Selling a home in Seattle and hearing about “REET” at closing? You are not alone. The Real Estate Excise Tax can feel like alphabet soup when you are trying to plan your net proceeds. In this guide, you will learn what Washington’s REET is, who pays it, how it is handled in King County, key exemptions, and how to avoid costly mistakes. Let’s dive in.
What REET is
Washington’s Real Estate Excise Tax is a tax on the transfer of real property when you sell. It applies when ownership changes hands and a deed is recorded. REET is a seller-side tax in most standard home sales. The revenue supports state and, in some cases, local programs as set by law.
Who pays REET and when
By statute, the seller is primarily responsible for paying REET. In practice, your escrow or title company collects it from your proceeds at closing. The tax must be paid before the deed is recorded. Counties will not finalize recording without payment or proof it has been paid.
How REET is calculated
REET is based on the sale price, also called the “consideration” amount. Consideration usually means the cash paid plus any other items of value. Washington has state-level REET, and there can be local components that affect the total. Because laws and brackets can change, confirm current rates and how they apply to your sale with the Washington Department of Revenue and King County.
King County recording steps
Most Seattle transactions follow a simple flow through escrow. Your closing team will:
- Estimate your REET based on the agreed sale price and current rules.
- Collect the tax from your proceeds at closing.
- Prepare and file the required REET affidavit for recording.
- Pay the tax so the deed can be recorded the same day.
In King County, the Recorder and Treasurer coordinate collection and recording. Title and escrow companies that work in Seattle handle these filings every day.
Required REET affidavit
A completed REET affidavit is normally required to record your deed in King County. Your closing agent prepares it, but you should review for accuracy. Keep a copy of the affidavit and the treasurer or recorder receipt in your records. These documents are helpful for your files and any future tax questions.
Common exemptions to review
Some transfers are exempt from REET, but exemptions are specific and require documentation. Do not assume an exemption applies without confirming.
Nonconsideration transfers
- Gifts between family members may qualify when no consideration is paid. Expect to provide proof and supporting documents.
Transfers by operation of law
- Transfers due to death, such as inheritance or certain probate distributions, have special rules. Some are exempt while others are not.
Certain related-party or entity transfers
- Some transfers between spouses or related entities may qualify, but the rules are narrow and documentation is key.
Foreclosure or deed-in-lieu
- These transactions have distinct REET treatment and specific paperwork requirements.
If you think an exemption might apply, ask your closing agent to confirm eligibility and required documents with the Department of Revenue and King County.
Special situations to flag
Some sales require extra planning:
- Installment sales or seller financing. REET usually applies to the full price at transfer, even if payments are deferred, but structure matters.
- Exchanges. Most exchanges still trigger Washington REET even if there is a federal deferral. Get tax counsel involved early.
- Trusts and estates. Trust-related transfers can be treated differently. Confirm how your trust is classified and what affidavits are needed.
- Short sales and distressed sales. Documentation of consideration can be complex. Coordinate closely with your closing team.
- Multi-parcel deals. Splits and multiple parcel numbers can change the filing process.
- Nonresident sellers. There may be additional federal withholding or reporting obligations beyond REET.
Planning your net proceeds
REET affects your bottom line, so build it into your pricing and negotiation plan. Ask your title or escrow team for a REET estimate at the listing stage. Some sellers price with the tax in mind. Others negotiate concessions to offset closing costs. Your strategy should match market conditions and your goals.
Avoiding penalties and fixes
Accuracy matters on the REET affidavit and payment. If REET is paid late or the filing is incorrect, penalties and interest can apply. Keep your closing packet and receipts for several years in case of audit or record review by the Washington Department of Revenue. If a correction is needed, work with your closing agent right away.
Seattle-specific notes
The City of Seattle does not typically collect a separate REET beyond what the state and county collect. Still, confirm whether any special local assessments or fees apply to your parcel. Your escrow team can check at the pre-closing stage.
Seller checklist for Seattle
- Early: Request a REET estimate from your title or escrow company based on your likely sale price.
- Pre-closing: Confirm who will collect and remit REET and that the REET affidavit will be prepared for recording in King County.
- Closing: Review the affidavit, confirm the REET amount on your settlement statement, and get the treasurer or recorder receipt.
- Post-closing: Keep the recorded deed, REET affidavit, and receipt. For any post-closing corrections, coordinate with your closing agent and tax or legal advisor.
Where to verify details
Laws and rates can change. Confirm current REET rates, brackets, forms, and exemptions with the Washington Department of Revenue and the King County Recorder and Treasurer. For complex scenarios, consult a Washington-licensed real estate attorney or a tax professional.
Plan your Seattle sale with a pro
You deserve a smooth closing and a clear net number. If you are selling a condo, townhome, or single-family home in Seattle, get tailored guidance on pricing, timing, and closing costs, including REET. Connect with Zac Lee for data-informed strategy and professional marketing. Get your free home valuation.
FAQs
What is Washington REET in a Seattle home sale?
- REET is a tax on the transfer of real property that the seller typically pays at closing before the deed is recorded.
How is REET calculated on a Seattle property?
- The tax is based on the sale price, also called the consideration amount, multiplied by the applicable REET rate set by state law.
Who files the REET affidavit in King County?
- Your title or escrow company usually prepares and files the REET affidavit and remits payment as part of recording.
Are gifts of property in Washington subject to REET?
- Many no-consideration gifts between family members can be exempt, but you must provide proper documentation and confirm eligibility.
When is REET due during closing in King County?
- REET is due at the time of recording; counties will not finalize the deed recording without payment or proof of payment.
What happens if REET is paid late in Washington?
- Late payment or incorrect filings can lead to penalties, interest, and possible audits by the Department of Revenue.
Does Seattle charge a separate city transfer tax?
- Seattle typically does not collect a separate REET, but you should verify whether any special local assessments apply to your property.
