The Washington State Legislature passed a bill changing the state’s Real Estate Excise Tax (REET). This will raise taxes on the sales of mansions while reducing taxes on less expensive homes. The new REET will bring in around $150 million per year with the money slated for education funding.
The State REET will be changing from a flat rate to a graduated structure. The state currently taxes most property sales at 1.28 percent of the selling price. The new proposal will:
- Reduce tax to 1.1 percent on sales of property less than $500,000
- Maintain the 1.28 percent tax for properties sold between $500,000 and $1.5 million
- Increase tax to 2.75 percent for properties sold between $1.5 million and $3 million
- Properties sold over $3 million will be taxed 3 percent of the selling price
If signed by the governor, changes would be effective January 1, 2020.