Washington's REET Changed in 2026: What Shoreline Sellers Need to Know
- Samantha Schlegel
- 15 hours ago
- 7 min read
What is Washington's Real Estate Excise Tax (REET) in 2026?
Washington State's Real Estate Excise Tax (REET) is a graduated transfer tax paid by the seller at closing. Effective January 1, 2026, the state raised the first-tier ceiling from $525,000 to $750,000, meaning sellers now pay 1.10% on the first $750,000 of their home's sale price — a change that saves sellers in Shoreline's median price range a real amount at closing. King County adds a local REET of 0.50% on top of the state rate, bringing total excise tax to roughly 1.60%–1.78% for most Shoreline sales. REET is deducted automatically by your title and escrow company before you receive your net proceeds.
By Samantha Schlegel | June 17, 2026
Here's something that happened on January 1, 2026, that most Shoreline homeowners still don't know about: Washington State quietly changed the Real Estate Excise Tax structure. And if you're planning to sell your home this year, it affects what you'll net at closing.
Not dramatically. But real money is real money — and more importantly, understanding REET is one of those gaps that keeps sellers from accurately estimating what they'll walk away with.
Let's break it down.
What Is REET - and Who Pays It?
When you sell a home in Washington State, you pay REET to transfer the title. It's not optional, and your title and escrow company handles the calculation and collection automatically at closing. Unlike states that use attorneys to close real estate transactions, Washington runs everything through a neutral escrow company — and REET is always the seller's responsibility.
It's one of the biggest line items on your closing statement — often larger than the escrow fee, title insurance, or any prep costs you put into the home before listing.
Washington uses a graduated rate structure, meaning different portions of your sale price are taxed at different rates. You don't pay one flat rate on the whole amount. The sale is sliced into tiers, and each tier has its own rate.
On top of the state rate, King County adds a local REET of 0.50% on every transaction, regardless of sale price.
What Changed on January 1, 2026
Before 2026, Washington's REET tiers looked like this:
1.10% on the first $525,000
1.28% on amounts from $525,001 to $1,525,000
2.75% on amounts from $1,525,001 to $3,025,000
3.00% on anything above $3,025,000
Starting January 1, 2026, the state raised the first-tier ceiling from $525,000 to $750,000. The 2026 structure now looks like this:
1.10% on the first $750,000 (was $525,000)
1.28% on amounts from $750,001 to $1,525,000
2.75% on amounts from $1,525,001 to $3,025,000
3.00% on anything above $3,025,000
The upper tiers didn't change. But for sellers in the $525,000–$750,000 range, more of your sale price is now taxed at 1.10% instead of 1.28%.
What This Means in Real Numbers for Shoreline Sellers
Shoreline's current median home value sits around $776,000 — down about 3.6% year over year, but still firmly in the tier where this change matters. Here's what the math looks like at three common Shoreline price points.
Selling at $650,000
Before 2026:
First $525,000 × 1.10% = $5,775
Remaining $125,000 × 1.28% = $1,600
State REET: $7,375 | King County local (0.50%): $3,250 | Total REET: $10,625
Starting January 1, 2026:
Full $650,000 × 1.10% = $7,150
State REET: $7,150 | King County local (0.50%): $3,250 | Total REET: $10,400
Savings: $225
Selling at $749,000
Before 2026:
First $525,000 × 1.10% = $5,775
Remaining $224,000 × 1.28% = $2,867
State REET: $8,642 | King County local (0.50%): $3,745 | Total REET: $12,387
Starting January 1, 2026:
Full $749,000 × 1.10% = $8,239
State REET: $8,239 | King County local (0.50%): $3,745 | Total REET: $11,984
Savings: $403
Selling at $999,000
At this price point, the first $750,000 is taxed at 1.10% and the remaining $249,000 is taxed at 1.28%.
First $750,000 × 1.10% = $8,250
Remaining $249,000 × 1.28% = $3,187
State REET: $11,437 | King County local (0.50%): $4,995 | Total REET: $16,432
At a million dollars, excise tax alone clears $16,000. That's before commission, escrow fees, title insurance, or any prep work you've done on the home.
These aren't life-changing numbers on their own. But most sellers I talk to are working from estimates that haven't been updated since before the change — which means their net sheet is already off before the conversation even starts.
REET in the Context of Your Full Closing Costs
REET is one piece of a larger picture. When I sit down with sellers in Shoreline to map out net proceeds, REET is typically the second or third largest line item — after agent commission and escrow fees.
Here's roughly what your full closing cost picture looks like at a $750,000 sale price:
Agent commission: ~$36,000–$45,000
REET (state + King County): ~$12,000
Escrow and title fees (seller's share): ~$1,500–$2,500
Recording fees and miscellaneous: ~$200–$400
Estimated net: roughly $690,000–$700,000 before mortgage payoff
That gap between sale price and what actually lands in your bank account is where sellers most often get surprised. If you're trying to hit a specific net number — to pay off a mortgage, fund your next purchase, or cover relocation costs — you need these figures before you choose a list price, not after you've accepted an offer.
This is exactly what a net sheet does. And it's one of the first things I put together with every client before we talk about pricing. For a detailed breakdown of all seller costs in Shoreline, see How Much Does It Really Cost to Sell a Home in Shoreline? (2026 Seller Breakdown).
What About Sellers in Edmonds and Mountlake Terrace?
The 2026 tier change is a state-level change and applies everywhere in Washington. What varies by jurisdiction is the local REET rate added on top of the state rate.
Edmonds is in Snohomish County, which has its own local REET rate separate from King County's 0.50%. Mountlake Terrace straddles the King County and Snohomish County lines, so if your home is there, it's worth confirming exactly which county's local rate applies.
If you're listing in Edmonds, the 2026 tier structure still works in your favor — you're just working with a different local add-on rate when calculating your total.
One more timing consideration: when you sell matters beyond just the tax calculation. The Shoreline market has been softening slightly — down 3.6% year over year — and buyer competition, days on market, and your ultimate sale price all shift with the season. If you're weighing your timing, this breakdown of the best time to sell in Seattle in 2026 is worth reading before you decide on a list date.
Frequently Asked Questions
Who pays REET in Washington State — the buyer or the seller?
The seller pays REET in Washington State. It's deducted from your proceeds at closing by the title and escrow company, along with other seller closing costs. REET is calculated on the sale price of the home and paid before you receive your net proceeds.
How do I calculate my Real Estate Excise Tax for a Shoreline home sale?
For 2026, apply a 1.10% rate to the first $750,000 of your sale price, then 1.28% on amounts from $750,001 to $1,525,000. Then add King County's local REET of 0.50% on the full sale price. For example, on a $776,000 sale: state REET = ($750,000 × 1.10%) + ($26,000 × 1.28%) = $8,583. Add King County local REET of $3,880. Total: approximately $12,463.
Did Washington's capital gains tax change for home sales in 2026?
No. Washington State's capital gains excise tax does not apply to real estate sales. Your primary residence sale is exempt. Federal exclusions still apply — up to $250,000 for single filers and $500,000 for married couples who've lived in the home at least 2 of the last 5 years. For more, see How to Avoid Capital Gains Tax When Selling Your Home in Shoreline, WA.
Does REET apply the same way in Edmonds and Mountlake Terrace?
The state REET rates and tier structure are the same statewide, including in Edmonds and Mountlake Terrace. What varies is the local REET rate added on top, which depends on which county your property falls in. Edmonds is in Snohomish County; Mountlake Terrace homes may fall in either Snohomish or King County depending on their specific address.
Is REET negotiable — can a buyer agree to pay it?
REET is the seller's legal responsibility in Washington State, but there's nothing preventing a buyer from agreeing to cover it as part of offer negotiations. In practice this is rare, and in a balanced market buyers generally won't offer it. Your purchase and sale agreement governs who actually pays, so discuss this with your agent before you get into offer negotiations.
The 2026 REET change is modest — a few hundred dollars for most Shoreline sellers — but it's a reminder that your net proceeds calculation needs to be current. The numbers change. The market changes. What you'll actually walk away with depends on your specific sale price, your mortgage balance, your title situation, and a half-dozen other variables that don't show up in a quick online estimate.
The best time to get a real net sheet is before you set a list price — not after you've accepted an offer and started counting on a number that was never quite right.
If you're working through your own situation and want to see what you'd actually net, I'm happy to run the numbers with you. Reach out anytime.
About Samantha Schlegel
Samantha Schlegel is a residential listing specialist serving Shoreline and the greater Seattle area, with a focus on sellers navigating complex situations like probate, inherited homes, divorce, and relocation. She believes every seller deserves a strategy tailored to their real circumstances, not a one-size-fits-all approach. Samantha works with Compass Real Estate and is known for guiding clients through tough transitions with clarity and care.
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