Selling in Vancouver, WA? Here's What the Real Estate Excise Tax Will Cost You
Selling a home comes with a lot of exciting numbers: your list price, the offers, the moment you realize you don’t have to keep the house showing-ready anymore.
Then there’s the real estate excise tax, or REET. It’s less exciting, but it’s one of the bigger costs on a Washington seller’s settlement statement, so it’s worth knowing before you list instead of discovering it at the closing table.
What is REET?
When a home sells in Washington, the state charges an excise tax on the sale price. According to the Department of Revenue, the seller usually pays it. If the seller doesn’t, the buyer becomes responsible.
It’s collected through escrow at closing, so it comes out of the seller’s proceeds along with the other costs of the sale. No separate check, no envelope to forget on the counter.
How much is it in 2026?
Washington’s state rate is graduated, like income tax brackets. For sales closing January 1 through December 31, 2026:
Portion of the sale price | State rate |
$0 to $525,000 | 1.1% |
$525,000.01 to $1,525,000 | 1.28% |
$1,525,000.01 to $3,025,000 | 2.75% |
Above $3,025,000 | 3% |
On top of that, there’s a local rate charged on the full price. In Vancouver, Camas, Washougal, Battle Ground, Ridgefield, La Center and unincorporated Clark County, it’s 0.5%. In Yacolt, it’s 0.25%.
Wait—does a higher price push my whole sale into a higher rate?
No. This is the part that saves people a minor panic attack.
Each rate applies only to the slice of the price that falls inside that tier. Selling for $600,000 doesn’t mean the whole $600,000 gets taxed at 1.28%. Only the part above $525,000 does.
What does that look like on a real number?
Here’s a hypothetical $600,000 sale in Vancouver closing in 2026:
Piece | Math |
State, first tier | $525,000 × 1.1% = $5,775 |
State, second tier | $75,000 × 1.28% = $960 |
Local | $600,000 × 0.5% = $3,000 |
Total REET | $9,735 |
There are also small state processing fees, which your escrow officer will include.
Does anything change on January 1, 2027?
Yes. State law adjusts the tier thresholds every four years. For sales closing on or after January 1, 2027, the Department of Revenue lists new thresholds of $551,000, $1,551,000 and $3,051,000, with the same rates.
That same $600,000 sale would come to about $9,688.20. If your closing date could land on either side of New Year’s Day, it’s worth running both numbers. It may be the only time a holiday has a direct line item.
What other selling costs should I plan for?
REET is one line on the settlement statement. The rest depends on your sale and your purchase agreement, including your loan payoff, brokerage compensation, title and escrow charges, and any repair credits you agree to.
Before you list, ask for a net sheet that estimates each of these for your price. It’s a lot easier to plan your next move when you know what you’re walking away with.
Quick questions
Is REET charged on every transfer? No. Some transfers, such as certain gifts and some transfers in a divorce, can be exempt. The Department of Revenue’s REET pages list the exemptions.
Do I pay REET when I buy? Usually not. The seller normally pays it, though the buyer becomes responsible if the seller doesn’t.
If you’re thinking about selling in Clark County, I’m happy to walk through your estimated numbers with you before you list, so there are no surprises when the settlement statement shows up.
Talk with David Brownlee about selling your home in Vancouver, Washington: (360) 910-9876
This is general information, not tax or legal advice. Confirm your figures with your escrow officer or a tax professional.
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