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:
- For the portion of the selling price less than or equal to $500k, the excise tax will be 1.10%.
- For the portion between $500K and $1.5M, the excise tax will be 1.28%.
- For the portion between $1.5M and $3.0M, 2.75%,
- 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!
Do I have to pay an excise tax for renting my house in WA state?
There’s no excise tax for renting. This is just in regards to selling.