Washington's Real Estate Excise Tax rate is:
Question & Answer
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A flat 1%
Washington does not use a flat 1% rate for its Real Estate Excise Tax. This misconception likely stems from knowledge of other states' flat tax rates or confusion with different types of real estate taxes.
Graduated based on sale price, ranging from 1.1% to over 3%
No transfer tax
Washington does have a transfer tax (REET). While some states have no transfer tax, Washington is not one of them. This option might be chosen by students who confuse Washington with other states.
0.5% flat
Washington's REET is not a flat 0.5% rate. Some states do use lower flat rates, but Washington specifically employs a graduated system that increases with higher sale prices.
Why is this correct?
Washington's REET uses a graduated rate structure based on sale price, with rates ranging from 1.1% for lower-priced properties to over 3% for higher-value transactions. This graduated approach reflects the state's method of taxing real estate transfers based on property value.
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