Selling your North Seattle home and trying to pin down your net proceeds? Real Estate Excise Tax can feel confusing, especially with state tiers and a separate Seattle rate. You deserve clear numbers before you list. In this guide, you’ll learn what REET is, the current 2025 rates, who pays, common exemptions, real examples, and the steps you will see at closing in King County. Let’s dive in.
REET basics for North Seattle sellers
Real Estate Excise Tax is a tax on the sale of real property in Washington. It is typically paid by the seller at closing, and the county treasurer collects it on the date of sale. If the seller does not pay, the buyer can be held liable. You can review definitions, deadlines, and rules on the Washington Department of Revenue’s Real Estate Excise Tax page at the Department of Revenue’s REET page](https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax).
2025 rates and how tax is calculated
As of April 1, 2025, Seattle sellers pay a combination of the state graduated REET and a local flat rate.
State graduated tiers
The state tax uses marginal bands. Only the portion of your price within each band is taxed at that band’s rate:
- Up to $525,000: 1.10%
- $525,000.01 to $1,525,000: 1.28%
- $1,525,000.01 to $3,025,000: 2.75%
- Over $3,025,000.01: 3.00%
Seattle local rate
- Seattle local REET: 0.50% of the full sale price. This is added to the state calculation. See the Department of Revenue’s local-rates table effective April 1, 2025](https://dor.wa.gov/sites/default/files/2025-03/84%200013_April25.pdf) to confirm the current Seattle location code and rate.
Sample REET on common North Seattle prices
Below are simple, rounded examples that apply the state bands plus Seattle’s 0.50% local rate. These do not include small fees noted later.
Example A: $800,000 sale
- State: $525,000 at 1.10% = $5,775; $275,000 at 1.28% = $3,520; state total = $9,295.
- Local: 0.50% of $800,000 = $4,000.
- Estimated total REET: about $13,295.
Example B: $1,500,000 sale
- State: $525,000 at 1.10% = $5,775; $975,000 at 1.28% = $12,480; state total = $18,255.
- Local: 0.50% of $1,500,000 = $7,500.
- Estimated total REET: about $25,755.
Example C: $3,500,000 sale
- State: $525,000 at 1.10% = $5,775; $1,000,000 at 1.28% = $12,800; $1,500,000 at 2.75% = $41,250; $475,000 at 3.00% = $14,250; state total = $74,075.
- Local: 0.50% of $3,500,000 = $17,500.
- Estimated total REET: about $91,575.
Example D: $6,000,000 sale
- State: $525,000 at 1.10% = $5,775; $1,000,000 at 1.28% = $12,800; $1,500,000 at 2.75% = $41,250; $2,975,000 at 3.00% = $89,250; state total = $149,075.
- Local: 0.50% of $6,000,000 = $30,000.
- Estimated total REET: about $179,075.
Who pays, when, and small fees
By practice, you as the seller pay REET at closing. For deeded transfers, payment is due to the county treasurer on the date of sale. If unpaid, the buyer may be liable for the tax. The Department of Revenue details timing and liability on its REET page](https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax).
Expect a $5 state technology fee on each transfer, and an extra $5 affidavit processing fee if you claim a full exemption. If REET is late, penalties apply at 5% after one month, 10% after two months, and 20% after three months, plus interest that accrues monthly.
Exemptions and special situations
Some transfers can be exempt, including gifts, inheritance or devise, and certain transfers due to dissolution of marriage or domestic partnerships. Specific affordable-housing and nonprofit transactions may also qualify. Only one exemption can be claimed per transfer, and gift claims require a supplemental statement. See the Department of Revenue’s guidance on exemptions and required documentation on the REET page](https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax).
A separate set of rules covers controlling-interest transfers in entities that own real property. If 50% or more of an entity changes hands within a 36‑month period, REET may apply and reporting timelines are different. You can confirm definitions and timing on the same Department of Revenue page](https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax).
Your closing documents and filing
Your escrow or title company will prepare the Real Estate Excise Tax Affidavit and submit payment to the King County Treasurer. Forms and instructions are available from the Department of Revenue’s REET forms library](https://dor.wa.gov/get-form-or-publication/forms-subject/real-estate-excise-tax). Keep sale records and any exemption documentation for the minimum periods noted by the Department of Revenue, as audits can request them.
A quick seller checklist
- Verify the property’s jurisdiction so the correct Seattle location code and 0.50% local rate are used. You can confirm current local codes and rates in the Department of Revenue’s April 1, 2025 table](https://dor.wa.gov/sites/default/files/2025-03/84%200013_April25.pdf).
- Ask escrow to compute REET using the state bands plus Seattle’s flat rate, and include it on your closing statement.
- Review and sign the REET Affidavit. Escrow will submit payment to the county treasurer on the sale date.
- If claiming an exemption, include the correct code and any required supplemental statements.
- Retain your sale and exemption records for the Department of Revenue’s required timeframe.
For local filing logistics, office details, and county process, see King County’s recorder and treasurer guidance on real estate excise tax](https://wcms-stage-a-cd.kingcounty.gov/en/dept/executive-services/certificates-permits-licenses/records-licensing/recorders-office/real-estate-excise-tax).
Watch for potential changes
Lawmakers have discussed proposals that could change state tiers or allow more local REET options to fund housing. One example is HB 1628 materials from recent sessions. Always confirm current law and rates before closing by checking the Department of Revenue’s pages and the latest local-rates table, and you can review a bill report summary for context in the HB 1628 report](https://app.leg.wa.gov/documents/billdocs/2023-24/Htm/Bill%20Reports/House/1628%20HBA%20LG%2023.htm).
Plan your net with a trusted advisor
Understanding REET early helps you price with confidence and avoid surprises at closing. With a finance background and a concierge approach, I help you model your net proceeds, coordinate escrow and affidavit details, and bring your home to market with elevated presentation.
If you are planning a sale in North Seattle or across the Eastside, reach out to Mari Moline to get a clear, data‑driven plan for your next move.
FAQs
Who pays REET on a North Seattle home sale?
- The seller typically pays at closing, and the buyer can be liable if it is not paid, according to the Department of Revenue’s REET rules.
What is Seattle’s local REET rate in 2025?
- As of April 1, 2025, Seattle’s local rate is 0.50% of the sale price, added to the state tiers.
When is REET due for King County closings?
- For deeded sales, payment is due to the county treasurer on the date of sale, and escrow usually remits it with the affidavit.
Are gifts or family transfers exempt from Washington REET?
- Many gifts and some family transfers can be exempt if they meet Department of Revenue criteria, and gift claims require a supplemental statement.
Do first‑time homebuyers get a REET exemption in Seattle?
- There is no broad first‑time homebuyer exemption for typical resale transactions; exemptions are specific and must meet Department of Revenue rules.
How do LLC or entity ownership changes trigger REET?
- If 50% or more of an entity that owns real property transfers within 36 months, it can be a taxable controlling‑interest transfer with special reporting timelines.
