Changes updated for real estate excise tax calculations

CHANGES EFFECTIVE January 1, 2023:

Per the Washington State Legislature, the Department of Revenue is required to adjust the selling price thresholds for real estate excise tax every fourth year.

Washington’s real estate excise tax (REET) tier system has changed, increasing each sales price tier by $25,000 and each subsequent threshold changed accordingly. The infographic below illustrates the new tiered rates by sales price.

Previously, local municipalities added their excise tax on top of the state tax, with most cities in our area adding 0.50 percent.

Effective January 1, 2023, Washington State began calculating real estate excise taxes based upon a tier system as follows:

Arate of 1.78% percent is imposed on the sale of undeveloped land, timberland,agricultural land, and water or mineral rights, regardless of selling price.For more information and excise tax examples, please visit:

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