Selling your Washougal home and wondering how Washington’s real estate excise tax will affect your bottom line? You are not alone. REET shows up as a line item on your closing statement and it reduces your net proceeds, so it pays to understand it early. In this guide, you will learn what REET is, how the tiered rates work, when it is paid, and practical steps to plan ahead with your Clark County closing team. Let’s dive in.
REET basics for Washington sellers
Real Estate Excise Tax, or REET, is a tax on the sale of real property in Washington State. Under state law, the seller is typically responsible for paying it unless the contract says otherwise. The Washington Department of Revenue administers REET and the Revised Code of Washington sets the rules and rates.
For most residential resales in Washougal, your title or escrow company will collect REET from your proceeds at closing and file the return on your behalf. Even when escrow handles it, the statutory obligation remains with the seller unless you and the buyer have agreed differently in writing.
How Washington’s tiered rates work
Washington uses a tiered rate structure. Different portions of the sale price fall into brackets that each have their own rate. Only the amount within a given bracket is taxed at that bracket’s rate.
- The first portion of the price is taxed at the lowest rate.
- The next portion is taxed at a higher rate.
- Amounts above the top threshold are taxed at the highest rate.
This means your effective tax rate climbs as your price moves into higher brackets, but the higher rate does not apply to the entire price. Tiering is most noticeable on higher-value Washougal homes. Always confirm the current brackets and rates before you sign or close.
When and how REET is paid
At resale, Clark County title or escrow typically prepares the REET affidavit, collects the tax from the seller’s proceeds, and remits payment to the state within the required timeframe. Ask your escrow officer for a copy of the filed return and the receipt for your records.
If REET is not paid or is reported incorrectly, penalties and interest can apply under state rules. Using a reputable local escrow team and reviewing your estimated settlement statement helps prevent surprises.
Exemptions and special cases
Some transfers may be exempt or treated differently. Common examples include:
- Certain transfers between spouses or as part of a divorce or property settlement.
- Certain transfers between legal entities where ownership has not effectively changed for tax purposes.
- Some foreclosure-related transfers or deeds in lieu, subject to specific rules.
- Transfers to certain government entities or for public purposes.
Eligibility depends on the details of your transaction. Do not assume an exemption applies. Coordinate early with your title company and, for complex situations, a tax professional.
How REET affects your net proceeds
Your cash at closing depends on the sale price and all deductions. A simple way to think about it is:
- Sale price
- Minus real estate commission(s)
- Minus mortgage payoff(s) and liens
- Minus REET
- Minus title, escrow, and recording fees
- Minus prorations for property taxes, HOA dues, and utilities
- Minus repairs, concessions, or other agreed credits
Illustrative examples only
The examples below are for illustration. Always use current Washington Department of Revenue rates for an exact estimate.
Example A, moderate price (illustrative):
- Sale price: $450,000
- Assumed flat REET rate for illustration: 1.28%
- Estimated REET: $450,000 × 0.0128 = $5,760
- This would be one of several deductions from your proceeds.
Example B, higher price with tiers (illustrative):
- Sale price: $1,200,000
- Hypothetical tiering for illustration only:
- First $500,000 at 0.5% = $2,500
- Next $500,000 at 1.28% = $6,400
- Remaining $200,000 at 2.0% = $4,000
- Total REET (illustrative): $12,900
In both cases, title or escrow will run the official calculation using the current tiered rates and show REET as a line item on your settlement statement.
Washougal and Clark County notes
- Local practice: Clark County title and escrow teams typically collect and remit REET at closing, then provide the filing receipt. Confirm this step with your escrow officer.
- Property tax proration: Property taxes are prorated at closing. REET is separate from property taxes, but both affect your net.
- Local surcharges: Rules can change. Ask your escrow team to confirm whether any Clark County or City of Washougal transfer-related assessments apply to your sale.
Smart steps to take as a seller
Use these simple checkpoints to stay ahead of REET and protect your proceeds:
Before you list
- Ask for a preliminary net estimate from your agent and a local title/escrow company using your target list price.
- Share any special circumstances that could affect REET, such as a potential exemption or a transfer involving an entity or trust.
During negotiations
- Clarify in the purchase and sale agreement who pays REET if you intend to allocate it differently, keeping in mind statutory obligations.
- Review an updated net estimate using the agreed price before you sign.
Before closing
- Confirm that escrow will file and pay REET, and request a copy of the REET receipt for your records.
- If you believe an exemption applies, provide documentation early so the title team can verify it without delaying closing.
For complex or high-value sales
- Consult a tax professional or real estate attorney. Early planning can help you evaluate exemptions and confirm the most accurate net outcome.
Short note on guidance
This article summarizes common practices; sellers must consult a tax professional or title company for transaction-specific advice.
Ready to talk about your sale?
If you want a calm, clear plan for selling in Washougal, you can expect step-by-step guidance and careful net estimates. Connect with Anjali Remme to discuss your timeline, pricing strategy, and what REET means for your proceeds.
FAQs
Who pays Washington’s REET in a Washougal home sale?
- The seller is typically responsible under state law, although the parties can agree otherwise in the purchase and sale agreement.
How are Washington’s tiered REET rates applied to my price?
- Only the portion of your sale price within each bracket is taxed at that bracket’s rate, not the entire price at the top rate.
When is REET collected and filed in Clark County closings?
- Title or escrow usually collects REET from the seller’s proceeds at closing and files the return and payment within the required timeframe.
Can family or divorce-related transfers be exempt from REET?
- Some spouse or divorce-related transfers may qualify, but eligibility is fact-specific and requires proper documentation and review.
Does REET apply to vacant land or manufactured homes in Washington?
- Many real property transfers are subject to REET, including land; rules for manufactured or mobile homes can vary and should be confirmed with title or the DOR.
Will REET reduce the check I receive after closing?
- Yes. If collected at closing, REET appears as a line item on your settlement statement and reduces your net proceeds.
How can I estimate how much REET I will owe on my Washougal sale?
- Ask your agent and escrow officer for a current net estimate that uses the latest Department of Revenue rates and your expected sale price.
