Selling a home? Washington State Excise tax

 

Did you know you have to pay excise tax to Washington State when you sell a home?

The structure is changing: Now it is 1.78% of the sales price - Starting Jan 2020 it will be a tiered rate.

Up to $500,000 sales price 1.6%
from $500,0001 to 1,500,000 will be taxed at 1.78%
between 1,500,001 and $3,000,000 3.25% 
$3,000,001 and above 3.5%

For example, $750,000 sales price
The first $500,000 is taxed at 1.6% ($8,000)
The next $250,000 is taxed at 1.78% ($4,450)
Total tax $12,450 (under the new program)

Existing program is $13,350 (actually higher now!)