A property in Seattle, Washington sells for $650,000. Under Washington's graduated Real Estate Excise Tax (REET) structure (RCW Chapter 82.45), what is the total REET owed on this transaction? (Rates: 1.1% on the first $525,000; 1.28% on the amount from $525,001 to $1,525,000)
Correct Answer
C) $7,375
Washington REET is calculated by tier. The first $525,000 is taxed at 1.1%, producing $5,775. The remaining $125,000 is taxed at 1.28%, producing $1,600. The total REET is $5,775 + $1,600 = $7,375.
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