If you’re planning to sell a home in Lake Stevens or Snohomish County in 2027, there’s a small change worth knowing about when estimating your closing costs.
Starting January 1, 2027, Washington will increase the price thresholds used to calculate the state portion of its real estate excise tax, commonly called REET. The tax rates stay the same, but more of the selling price will fall into the lower brackets.
What is real estate excise tax?
REET is a tax on the sale of real property that is typically paid by the seller. It is based on the selling price, rather than the seller’s profit. Local real estate excise taxes may also apply.
What changes in 2027?
The new state tax brackets are:
- 1.10% on the first $551,000.
- 1.28% on the portion above $551,000 through $1,551,000.
- 2.75% on the portion above $1,551,000 through $3,051,000.
- 3.00% on the portion above $3,051,000.
These thresholds apply to sales beginning January 1, 2027. Certain agricultural and timberland sales have separate tax treatment.
How do the brackets work?
Each rate applies only to the portion of the selling price within that bracket. Crossing a threshold does not cause the entire sale price to be taxed at the higher rate.
Local REET is calculated separately based on the property’s location.
An example: Selling a home for $750,000
Under the 2026 brackets, the state excise tax would total $8,655.
Under the 2027 brackets, the calculation would be:
- First $551,000 × 1.10% = $6,061.
- Remaining $199,000 × 1.28% = $2,547.20.
- Total state REET = $8,608.20.
That’s $46.80 less in state excise tax on the same $750,000 sale. This example excludes local REET and other closing costs.
Should you wait until 2027 to sell?
For a home in this price range, the tax savings alone are unlikely to justify changing your plans.
Your expected sale price, mortgage payments, maintenance expenses, moving schedule, and competition from other listings can have a much larger effect on your final proceeds.
The better approach is to look at your full estimated selling costs alongside your goals and timing.
What should Lake Stevens and Snohomish County sellers do?
Before listing, request an updated seller net estimate based on your anticipated sale price and sale date. It should account for your mortgage payoff, applicable state and local excise taxes, and other estimated selling expenses.
That gives you a clearer picture of what you may walk away with and helps you plan your next move.
Thinking about selling in Lake Stevens or Snohomish County in 2027? Reach out to Taylor Stefani to discuss your home’s value, estimated selling costs, and a timeline that fits your plans.
