What is the Real Estate Excise Tax (REET) in Washington?
The Real Estate Excise Tax, or REET, is a state and local tax owed by the seller on the sale price of real property in Washington. It’s calculated on a graduated scale based on your home’s sale price and is typically paid out of your proceeds at closing, not out of pocket separately.
If you’re selling a home in Pierce County, REET is one of the bigger line items on your closing statement — and one of the most misunderstood, since it’s based on price, not profit.
How REET is calculated in Washington
Washington uses a graduated REET rate that increases with sale price. As of the current state tiers, most Pierce County home sales fall into the lower one or two brackets, but higher-value sales can cross into a higher rate on the portion above each threshold. Local jurisdictions can also add a small additional REET on top of the state rate.
- It’s based on sale price, not net gain — REET applies regardless of whether you made money on the sale.
- It’s graduated — different portions of your sale price can be taxed at different rates.
- It’s the seller’s responsibility — buyers don’t typically pay REET in a standard transaction.
How REET affects your net proceeds
When you’re estimating what you’ll walk away with after selling, REET sits alongside agent commissions, title and escrow fees, and any negotiated buyer concessions. On a $600,000 to $800,000 Pierce County home — a common range for move-up sellers — REET alone can run several thousand dollars, so it’s worth building into your math early rather than discovering it on your closing statement.
Because the exact rate depends on current state and local tiers at the time of your sale, the most reliable number is the one calculated against your actual anticipated sale price, not a rough estimate from a prior year.
Frequently Asked Questions
Who pays REET in a Washington home sale — buyer or seller?
The seller pays REET in a standard Washington transaction. It’s calculated on the sale price and paid out of your proceeds at closing.
Can REET be negotiated between buyer and seller?
Responsibility for REET can technically be negotiated as part of a purchase agreement, though it’s uncommon for buyers to absorb it. Your agent can walk you through how this fits into your specific offer or listing strategy.
Your specific REET number depends on your home’s sale price and where it falls in the current tiers — that’s exactly the kind of math The Barnard Group walks sellers through before listing. If you’re weighing a move, The Barnard Group’s complimentary Home Selling Strategy Session covers your home’s current value, your net proceeds, and a plan built around your timeline. You can book yours at https://www.barnardgroupre.com/sellit.
About Josh Barnard
Josh Barnard is the founder of The Barnard Group and has spent over 20 years helping families navigate some of life’s biggest moments through real estate. Known for his “Work Hard. Be Kind.” approach, Josh combines expert market knowledge, thoughtful marketing, and genuine care to help homeowners make confident decisions about their next chapter.
