The new tax rates became:

        1.10% (1.60%) for sales $500,000 or less

        1.28% (1.78%) for sales $500,000.01 to $1,500,000

        2.75% (3.25%) for sales between $1,500,000.01 to $3,000,000

        3.00 % (3.50 %) for sales $3,000,000 or more

        (Total with Local Tax)

As part of this new law, the thresholds for increased excise tax were held constant until January 1, 2023 where they are now scheduled to increase by $25,000 every year. So, the new thresholds for real estate excise tax for 2023 are now:

        1.10% (1.60%) for sales $525,000 or less

        1.28% (1.78%) for sales $525,000.01 to $1,525,000

        2.75% (3.25%) for sales between $1,525,000.01 to $3,025,000

        3.00 % (3.50 %) for sales $3,025,000 or more

        (Total with Local Tax)

For more information on Washington State Real Estate Excise Tax Program, please visit the Department of Revenue's website.