What the 2027 Washington Real Estate Excise Tax Shifts Mean for You
When buying or selling real estate or structuring corporate asset transactions in Washington, tax considerations are rarely far from mind. One of the most significant state level costs in any transfer is the Real Estate Excise Tax (“REET”).
Under RCW 82.45.060, Washington uses a graduated rate structure for state REET. Rather than a flat percentage across all transaction values, Washington applies different tax rates to specific tiers of the property’s selling price.
By statute, these price thresholds are adjusted every four years based on changes in the Consumer Price Index. As we look ahead, the next statutory four-year adjustment cycle takes effect on January 1, 2027.
If you are planning real property transfers, corporate asset purchases, or controlling interest transfers (which occur when 50% or more of an interest in an entity, such as an LLC, corporation, or partnership, that owns Washington real property is sold or transferred within a 36-month window), here is how the threshold tiers are changing in the coming years.
(Note: The below figures represent state REET only. Local city or county REET rates, typically an additional 0.25% to 0.50%, continue to apply on top of state rates.)
Current REET Rate Tiers (Through December 31, 2026)
Through the end of 2026, state REET rates apply based on the following selling price thresholds:
| Selling Price Portion | State REET Rate |
| $525,000 or less | 1.10% |
| $525,000.01 to $1,525,000 | 1.28% |
| $1,525,000.01 to $3,025,000 | 2.75% |
| $3,025,000.01 or more | 3.00% |
New REET Rate Tiers (Beginning January 1, 2027)
Starting January 1, 2027, the statutory threshold amounts will shift upward across all brackets:
| Selling Price Portion | State REET Rate |
| $551,000 or less | 1.10% |
| $551,000.01 to $1,551,000 | 1.28% |
| $1,551,000.01 to $3,051,000 | 2.75% |
| $3,051,000.01 or more | 3.00% |
What This Means for Deal Structure
The upward shift in the dollar thresholds means that a slightly larger portion of a transaction’s total value will fall into the lower tax brackets starting in 2027. For parties negotiating transactions near tier boundaries, understanding these effective dates can help optimize closing timelines.
For example, a commercial or residential property transaction priced at $1,550,000 closing in 2026 sees a portion of the purchase price taxed at the 2.75% bracket. Closing that same $1,550,000 transaction in 2027 keeps the entire value above $551,000 inside the lower 1.28% tier, yielding modest tax savings.
As with any real estate transaction or corporate restructuring, REET exposure depends on nuances like property classification, statutory exemptions, and local surtaxes. If you have questions about structuring an upcoming deal, the Business and Real Estate Lawyers at Beresford Booth have extensive experience. Contact us at info@beresfordlaw.com or call (425) 776-4100 to see how we can help.