Washington REET 2026: What Cash Sellers Actually Pay (Guide)
Washington REET 2026 for cash sellers — graduated rate brackets, county surcharges, exemptions, and real net math for Seattle, Tacoma, Olympia.
If you sell a Washington home in 2026, you will pay a Real Estate Excise Tax (REET) of roughly 1.35% to 1.78% of the sale price before any other closing costs — higher on homes above the $525,000 first bracket and meaningfully higher on the portion of any sale above $1.525 million. For a Seattle-area seller at the King County median of about $830,000, that works out to somewhere between $11,000 and $15,000 going to the state and county before you see a single dollar of net proceeds. Cash sellers pay the same REET as traditional listing sellers — the tax is calculated on the gross price, not on how the buyer funds the deal.
This guide walks through how Washington's graduated REET actually works in 2026, what the state and local brackets look like after the most recent Department of Revenue threshold review, what a Seattle, Tacoma, or Olympia seller really nets after tax, which exemptions apply to inherited, divorce, and foreclosure-driven sales, and how a direct cash offer changes (or does not change) the math.
> Important: REET is a real statutory tax, not a closing fee. This guide explains the 2026 framework in plain language but is not legal or tax advice. Confirm current rate schedules at dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax and consult a Washington-licensed real estate attorney or CPA before relying on any number in your closing statement.
The Short Version — 2026 Washington REET for Cash Sellers
If you only read one section of this article, read this one. Here is the compressed version every Washington cash seller should know going into 2026:
The rest of this guide unpacks each of those points with real numbers for Seattle, Tacoma, and Olympia sellers, plus the workflow a cash buyer like Northwest Cash Offers walks a seller through at closing.
What REET Is and Where It Comes From
Washington's Real Estate Excise Tax has been on the books since 1951 and is codified in Chapter 82.45 RCW. It is imposed on the "sale of real property" located in Washington, which the statute defines broadly — traditional deeded sales, contracts for deed, long-term leases with purchase options, and most transfers of controlling interests in entities that own real estate all trigger REET.
For a normal owner-occupied home sale, the mechanics are simple. The seller signs a Real Estate Excise Tax Affidavit at closing. Escrow calculates the tax using the selling price on the affidavit. The full REET amount (state plus any local) is wired directly from escrow to the county treasurer alongside the mortgage payoff and any other liens. The county treasurer records the deed only after REET has been paid and the affidavit is on file.
In plain English, you do not "send in" your REET payment. Escrow handles it as a line item on the settlement statement, and you never touch the money — it comes out of your proceeds before you see them.
Why REET Matters More for Sellers Than Most Other Closing Costs
Unlike title insurance (quotable up front), escrow fees (negotiable), and commissions (waivable in a direct sale), REET is fixed by statute and cannot be negotiated with the buyer, the county, or the state. The only ways to reduce your REET bill are: sell for a lower price (not usually the goal), qualify for a statutory exemption (which only helps in specific situations), or sell a property classified as agricultural/timberland (which has a flat 1.28% state rate regardless of price).
For Washington homeowners deciding between a traditional listing and a cash sale, REET is often the single largest line item on the settlement statement after the mortgage payoff. A move-up buyer selling a $900,000 Bellevue home, for instance, pays nearly $10,600 in state REET alone — more than the title insurance and escrow fees combined.
Our breakdown of how cash home offers actually work in Washington covers the other line items a seller should expect at closing and where cash offers genuinely reduce cost versus where they simply shift it.
The 2026 State REET Graduated Rate Schedule
Washington transitioned from a flat 1.28% state REET to a four-bracket graduated structure on January 1, 2020, under ESHB 5998. The Department of Revenue is required to review the dollar thresholds every four years and may increase them by the lesser of 5% or the growth in the Consumer Price Index for Shelter, per MRSC's 2025 Legislative Updates to the Real Estate Excise Tax Program.
For 2026, the Department of Revenue publishes current rate schedules at dor.wa.gov. Confirm the exact bracket amounts before closing, since DOR can adjust them mid-year through a new rate schedule. The structure and rates in effect for most of 2025 and carrying into 2026 are:
| State REET Bracket | Portion of Selling Price | Rate | |---|---|---| | Bracket 1 | Up to $525,000 | 1.10% | | Bracket 2 | $525,000.01 to $1,525,000 | 1.28% | | Bracket 3 | $1,525,000.01 to $3,025,000 | 2.75% | | Bracket 4 | Above $3,025,000 | 3.00% |
This is a true marginal structure, not a cliff. On a $600,000 sale, the first $525,000 is taxed at 1.10% and only the last $75,000 is taxed at 1.28% — you do not jump to the higher rate on the entire sale just because you crossed the threshold. The math matters:
The effective rate climbs noticeably as sale price crosses the brackets. On a $500,000 sale, the effective state REET rate is 1.10%. On a $2 million sale, it jumps to 1.58%. On a $3.5 million sale, it hits 2.12%.
Agricultural and Timberland Exception
If the property is classified as agricultural land or timberland under RCW 84.34, the state REET is a flat 1.28% regardless of sale price — not the graduated rate. This is a narrow exception that applies only to property with current agricultural or timber designation. A ten-acre rural homesite without a working farm classification does not qualify, even if the parcel could theoretically be farmed.
Local REET — The County and City Layer Most Sellers Underestimate
On top of the state REET, every Washington county imposes a local REET under RCW 82.46. Most jurisdictions impose both REET 1 (0.25% under RCW 82.46.010) and REET 2 (0.25% under RCW 82.46.035) for a combined 0.50% local add-on. A handful of smaller cities and unincorporated county areas only impose REET 1 for a 0.25% add-on. Virtually every Pacific Northwest market a typical seller cares about — Seattle, Tacoma, Olympia, Bellingham, Bellevue, Kirkland, Redmond, Spokane — charges the full 0.50%.
Here is the all-in combined rate (state + local) a seller pays by sale price in a 0.50% local jurisdiction like most of King, Pierce, Thurston, and Snohomish counties:
| Sale Price | State REET | Local REET (0.50%) | Combined Rate (effective) | |---|---|---|---| | $500,000 | $5,500 | $2,500 | 1.60% | | $700,000 | $8,015 | $3,500 | 1.64% | | $830,000 (King median) | $9,679 | $4,150 | 1.67% | | $1,000,000 | $11,855 | $5,000 | 1.69% | | $1,500,000 | $18,255 | $7,500 | 1.72% | | $2,000,000 | $31,638 | $10,000 | 2.08% | | $3,025,000 | $60,138 | $15,125 | 2.49% |
For a seller at the King County median sale price of roughly $830,000, all-in REET is about $13,829. That is meaningfully more than most sellers budget for. In Tacoma and Olympia, where median sale prices run closer to $550,000 to $600,000, all-in REET lands between $8,800 and $9,700.
Looking Up Your Specific Jurisdiction's Local Rate
Every county treasurer maintains a current local REET rate table. The fastest way to confirm your rate is to search "[your county] REET rate" — the county websites all publish it. The Municipal Research and Services Center's REET overview also maintains a summary of which jurisdictions impose which portions of the local REET.
For our Seattle and Tacoma cash sellers, this almost always rounds to 0.50%. The exception would be a sale in a rural unincorporated area of a smaller county — worth confirming with your closing agent before you price a listing or evaluate a cash offer.
What This Actually Costs — Real Scenarios for Washington Cash Sellers
Abstract rate tables do not help anyone make a decision. Here are four realistic scenarios Northwest Cash Offers sees every month, with the full REET math worked out.
Scenario 1: Seattle Teardown in Rainier Valley — $475,000
A seller inherits a 1950s rambler in Rainier Valley that needs a full gut or a teardown. Traditional listing is complicated — the house would not pass a standard inspection, and cash investor buyers are the realistic audience anyway. Cash offer price: $475,000.
The seller nets $467,400 before other closing costs (title, escrow, prorations).
Scenario 2: Tacoma Fixer — $410,000
A Tacoma seller needs to move for a job in Portland in six weeks. The house needs roughly $40,000 in repairs the seller cannot afford up front. Cash offer: $410,000.
Compared to a traditional listing at $470,000 (what a repaired comp would sell for) with 5.5% commissions ($25,850), $15,000 in pre-sale repairs, three months of mortgage carry ($7,500), and higher REET on the higher price ($7,520 all-in), the listing nets about $414,130 after costs. The $410,000 cash offer nets $403,440 after REET — a $10,690 gap that most sellers will trade for a seven-day close in this scenario. See our full Tacoma cash offer timeline guide for the local comp math.
Scenario 3: Olympia Probate Sale — $540,000
The personal representative of an estate sells an Olympia home to close out probate. The property qualifies for a REET exemption if the transfer is directly to an heir (see exemptions section below), but in this case the PR sells to an arm's-length cash buyer to convert to cash for distribution. No exemption applies to the arm's-length sale.
The estate nets $531,333 before other closing costs. Because probate sales have their own timeline considerations, our Washington probate sale guide covers when a cash sale during the 4-month creditor claim period makes sense.
Scenario 4: Bellevue Move-Up — $1,400,000
A Bellevue seller lists in a traditional market but receives a cash offer from a flipper willing to close in 10 days. Cash offer: $1,400,000.
At this price point, REET is materially higher than the buyer's agent commission would have been (typically 2.5% to 3.0% in this market = $35,000 to $42,000), but still represents the single largest dollar cost on the seller's statement after any mortgage payoff.
Who Legally Pays REET — and What "No Fees" Really Means in a Cash Offer
Under RCW 82.45.080, REET is imposed on the seller. The buyer is secondarily liable only if the seller fails to pay — which almost never happens because escrow collects REET from the seller's proceeds at closing before the deed is recorded.
In a traditional listing, the seller pays REET out of proceeds. In a cash sale, the seller pays REET out of proceeds. In an iBuyer sale (Opendoor), the seller pays REET out of proceeds. The payer does not change.
What can change is whether the cash offer price has been adjusted to account for REET. Some cash buyers quote a gross price ("we will pay $450,000") and the seller nets gross minus REET minus other closing costs. Others quote a net-to-seller figure ("you will receive $450,000 at closing"), which means the buyer has already baked REET and closing costs into the gross price they are paying. The difference on a $475,000 Seattle cash sale is roughly $7,600 in REET plus another $1,500 to $2,500 in title, escrow, and prorations — a real number.
Pro Tip: Ask for the Settlement Statement Preview Before Signing
Any legitimate Washington cash buyer will provide a preliminary settlement statement (a "net sheet") before you sign a purchase and sale agreement. That net sheet will show the gross offer price, the REET deduction, other closing costs, mortgage payoff (if any), and the actual wire amount coming to you. If a buyer resists sharing that number, treat it as a red flag. Our cash buyer vs iBuyer vs realtor Washington comparison breaks down which offer types have transparent versus opaque fee structures.
REET Exemptions That Matter for Distressed Sellers
Washington provides more than 30 REET exemptions under WAC 458-61A. Most cover technical transfers (entity consolidations, trustee swaps, certain court-ordered actions) that do not apply to ordinary homeowners. A handful matter directly for the distressed sellers we work with.
Inheritance and Probate — WAC 458-61A-202
A transfer of real property by inheritance or devise — meaning from a deceased owner to an heir, beneficiary, or legatee — is exempt from REET. This covers the initial transfer out of the estate to the heirs, including when the personal representative records a Personal Representative's Deed to distribute property to a beneficiary.
What the exemption does not cover: a subsequent arm's-length sale by the heir or estate to a third party. Once the heir owns the property and sells to a cash buyer (or any other buyer), that sale is a normal taxable REET transaction. See our inherited house guide for the full probate-plus-sale workflow.
Divorce and Court-Ordered Property Settlements — WAC 458-61A-203
A transfer of real property between spouses (or former spouses) made in fulfillment of a court-ordered property settlement is exempt from REET. This is the exemption that covers the common scenario where a divorce decree awards the marital home to one spouse, and the other spouse signs a quitclaim deed to transfer their interest.
Like the inheritance exemption, this only covers the intra-marital transfer — not a subsequent sale to a third party. If the retaining spouse then sells the home to a cash buyer, that is a normal taxable sale. Our divorce home sale guide for Washington walks through both transfers and the tax math.
Deed in Lieu of Foreclosure — WAC 458-61A-208
A transfer of property to a secured lender (or a designee) in lieu of foreclosure is exempt from REET, as is a transfer by the purchaser at a foreclosure sale. This matters for homeowners in pre-foreclosure considering surrendering the home to the lender to avoid a full foreclosure on their credit.
A cash sale during pre-foreclosure to a third-party buyer, however, is not exempt — it is a normal taxable sale. But cash sales during pre-foreclosure often still net the seller more than a deed-in-lieu, because the sale generates proceeds the lender does not receive in full. Our pre-foreclosure cash sale guide walks through the timeline math.
Gifts — WAC 458-61A-201
A true gift of real property with no consideration and no debt assumption is exempt from REET. The catch is "no debt assumption" — if the recipient takes over an existing mortgage, the assumption amount counts as consideration and REET applies on that portion of the value. Pure gifts of unencumbered property are fairly common for elderly homeowners transferring property to adult children; gifts of mortgaged property require careful structuring.
Exemption Mechanics — Code, Affidavit, Documentation
Every REET exemption requires:
1. A completed REET Affidavit (the standard form used in every Washington transfer) with the correct exemption code entered in the exemption box. DOR publishes the code list in ETA 3216.2024. 2. Supporting documentation — a certified copy of the death certificate and will for inheritance, a certified copy of the divorce decree for property settlements, the deed-in-lieu agreement for foreclosure transfers, etc. 3. The exemption must be accepted by the county treasurer. Rejection is uncommon but possible if documentation is insufficient, in which case the tax is collected and the seller can pursue a refund.
Missing an exemption you were entitled to is an expensive mistake. On a $700,000 home, the wrong affidavit code costs you $11,500 in REET you did not have to pay. Work with a Washington-licensed escrow officer or real estate attorney who handles the specific transfer type regularly.
The Closing-Day Workflow — How REET Actually Moves Through Escrow
For a seller who has never been through a Washington real estate closing, the REET step is invisible because it happens inside escrow. Here is what actually occurs on a typical cash sale closing day.
Step 1 — Preliminary Settlement Statement
Two to five days before closing, escrow produces a preliminary settlement statement (often still called an "HUD-1" in conversation even though the form is now the CD or ALTA Settlement Statement). This document shows the gross sale price, the REET calculation broken into state and local portions, the mortgage payoff, title and escrow fees, prorated property taxes, HOA prorations, and the seller's net proceeds.
This is the document where you verify REET was calculated correctly. Spot-check the state bracket math against the table above — escrow's software is usually right, but not always.
Step 2 — REET Affidavit Signing
At the signing appointment (or remote signing, increasingly common in 2026), the seller signs the REET Affidavit. This form requires:
Step 3 — Funds Wire
On the closing day, the buyer wires funds to escrow. Escrow then wires out simultaneously:
1. The REET payment (state + local) to the county treasurer 2. The mortgage payoff to the seller's lender 3. Any other lien payoffs to those lienholders 4. The seller's net proceeds to the seller's wire instructions
The REET payment and the deed recording are linked — the county treasurer will not record the deed until the treasurer's office receives both the affidavit and the tax payment.
Step 4 — Recording and Tax Receipt
The county treasurer stamps the REET Affidavit as "received," assigns a REET number, and transmits the state portion to DOR. The auditor records the deed. The seller receives a copy of the recorded deed and the REET receipt — usually digitally within 24 to 48 hours, with paper copies to follow by mail.
From the seller's perspective, REET is just a line on a statement and a number they never touch. The entire workflow is escrow's job.
How a Cash Offer Changes the REET Math (and How It Does Not)
Here is the honest answer most cash-buyer landing pages will not give you: a cash offer does not reduce your REET. The statutory tax is the same regardless of buyer type. What a cash offer can reduce is the other closing costs that often get bundled with REET in a seller's mental math:
REET does not change between cash and traditional:
Other closing costs that can change with a direct cash offer:
On a Seattle-area sale, those non-REET savings often total $40,000 to $70,000 compared to a traditional listing. That is where the cash offer value lives. REET itself is a wash.
The practical implication: when evaluating a cash offer, compare gross offer minus REET minus other closing costs against a realistic traditional listing net (list price minus commissions minus repairs minus credits minus REET minus carry). REET is a constant on both sides of the equation. The variables are everything else.
Common REET Questions We Hear from Sellers
A handful of specific REET questions come up repeatedly at Northwest Cash Offers:
Budgeting for REET Before You List (or Accept a Cash Offer)
The single biggest mistake Washington sellers make with REET is not building it into their early financial planning. Most sellers assume commissions are the big closing cost — but for homes in the $500,000 to $1,500,000 range in a 0.50% local REET jurisdiction, REET is the second-largest statutory cost after commissions in a traditional sale, and the largest cost after the mortgage payoff in a no-commission cash sale.
Before you list or accept a cash offer, pull out a calculator (or use the table above) and compute:
1. Expected gross sale price (realistic, not aspirational) 2. State REET using the bracket math 3. Local REET at 0.25% or 0.50% 4. Combined REET total 5. Combined REET as a percentage of your expected equity after mortgage payoff
That last percentage is the one that matters. On a $700,000 sale with a $400,000 mortgage, your equity is $300,000 and your combined REET is roughly $11,515 — about 3.8% of your equity. That is real money and often larger than people expect on their first calculation.
Our Seattle cash offer guide and Olympia cash offer guide both include local scenario math that puts REET in context with other closing costs.
When to Get Professional Help with REET
For a straightforward arm's-length sale of an owner-occupied Washington home, escrow handles REET start to finish. You might need professional help when claiming an exemption, selling near a bracket threshold, transferring to an LLC or trust before sale, selling mixed agricultural/residential parcels, or handling an inheritance with multiple heirs and a planned sale. For the distressed-sale categories — foreclosure, divorce, code violations, hoarder properties — we walk sellers through the specific REET implications during the initial cash offer conversation so the settlement statement has no surprises.
The Bottom Line for 2026 Washington Cash Sellers
Washington's REET is not a small line item. On a Seattle-area sale in 2026, the combined state and local REET costs the average seller roughly 1.60% to 1.72% of the gross sale price — more on higher-priced homes. A cash offer does not change the REET you owe, but a well-structured cash offer does eliminate commissions, repairs, carrying costs, and the risk of deal fall-through that often outweigh the REET on the settlement statement.
Before you commit to a listing agent contract or a cash offer, do three things:
1. Run the REET math for your expected sale price using the bracket table above. 2. Confirm your local REET rate with your county treasurer. 3. Check whether any exemption applies to your specific situation (inheritance, divorce, foreclosure, gift).
If you want the REET numbers pre-worked into a transparent cash offer on your Washington home, request a free cash offer from Northwest Cash Offers — we deliver a preliminary net sheet before you sign anything, so the REET line item is never a surprise on closing day. Our service area covers Seattle, Tacoma, Olympia, Bellingham, and most of the Puget Sound region, and we close in as few as 7 to 14 days with no commissions, no repairs, and no financing contingencies.
Selling a home in Washington is never just "sale price minus mortgage equals cash in hand." The 2026 REET brackets, local surcharges, and exemption rules all live between those two numbers. The sooner you get them on paper, the cleaner every subsequent decision becomes.