Washington's Real Estate Excise Tax rate is:
Question & Answer
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A flat 1%
A flat 1% rate was not Washington's REET structure even before the 2020 reform; the prior rate was a flat 1.28%, and the post-2020 law replaced that with a graduated system, so a flat 1% has never been the applicable rate.
Graduated based on sale price, ranging from 1.1% to over 3%
No transfer tax
Washington absolutely has a real estate transfer tax — REET under RCW 82.45 is one of the state's significant revenue sources, and claiming no transfer tax exists is factually incorrect and would mislead anyone relying on this answer in practice.
0.5% flat
A flat 0.5% rate has never been Washington's REET structure; this figure does not correspond to any tier or historical rate under Washington's excise tax law and appears to be a fabricated distractor.
Why is this correct?
Under RCW 82.45 and the amendments effective January 1, 2020, Washington's REET uses a four-tier graduated rate: 1.1% on the portion of the selling price up to $500,000; 1.28% on the portion between $500,000 and $1.5 million; 2.75% on the portion between $1.5 million and $3 million; and 3% on any portion exceeding $3 million. This tiered structure means the effective rate increases as the sale price rises, making the tax progressive rather than flat. The correct answer accurately describes this graduated, price-dependent rate structure.
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