Washington’s REET is authorized by RCW 82.45.060 (state rates) and RCW 82.46.010 / 82.46.035 (local surcharges).[1][2] The current graduated thresholds — $525,000 / $1,525,000 / $3,025,000 — were CPI-adjusted and took effect January 1, 2023, replacing the prior $500,000 / $1,500,000 / $3,000,000 thresholds.[1] The seller submits DOR Form 84-0001a (the REET Affidavit) and payment to the county treasurer; the treasurer stamps the deed, which can then be recorded with the county auditor.[3]
1 Determine the Gross Selling Price (Tax Base)
REET is calculated on the gross selling price — the total consideration received by the seller — as defined in RCW 82.45.030.[4] This includes every dollar the buyer pays, whether in cash or by taking over the seller’s existing debt. If the buyer assumes an outstanding mortgage of $150,000 and also pays $350,000 in cash, the full $500,000 is the taxable base, not just the cash portion. The logic is the same as in most state transfer taxes: debt relief received by the seller is part of the price.
For controlling interest transfers — where a buyer acquires 50% or more of an entity (LLC, corporation, or partnership) that owns Washington real property — the taxable amount is the fair market value of the underlying real property multiplied by the percentage of entity interest being transferred. Buying 60% of an LLC that owns a $1,000,000 building means the REET base is $600,000 (60% × $1,000,000). These transfers must be reported to the Washington Department of Revenue (DOR) within 5 days of the transfer date using a separate Controlling Interest REET Affidavit.[5]
Gross Selling Price = Cash Consideration + Assumed Mortgages / Liens
Example A — $600,000 Residential Sale, King County
A seller accepts $600,000 cash for a single-family home in Bellevue. The buyer secures a new mortgage; no existing debt is assumed by the buyer.
Gross Selling Price: $600,000 + $0 = $600,000
Example B — $2,000,000 Residential Sale, Spokane County
A seller transfers a large residential property in Spokane for $1,850,000 in cash. The buyer also assumes an existing $150,000 mortgage that the seller will not pay off at closing.
Gross Selling Price: $1,850,000 + $150,000 = $2,000,000
2 Classify the Property — Standard, Ag/Timberland, or Mixed
Before applying any rates, the calculator must know whether the property is classified as agricultural land or timberland under Washington law. If the sale involves classified agricultural or timberland as the predominant use, a special flat rate of 1.28% applies to the entire sale price instead of the graduated schedule — regardless of how high the price is. This rule is found in RCW 82.45.060(4).[1]
For sales that include both classified (ag/timber) and non-classified parcels, Washington uses a predominant use test under WAC 458-61A-1001.[6] The calculator blends the percentage of the total acreage and value that each type represents. If the ag/timber share is 50% or more, the entire sale is taxed at the flat 1.28%. If it falls below 50%, the graduated rates apply to the full price. This means a farm with a small commercial outbuilding could still qualify for the flat ag rate — or not — depending on the land-type mix.
HB 1983 (2026): Recent legislation expanded the definition of timberland for transfers to governmental entities. Sellers transferring timberland to state, county, or municipal governments should verify current classification rules under the updated definition before assuming the flat rate applies.
| Sale Price Bracket | State Rate | Tax on This Bracket | Cumulative State Tax at Top |
|---|---|---|---|
| $0 – $525,000 | 1.10% | Up to $5,775.00 | $5,775.00 |
| $525,000.01 – $1,525,000 | 1.28% | Up to $12,800.00 | $18,575.00 |
| $1,525,000.01 – $3,025,000 | 2.75% | Up to $41,250.00 | $59,825.00 |
| Over $3,025,000 | 3.00% | 3.00% on all above $3.025M | — |
| Agricultural / Timberland | 1.28% flat | 1.28% on entire price | — (no brackets) |
Example A — Standard Residential, Graduated Brackets Apply
The Bellevue home is a standard residential property with no agricultural classification. Graduated rate schedule applies.
At $600,000, the sale straddles the first two brackets: $525,000 at 1.10% and $75,000 at 1.28%.
Example B — Standard Residential, Multiple Brackets Engaged
The Spokane property is a residential estate with no ag/timber classification. Graduated rates apply.
At $2,000,000, three brackets are engaged: $525,000 at 1.10%, the next $1,000,000 at 1.28%, and the remaining $475,000 at 2.75%.
3 Check for Exemptions
Before computing any tax, the calculator checks whether the transfer qualifies for a full exemption under the WAC 458-61A series.[7] A fully exempt transfer owes no REET — but a REET Affidavit (DOR Form 84-0001a) is still required on every deed recording, regardless of exemption status. The affidavit must cite the specific WAC or RCW section that authorizes the exemption. Washington DOR maintains an online Exemption Code List at dor.wa.gov for reference.
The most common exemptions in the calculator are:
- Gift or Inheritance (WAC 458-61A-201) — Transfers made by gift or received through inheritance are exempt. No consideration is changing hands, so no tax is owed.
- Spouse / Domestic Partner (WAC 458-61A-210) — Transfers between spouses or registered domestic partners, including transfers that occur upon marriage or upon formation of a domestic partnership, are exempt.
- Divorce / Dissolution of Marriage (WAC 458-61A-210) — Court-ordered transfers between divorcing spouses or domestic partners are exempt. The court order must be referenced on the REET Affidavit.
- Government Transfer (WAC 458-61A-205) — Transfers to or from any federal, state, county, or municipal government entity are exempt. This covers deeds to the U.S. government, Washington State, counties, cities, and port districts.[7]
- Condemnation / Eminent Domain (WAC 458-61A-206) — Transfers made pursuant to condemnation proceedings are exempt. A government body taking private property through eminent domain owes no REET on the transaction.[7]
- Nonprofit Affordable Housing (RCW 82.45.025) — Effective 2023, certain transfers to qualifying nonprofit affordable housing organizations may qualify for partial or full exemption. Specific income, regulatory, and DOR approval criteria must be met; a Supplemental Statement must accompany the REET Affidavit.[8]
Example A — Spousal Transfer, No Consideration (Exempt)
A married couple decides to transfer their King County home solely into one spouse’s name for estate planning purposes. No money changes hands.
Fully exempt — REET = $0. WAC 458-61A-210 DOR Form 84-0001a must still be filed with the county treasurer, with the WAC 458-61A-210 exemption code cited on the form.
Example B — Government Condemnation (Exempt)
The Washington State Department of Transportation acquires a privately owned commercial parcel in Spokane County through a condemnation action for a highway widening project.
Fully exempt — REET = $0. WAC 458-61A-206 REET Affidavit required; exemption code WAC 458-61A-206 cited. The seller (the private property owner) owes no REET on a transfer resulting from condemnation.
4 Calculate the State REET
For taxable transfers, the state REET is calculated by applying the graduated brackets to the gross selling price from Step 1, using the classification from Step 2. Each bracket applies only to the portion of the price that falls within that bracket — exactly like the federal income tax system. The total state REET is the sum of the tax computed on each bracket separately.
The cumulative amounts at each bracket ceiling are fixed reference points: $5,775.00 at $525,000; $18,575.00 at $1,525,000; and $59,825.00 at $3,025,000. For any sale above $525,000, you always start with the tax accumulated from all lower brackets and then add only the rate for the current bracket on the amount that falls within it.
State REET (standard): First $525,000 × 1.10% = up to $5,775.00 Next $1,000,000 × 1.28% = up to $12,800.00 (cumulative: $18,575.00) Next $1,500,000 × 2.75% = up to $41,250.00 (cumulative: $59,825.00) Amount over $3,025,000 × 3.00% = no cap State REET (ag/timberland): Entire price × 1.28% flat
Example A — $600,000, Graduated Rate (Two Brackets)
Gross selling price: $600,000. Standard residential — graduated schedule.
Bracket 1: $525,000 × 1.10% = $5,775.00
Bracket 2: $75,000 × 1.28% = $960.00
State REET = $6,735.00
Example B — $2,000,000, Graduated Rate (Three Brackets)
Gross selling price: $2,000,000. Standard residential — graduated schedule.
Bracket 1: $525,000 × 1.10% = $5,775.00
Bracket 2: $1,000,000 × 1.28% = $12,800.00
Bracket 3: $475,000 × 2.75% = $13,062.50
State REET = $31,637.50
Note that only $475,000 of the $2,000,000 price falls in the 2.75% bracket — the first $1,525,000 is taxed at lower rates. The 2.75% rate does not apply to the whole price, only to the slice above $1,525,000.
5 Add the Local County / City Surcharge
In addition to the state REET, each Washington county levies a local surcharge authorized by RCW 82.46.010 (first-quarter, 0.25%) and RCW 82.46.035 (second-quarter, another 0.25%).[2] Most counties that have adopted Growth Management Act (GMA) planning levy both quarters for a combined local rate of 0.50%. A smaller number of rural counties levy only the first quarter at 0.25%. The local surcharge is always calculated on the full gross selling price — there are no brackets or thresholds at the local level.
Counties charging 0.25% include Columbia, Ferry, Garfield, Lincoln, Pend Oreille, Skamania, Stevens, and Wahkiakum. All other Washington counties charge 0.50%. Starbuck, a small city in Columbia County, is a rare jurisdiction with a 0.00% local rate, but this is an exception rather than the rule.
Seattle city transfer tax: Properties within Seattle city limits are subject to a separate graduated Real Estate Excise Tax imposed under the Seattle Municipal Code — not RCW. The Seattle city tax runs 0.50% on the first $1,500,000; 1.75% on $1,500,000 to $5,000,000; and 2.25% above $5,000,000. This city tax is charged in addition to the state REET and the King County 0.50% surcharge. Always verify current Seattle rates with the City of Seattle Finance & Administrative Services office.[9]
Local REET = Gross Selling Price × County Local Rate (0.25% or 0.50%)
Example A — King County, 0.50% Local Surcharge
King County levies the full 0.50% combined local surcharge.
Local REET: $600,000 × 0.50% = $3,000.00
Example B — Spokane County, 0.50% Local Surcharge
Spokane County also levies the full 0.50% combined local surcharge.
Local REET: $2,000,000 × 0.50% = $10,000.00
6 Total the REET and File Before Recording
The total REET due is the sum of the state REET (Step 4) and the local surcharge (Step 5). This total must be paid to the county treasurer before the deed can be recorded with the county auditor. The treasurer reviews the REET Affidavit, collects payment, and stamps the deed or affidavit as proof of payment. The stamped deed can then be submitted to the county auditor for recording. Under RCW 82.46.050, the seller (grantor) is the party primarily responsible for paying REET.[10] In practice, escrow typically collects REET from the seller at closing and remits it to the county treasurer.
If REET goes unpaid, it becomes a lien on the property — a serious consequence that can block future sales or refinancing.[10] The DOR maintains that REET is due within 30 days of the date of sale. Electronic recording (e-recording) is accepted in many counties through services such as Simplifile and CSCGlobal, making it possible to submit the affidavit and payment without physically visiting the courthouse.[3]
Total REET Due = State REET + Local REET (Surcharge) Paid to: County Treasurer BEFORE deed recording Seller (grantor) is primarily responsible — RCW 82.46.050
Example A — $600,000 Sale, King County (Full Calculation)
Gross selling price: $600,000 | Standard residential | King County 0.50% local | No exemption
State REET: $525,000 × 1.10% + $75,000 × 1.28% = $5,775.00 + $960.00 = $6,735.00 SELLER PAYS
Local surcharge (King County 0.50%): $3,000.00
Total REET Due = $9,735.00 | Effective rate: 1.6225% | Form: DOR 84-0001a + recording fees
Example B — $2,000,000 Sale, Spokane County (Full Calculation)
Gross selling price: $2,000,000 | Standard residential | Spokane County 0.50% local | No exemption
State REET: $5,775.00 + $12,800.00 + $13,062.50 = $31,637.50 SELLER PAYS
Local surcharge (Spokane County 0.50%): $10,000.00
Total REET Due = $41,637.50 | Effective rate: 2.0819% | Form: DOR 84-0001a + recording fees
A property seller in Spokane pays $31,902.50 more in REET on a $2,000,000 sale than on a $600,000 sale — the graduated scale concentrates the tax burden on higher-priced transactions.
Special Cases Worth Knowing
Agricultural and Timberland — The Flat 1.28% Rate FLAT RATE
Sellers of land classified as agricultural or timberland always use the flat 1.28% rate on the full sale price, bypassing the graduated schedule entirely. On a $500,000 farmland sale in Yakima County (0.50% local), the state REET is $500,000 × 1.28% = $6,400 and the local surcharge is $2,500, for a total of $8,900. The flat rate is neither lower nor higher than the graduated rate in all cases — it happens to equal the second bracket rate — but it removes the advantage of the lower first-bracket 1.10% rate that applies on the first $525,000 of a standard residential sale.[1]
The Mixed-Use Predominant-Use Test
When a single transaction includes both classified (ag/timber) and non-classified parcels, the rate for the entire sale — not just the ag portion — depends on whichever use is dominant. If the ag/timber component represents 50% or more of the combined area and value, the whole price is taxed at the flat 1.28%. If it represents less than 50%, the graduated schedule applies to the entire price. Sellers should document the acreage and assessed value of each parcel type carefully, as WAC 458-61A-1001 can shift thousands of dollars of tax depending on which side of the 50% line the transaction falls.[6]
Controlling Interest Transfers — 5-Day Deadline
Purchasing a controlling interest (50% or more) in a business entity that owns Washington real property triggers REET as if the property had been deeded directly. The taxable base is the fair market value of the real property multiplied by the percentage interest transferred. These transfers are reported to WA DOR — not the county treasurer — using the Controlling Interest REET Affidavit, and must be filed within 5 days of the transfer date. Interest and penalties accrue if payment is delayed beyond 30 days.[5]
Short Sales and Distressed Properties
If a property sells for less than the outstanding mortgage balance, REET is calculated on the actual sale price, not the unpaid debt. A distressed sale at $250,000 — even if the seller owes $400,000 — is taxed on $250,000 only. Unpaid liens that are forgiven or written off by the lender do not add to the REET base. This reflects the statutory definition of “consideration” in RCW 82.45.030: only value actually received by the seller is taxed.[4]
Filing Requirements and Forms
All Washington real property transfers — taxable and exempt alike — require a REET Affidavit to be submitted to the county treasurer before the deed can be recorded. The filing workflow is: prepare the affidavit, pay REET to the county treasurer, obtain the treasurer’s payment stamp, then submit the stamped deed to the county auditor for recording.
| Form | Name | When Required |
|---|---|---|
| DOR 84-0001a | Real Estate Excise Tax Affidavit | Every deed — always required, even for fully exempt transfers; filed with county treasurer before recording |
| Supplemental Statement | REET Supplemental Statement | Required for certain exempt or partial-exemption transfers; attached to the Affidavit with WAC/RCW citation |
| CI Affidavit | Controlling Interest REET Affidavit | Controlling interest transfers (≥50% entity interest); filed with WA DOR (not county treasurer) within 5 days |
| Ag/TL Worksheet | Agricultural/Timberland Worksheet | Attach when claiming 1.28% flat rate; documents land classification and predominant use determination |
| Recording Fees | County Auditor Recording Fee | Approx. $35 base + $9.50 per page; paid separately to the county auditor; not included in REET |
References
- RCW 82.45.060 — State REET Rate Schedule (CPI-Adjusted).
Establishes the four-bracket graduated state REET rate structure: 1.10% on the first $525,000; 1.28% on $525,000.01–$1,525,000; 2.75% on $1,525,000.01–$3,025,000; and 3.00% on amounts above $3,025,000. The thresholds are CPI-adjusted annually; the current $525K/$1.525M/$3.025M values took effect January 1, 2023. Subsection (4) establishes the flat 1.28% rate for agricultural and timberland sales. Also incorporates the 2026 HB 1983 amendment expanding the timberland definition for transfers to governmental entities.
Washington State Legislature: app.leg.wa.gov — RCW 82.45.060 - RCW 82.46.010 / RCW 82.46.035 — Local REET Surcharges (County and City).
Authorizes counties to levy local REET surcharges in addition to the state tax. RCW 82.46.010 authorizes a first-quarter surcharge of up to 0.25%; RCW 82.46.035 authorizes a second-quarter surcharge of another 0.25% for counties subject to GMA planning requirements. Most Washington counties levy the full combined 0.50%; rural counties without GMA obligations typically levy only 0.25%. Revenue from local REET supports affordable housing and infrastructure programs in the levying jurisdiction.
Washington State Legislature: app.leg.wa.gov — RCW 82.46.010 - Washington DOR — REET Affidavit (DOR Form 84-0001a) and Filing Instructions.
The official REET Affidavit required on every deed recorded in Washington, whether taxable or exempt. Filed with the county treasurer before the deed is submitted to the county auditor for recording. The treasurer reviews the affidavit, collects REET payment, and affixes a payment stamp. Instructions include guidance on completing the affidavit for standard sales, multiple-parcel transactions, exempt transfers, and agricultural/timberland transactions. Electronic filing is supported in many counties via Simplifile and CSCGlobal e-recording platforms.
Washington DOR: dor.wa.gov — REET Forms - RCW 82.45.030 — Definition of “Selling Price” / Gross Consideration.
Defines “selling price” for REET purposes as the total consideration paid — including cash, the face amount of any promissory note, and the amount of any debt (mortgage, lien, or other encumbrance) assumed by the buyer that is not discharged by the seller at closing. For gift transfers or transfers for nominal consideration, the selling price is the fair market value of the property. For controlling interest transfers, the selling price is the FMV of the real property multiplied by the percentage interest transferred.
Washington State Legislature: app.leg.wa.gov — RCW 82.45.030 - RCW 82.45.080 — Controlling Interest Transfers; 5-Day Reporting Requirement.
Provides that REET applies to transfers of a controlling interest (50% or more) in any entity that owns Washington real property. The taxable amount is the FMV of the underlying real property multiplied by the percentage interest transferred. The controlling interest affidavit must be filed with the Washington DOR (not the county treasurer) within 5 days of the transfer. Interest and penalties accrue if the tax is not paid within 30 days. A separate DOR Controlling Interest REET Affidavit form is required.
Washington State Legislature: app.leg.wa.gov — RCW 82.45.080 - WAC 458-61A-1001 — Multiple Parcels and Predominant Use Rule.
Provides detailed rules for allocating the REET tax base when a single transaction includes multiple parcels or a mix of classified (agricultural/timberland) and non-classified land. The predominant use test averages the percentage of the total acreage and the percentage of the total assessed value represented by each land type. If the ag/timber share is 50% or greater, the entire sale is taxed at the flat 1.28% rate; otherwise, the graduated rate schedule applies to the full price. Includes worked examples for common mixed-parcel scenarios.
Washington Administrative Code: apps.leg.wa.gov — WAC 458-61A-1001 - WAC 458-61A Series — REET Exemptions (Full List).
The comprehensive administrative code chapters governing REET exemptions. Key exemptions include: WAC 458-61A-201 (gifts and inheritances); WAC 458-61A-205 (transfers to/from governmental entities); WAC 458-61A-206 (condemnation/eminent domain); WAC 458-61A-210 (transfers between spouses and domestic partners, including divorce settlements). Exempt transfers still require Form 84-0001a to be filed with the county treasurer with the applicable WAC exemption code cited. WA DOR maintains an online Exemption Code List updated as rules change.
Washington Administrative Code: apps.leg.wa.gov — WAC 458-61A - RCW 82.45.025 — Nonprofit Affordable Housing REET Exemption (Effective 2023).
Authorizes a partial or full REET exemption for transfers to or from qualifying nonprofit affordable housing organizations. The exemption requires the organization to meet specific income-targeting criteria, maintain regulatory agreements restricting affordability, and obtain DOR approval. A Supplemental Statement must accompany the REET Affidavit when claiming this exemption. Sellers and transferees should confirm current eligibility requirements with WA DOR before relying on this exemption at closing.
Washington State Legislature: app.leg.wa.gov — RCW 82.45.025 - Seattle Municipal Code — City Real Estate Excise Tax (Graduated).
The City of Seattle imposes its own graduated Real Estate Excise Tax under the Seattle Municipal Code, separate from and in addition to Washington State REET and the King County local surcharge. As of the most recent schedule: 0.50% on the first $1,500,000; 1.75% on $1,500,000–$5,000,000; and 2.25% on amounts above $5,000,000. Sellers of Seattle properties must pay both the state/county REET and the Seattle city transfer tax. Current rates and filing instructions are available from the City of Seattle Finance & Administrative Services department.
City of Seattle: seattle.gov — Real Estate Excise Tax - RCW 82.46.050 / RCW 82.46.060 — Seller Liability and Pre-Recording Payment Requirement.
RCW 82.46.050 makes the seller (grantor) primarily liable for payment of REET. RCW 82.46.060 requires that REET be paid and the affidavit stamped by the county treasurer before the deed or affidavit can be accepted for recording by the county auditor. If REET goes unpaid, it becomes a lien on the real property. Island County and other counties have published treasurer guidance confirming that payment — including through e-recording — is a mandatory prerequisite to deed recordation.
Washington State Legislature: app.leg.wa.gov — RCW 82.46.050
Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. Washington REET rules are complex and fact-specific. Always confirm current rates and exemption eligibility with the Washington Department of Revenue (dor.wa.gov), the county treasurer, or a qualified Washington real estate attorney before closing. Rates and thresholds reflect RCW 82.45.060 as CPI-adjusted effective January 1, 2023, and current as of 2026.