In order to make Washington State’s tax structure more progressive, legislators have implemented a new Real Estate Excise Tax (REET), effective January 1st, 2020. REET will replace the current 1.28 percent sales tax applied to all real estate transactions with a variable rate based on a property’s value.
In response, Realogics Sotheby’s International Realty (RSIR) has launched WashingtonREET.com, a calculator created with home sellers in mind which displays estimations of 2019 and 2020 property taxes. This calculator is a quick and easy navigation tool, tremendously helpful for homeowners who are thinking about selling their home in the near future. The tiered REET will impact all property types with the exception of raw, undeveloped/agricultural land (which will remain at the current 1.28 percent rate).
For sellers of homes priced below $500,000, the tax rate will drop to 1.1 percent, a savings for sellers at this price point.
Sellers at the $1.56 million range will fall towards a break-even point.
Sellers of homes priced above $1.56 million will indelibly be subject to larger REET sums.
Visit WashingtonREET.com to understand the implication for your home as you consider your real estate goals for 2019, 2020 and beyond.