By Bret Butler, Founding Broker, Compass Washington | Butler & Butler at Compass | Last updated October 27, 2026
Washington REET 2027 brings slightly higher price thresholds for Washington’s real estate excise tax beginning January 1, 2027, but the tax rates themselves are staying the same. For sellers of a $1M–$2M home, that means about $47 less in state tax below roughly $1.525 million and $429 less above $1.551 million. At Butler & Butler at Compass, our advice to Eastside sellers is simple: the savings are welcome, but they’re not significant enough to determine when you should sell your home.
Butler & Butler at Compass is Bret Butler and our family team (Lisa, Greg and Sunny Butler), bringing over 100 years of combined experience helping sellers throughout Woodinville, Redmond, Kirkland, Bellevue, Sammamish and the greater Eastside. Here’s what you need to know about the new tax thresholds, local rates and how they affect your proceeds when you sell.
Key numbers: Washington REET 2027
- 2027 tax thresholds (sales from January 1, 2027): 1.1% up to $551,000; 1.28% to $1,551,000; 2.75% to $3,051,000; 3.0% above.
- Savings compared to 2026: about $47 on sales from $551,000 to about $1.525 million; $429 on sales from $1.551 million to about $3.025 million.
- Local REET: 0.50% in Woodinville, Redmond, Kirkland, Bellevue, Sammamish and Issaquah (DOR table effective May 1, 2026).
- Example, $1.5 million sale in 2027: $18,208 state plus $7,500 local (about $25,708 total).
What is changing with Washington’s real estate excise tax in 2027?
Washington uses a graduated real estate excise tax, meaning different portions of your sale price are taxed at different rates. Under RCW 82.45.060, the Department of Revenue (DOR) adjusts the price thresholds every four years. Beginning January 1, 2027, each threshold increases by $26,000. The actual tax rates remain unchanged.
| Portion of the sale price taxed at | Sales through Dec. 31, 2026 | Sales from Jan. 1, 2027 |
|---|---|---|
| 1.1% | Up to $525,000 | Up to $551,000 |
| 1.28% | $525,000 to $1,525,000 | $551,000 to $1,551,000 |
| 2.75% | $1,525,000 to $3,025,000 | $1,551,000 to $3,051,000 |
| 3.0% | Above $3,025,000 | Above $3,051,000 |
Classified agricultural land and timberland will continue to be taxed at a flat 1.28% state rate.
How much REET will I pay on a $1M–$2M home in 2027?
To put these changes into perspective, here’s what the tax looks like at different sale prices using DOR’s published thresholds and the 0.50% local rate charged by the Eastside cities listed below. All amounts are rounded.
| Sale price | State REET, 2026 sale | State REET, 2027 sale | 2027 savings | Local REET at 0.50% | Example total, 2027 sale |
|---|---|---|---|---|---|
| $1,000,000 | $11,855 | $11,808 | $47 | $5,000 | $16,808 |
| $1,250,000 | $15,055 | $15,008 | $47 | $6,250 | $21,258 |
| $1,500,000 | $18,255 | $18,208 | $47 | $7,500 | $25,708 |
| $1,750,000 | $24,763 | $24,334 | $429 | $8,750 | $33,084 |
| $2,000,000 | $31,638 | $31,209 | $429 | $10,000 | $41,209 |
Here’s an example (not a quote): If you sell your home for $1,750,000 and close in 2027, the state taxes the first $551,000 at 1.1% ($6,061), the next $1,000,000 at 1.28% ($12,800) and the remaining $199,000 at 2.75% ($5,472.50). That brings your state REET to $24,333.50. Add the 0.50% local tax ($8,750) and your total is $33,083.50, or about 1.89% of the sale price. DOR also charges a $5 technology fee on every transfer.
Why does the 2.75% tier matter so much for Eastside sellers?
Because it falls right in the price range where many Eastside homes are selling. Below $1,551,000, each additional dollar is taxed at 1.28% by the state plus 0.50% locally. Once you cross that threshold, the state rate increases to 2.75%. That means every additional $100,000 in sale price results in about $3,250 in total REET instead of $1,780.
Looking at our local market, you can see why this matters. For the three months ending September 2026, Redfin reported a median sale price (all home types) of $1,499,286 in Bellevue, $1,489,291 in Sammamish, $1,249,405 in Woodinville, $1,219,419 in Kirkland and $1,194,406 in Redmond (see our guide to living in Redmond). King County Assessor sales records for October 2025 through September 2026 show the median $1M–$2M sale at $1,550,000 in Sammamish, $1,500,000 in Bellevue, $1,450,000 in Redmond and $1,437,250 in Woodinville.
Does that mean you should price your home just below $1,551,000 to avoid the higher tax? Absolutely not. Selling for $1.6 million still puts considerably more money in your pocket, even after accounting for the additional REET. The goal should always be to maximize your net proceeds, not simply minimize the tax.
What are the local REET rates in Woodinville, Redmond, Kirkland, Bellevue and Sammamish?
In addition to the state tax, sellers pay a local real estate excise tax based on where the property is located. According to DOR’s table effective May 1, 2026, the following rates apply:
| Location (DOR name) | REET location code | Local REET rate |
|---|---|---|
| Woodinville | 1735 | 0.50% |
| Redmond | 1724 | 0.50% |
| Kirkland | 1716 | 0.50% |
| Bellevue | 1704 | 0.50% |
| Sammamish | 1739 | 0.50% |
| Issaquah | 1714 | 0.50% |
| Bothell in King County | 1706 | 0.50% |
| Kenmore | 1738 | 0.50% |
| King County Unincorp. | 1700 | 0.50% |
| Snohomish County Unincorp. | 3100 | 0.50% |
One thing worth keeping in mind is that a Woodinville or Redmond mailing address doesn’t necessarily mean your home is within city limits. Many properties are in unincorporated King County and some Woodinville addresses fall within Snohomish County. Your REET is based on the property’s actual location code, which escrow will verify along with the applicable rate when you sell.
Should I wait until January 2027 to sell my Eastside home?
For most sellers in the $1M–$2M price range, I wouldn’t recommend waiting simply to save on REET. We’re talking about $46.80 on a $1.5 million sale and $429 on a $1.75 million sale. There are more important factors to consider when deciding when to put your home on the market:
- Your actual date of sale matters. DOR uses the date the deed is executed and delivered, which in practice is when it’s notarized. If a December closing moves into January, the 2027 thresholds would apply.
- Market conditions have a much bigger impact. Redfin reports median days on market increasing in Redmond (36, from 22), Kirkland (28, from 22) and Bellevue (24, from 18) over the same three months. Understanding buyer activity and how your home fits into the current market is far more important than a small tax savings.
- Spring continues to see more sales. Across the 10 Eastside areas we track using King County Assessor data, $1M–$2M sales increased from 489 in Q4 2025 to 654 in Q2 2026. Timing your sale around market activity deserves more consideration than the REET adjustment.
If you’re planning to buy another home, the timing and order of those transactions can also make a significant difference. Our buy before you sell guide walks through the options and considerations.
What other costs should a $1M–$2M seller plan for?
REET is only part of the cost of selling a home. You’ll also want to account for real estate commissions, which are always negotiable, title insurance, escrow fees and any repairs or buyer credits negotiated during the sale. We cover these expenses in more detail in our guide to the hidden costs of selling a home in Washington. For questions about income taxes, see the capital gains FAQ below and consult your CPA.
How has Butler & Butler sold homes in and above this price range?
Our team regularly works with sellers at the upper end of the $1M–$2M market and well beyond, including properties that fall into the 2.75% and 3.0% tax tiers. Here are some examples of our recent sales and listings:
| Address | City | Status | Price | Date |
|---|---|---|---|---|
| 9463 221st Pl NE | Redmond | Active (list price) | $1,998,000 | Oct 2026 |
| 18138 NE 130th Pl | Redmond | Active (list price) | $2,189,000 | Oct 2026 |
| 21407 NE Union Hill Rd | Redmond | Sold | $3,866,500 | May 2026 |
| 18049 NE 143rd Pl | Woodinville | Sold | $5,306,000 | Aug 2026 |
| 20220 NE 133rd St | Woodinville | Sold | $4,050,000 | Apr 2026 |
| 18212 244th Ave NE | Woodinville | Sold | $3,700,000 | Apr 2026 |
You can learn more about our experience on Bret Butler’s Compass profile, read our Woodinville seller guide or review our recommendations on how to choose a luxury real estate agent on the Eastside.
Frequently asked questions about Washington REET 2027
What are the Washington REET rates for 2027?
Beginning January 1, 2027, Washington’s state REET is 1.1% on the first $551,000 of the sale price, 1.28% from $551,000 to $1,551,000, 2.75% from $1,551,000 to $3,051,000 and 3.0% above $3,051,000, according to the Washington Department of Revenue. Local REET is charged in addition to the state tax.
How much is the real estate excise tax on a $1.5 million home in Washington?
For a $1,500,000 home sold in 2027, the state REET would be $18,208.20 based on DOR’s published thresholds. In a city charging 0.50% local REET, such as Woodinville or Bellevue, you would add $7,500, bringing the total to about $25,708. Your escrow officer will confirm the final amount.
Does the seller or the buyer pay REET in Washington?
In Washington, the seller typically pays the real estate excise tax. Escrow generally deducts it from the seller’s proceeds at closing. If the seller fails to pay, the Department of Revenue states that the buyer becomes responsible and the unpaid tax can result in a lien against the property.
Should I wait until 2027 to sell my home to save on REET?
In most cases, no. For a $1M–$2M home, the new thresholds save about $47 below roughly $1.525 million and $429 above $1.551 million. Those savings are relatively small compared to the impact of your pricing strategy, current market conditions and the timing of your next home purchase.
What is the local REET rate in Woodinville, Redmond, Kirkland, Bellevue and Sammamish?
According to the Washington Department of Revenue’s local rate table effective May 1, 2026, the rate is 0.50% in Woodinville, Redmond, Kirkland, Bellevue, Sammamish, Issaquah and unincorporated King County. Because rates can change, escrow should confirm the applicable rate before closing.
Do I pay Washington capital gains tax when I sell my house?
No. The Washington Department of Revenue exempts real estate from the state’s capital gains tax. However, federal capital gains taxes may still apply if your gain exceeds the IRS home-sale exclusion of $250,000 ($500,000 for married couples filing jointly). Your CPA can help determine how those rules apply to your situation.
What’s your home worth, and what will you net in 2027?
While the REET changes for 2027 are relatively small, understanding what you’ll actually walk away with when you sell is important. At Butler & Butler at Compass, we help sellers understand their home’s market value and prepare a detailed estimate of REET and other selling expenses before making decisions about listing. Our goal is to give you a clear picture of your potential proceeds so you can plan with confidence. Find out what your home is worth, learn more about how we sell homes on the Eastside or call Bret Butler at 206.604.3350. You’re also welcome to meet our team or contact Butler & Butler to discuss your plans.
This article provides general information and is not intended as tax or legal advice. Your actual REET depends on the final sale price, the property’s location code and classification and any applicable exemptions. Always confirm the figures with your escrow officer or tax professional before making decisions.
Sources (accessed October 27, 2026 unless noted): Washington State Department of Revenue, “Real estate excise tax” (2027 thresholds, rates, who pays, date of sale, fees) and Local Real Estate Excise Tax Rates effective May 1, 2026; RCW 82.45.060; Washington State Department of Revenue, “Capital gains tax”; IRS Topic No. 701 (reviewed October 12, 2026); Redfin housing market data for Bellevue, Sammamish, Woodinville, Kirkland and Redmond (three months ending September 2026); King County Department of Assessments sales data (deeds October 1, 2025 to September 30, 2026), Butler & Butler analysis; Butler & Butler sales and listings from Compass and NWMLS, dates as shown. Example calculations by Butler & Butler. Data deemed reliable but not guaranteed.