2027 Washington Real Estate Excise Tax Bracket updates

Washington's graduated real estate excise tax (REET) brackets move up $26,000 on January 1, 2027. 

The rates themselves don't change, so the effect is a small tax cut for most sales over $525,000 — roughly $47 to $494, depending on price. Every four years, the Department of Revenue adjusts the thresholds under RCW 82.45.060, and this is the 2027 reset.

The new brackets

Each rate applies only to the slice of the price inside its bracket, like income tax brackets. Every threshold rises by $26,000.

State rate	Through Dec. 31, 2026	Starting Jan. 1, 2027
1.10%	$525,000 or less	$551,000 or less
1.28%	$525,000.01 – $1,525,000	$551,000.01 – $1,551,000
2.75%	$1,525,000.01 – $3,025,000	$1,551,000.01 – $3,051,000
3.00%	Over $3,025,000	Over $3,051,000

Classified agricultural land and timberland stay at a flat 1.28% state rate. Source: Washington DOR

What it saves

The savings cap at $494 on the state portion, no matter how high the price goes. That's because only $26,000 slices move to a lower rate.

Sale price	State REET savings in 2027
$525,000 or less	$0 (no change)
$525,001 – $551,000	Up to $46.80
$551,001 – $1,525,000	$46.80
$1,525,001 – $1,551,000	$46.80 to $429
$1,551,001 – $3,025,000	$429
$3,025,001 – $3,051,000	$429 to $494
Over $3,051,000	$494

Two quick examples. An $800,000 home pays $9,295 in state REET in 2026 and $9,248.20 in 2027. A $2,000,000 home pays $31,637.50 in 2026 and $31,208.50 in 2027, a $429 difference.

Year-end timing

The new thresholds apply to sales dated January 1, 2027 or later. DOR treats the date of sale as the date the deed is executed and delivered to the buyer — generally the notarization date — not the recording date.

For a deal already set to close in late December, the savings rarely justify moving the date. A few hundred dollars can be outweighed by a rate lock, a 1031 deadline, a lease end, or a buyer's need to move. Where a closing is already flexible and the price is above $1,525,000, it's worth mentioning so the client can decide.

REET is usually paid by the seller, so sellers are the ones to flag. If the seller doesn't pay it, the buyer becomes liable.

The fine print

• Local REET still applies. Cities and counties add their own REET on top of the state rate, and the 2027 change doesn't touch it. Check DOR's local rate table for the property's location code.
• Ag and timberland are unaffected. Qualifying classified land stays at a flat 1.28% state rate.
• Multiple parcels are added together. When several parcels sell in one transaction, the brackets apply to the combined price.
• Fees don't change. The $5 state technology fee per transfer still applies.

This post is general information, not tax or legal advice. Confirm figures for a specific sale with escrow or a tax professional.

For more information on Buying or Selling Lake Stevens, or Snohomish County Commercial Real Estate, you can find our Everett Commercial Real Estate Brokerage information below. 

Weitz Commercial

Scott Weitz: 206.306.4034

Scott@weitzcommercial.com 

Nathan Cuda: 425.268.9796

Nathan@weitzcommercial.com