Rules and Regulations

Washington State Real Estate Excise Tax

On April 27, 2019 the Washington State legislature passed SB 5998 – 2019-20, establishing a graduated real estate excise tax.

New Tax Rates

Effective 1/1/2020, the current 1.28% state real estate excise tax will change to a graduated rate as follows:

  1. For the portion of the selling price less than or equal to $500k, the excise tax will be 1.10%.
  2. For the portion between $500K and $1.5M, the excise tax will be 1.28%.
  3. For the portion between $1.5M and $3.0M, 2.75%,
  4. For the remaining portion above $3M, the excise tax will be 3.00%.

Starting January 1, 2023, and every 4 years thereafter, the selling price thresholds will be adjusted to reflect housing inflation.

This is expected to generate about $598 million over the next four years.

More information here:

https://app.leg.wa.gov/billsummary?BillNumber=5998&Year=2019&Initiative=false

Does this change your buying or selling decisions? Let us know. Post your comments below!

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About Chris Lee

Chris comes from a family of real estate investors, and remembers well his childhood of helping to clean and paint apartments between renters.


Chris now manages a mix of his own property and others for family, consisting of single family homes, multi-family complexes, and the occasional condo unit in and around Seattle. He also has particular insight into the issues around short-term rentals as he has managed those for himself and for other owners on AirBnb, VRBO, and other platforms.


Prior to Landlord Gurus, Chris worked in website development and digital marketing, assisting firms across a wide range of industries. He, along with his wife and two kids, also found themselves living and working overseas for several years.


Upon his return to the US, Chris often turned to Eli for property management advice and help with property maintenance. At this point, the two decided to start Landlord Gurus to help the countless others searching for answers to similar problems.


In his free time, Chris enjoys outdoor sports and activities including baseball, skiing, golf, hiking, and spending time with family and friends.


Education:
- BA, Economics - Whitman College
- MA, Pacific International Affairs - University of California, San Diego
- MPA, Public Accounting - Open University of Hong Kong

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