When a Skagit County home sells, the largest single line item a seller sees on the settlement statement that is not a commission or a mortgage payoff is often the real estate excise tax, usually shortened to REET. Washington does not tax the gain on a sale. It taxes the sale price itself, in tiers, and then adds a local percentage on top. The math is straightforward once you know the brackets, and it is worth running before you list so the number at closing is not a surprise.
Who pays and what counts as the price
The Washington Department of Revenue states that the seller usually pays REET, but if the seller does not, the buyer becomes responsible. In practice the tax is collected at closing by the escrow or title company and remitted to the county treasurer along with an affidavit.
The taxable “selling price” is broader than the cash a buyer brings. According to the Department of Revenue, it includes all consideration paid, such as cash, assumed debt, and existing liens. It is the price on the sale, not your profit, so a seller who bought years ago and has a large gain is taxed the same way as one who barely broke even.
The state graduated tiers for 2026
For sales through December 31, 2026, the Department of Revenue lists these state rates, applied to slices of the price:
- 1.10% on the portion up to $525,000
- 1.28% on the portion from $525,000.01 to $1,525,000
- 2.75% on the portion from $1,525,000.01 to $3,025,000
- 3.00% on the portion above $3,025,000
The rates apply to each slice, not to the whole price. The department also notes that the thresholds are scheduled to adjust on January 1, 2027, to $551,000, $1,551,000, and $3,051,000, with the same rates. A seller closing near the end of the year should confirm which schedule applies to the closing date.
The local add-on
Cities and counties can add their own REET on top of the state portion. The Department of Revenue publishes a local rate table by jurisdiction. In its April 2025 table, Mount Vernon, Burlington, and unincorporated Skagit County are each listed at 0.50%. Rates can change, and other Skagit cities have their own entries, so check the department’s current table or ask the county treasurer for the rate that applies to the property’s location.
Worked examples
These examples use the 2026 state tiers and a 0.50% local rate. They are illustrations, not quotes.
A $450,000 sale
The entire price falls in the first tier: $450,000 x 1.10% = $4,950. Local REET at 0.50% is $2,250. Total: $7,200.
A $600,000 sale
The first $525,000 is taxed at 1.10%, which is $5,775. The remaining $75,000 is taxed at 1.28%, which is $960. The state portion is $6,735. Local REET is 0.50% of $600,000, or $3,000. Total: $9,735.
A $1,200,000 sale
The first $525,000 yields $5,775. The next $675,000 at 1.28% yields $8,640. State portion: $14,415. Local REET is $6,000. Total: $20,415.
Notice how the effective rate creeps upward as the price climbs. On the $450,000 sale it is 1.6%, on the $600,000 sale about 1.62%, and on the $1.2 million sale about 1.70%.
Farmland and timberland are different
The Department of Revenue says sales of agricultural land and timberland are not subject to the graduated scale. They carry a flat state rate of 1.28% regardless of price, plus the local add-on. That matters in Skagit County, where farm parcels change hands regularly. A $1,000,000 farm parcel at the flat rate would owe $12,800 in state REET rather than the graduated amount, before the local portion. The classification rules have conditions, so a seller of acreage should ask the county treasurer or the Department of Revenue whether a particular sale qualifies.
Exemptions and other wrinkles
Washington provides exemptions for certain transfers, such as some gifts, inheritances, and transfers between spouses, that are not typical arm’s-length sales. Those depend on specific rules in the Washington Administrative Code and on the paperwork filed. Some transfers also involve the state’s separate rules for controlling-interest sales of entities that own real property. If the sale is anything other than an ordinary home sale, get advice before closing.
Why the effective rate matters when pricing
Because REET is charged on the sale price, it moves with any price change you negotiate. A $20,000 price reduction on a $600,000 home lowers the state portion by about $256 (at the 1.28% tier) and the local portion by $100, so the tax falls by roughly $356. That is a small offset against the concession itself, but it belongs in your net-proceeds worksheet. Sellers who compare offers at different prices should run the tax on each scenario, and your escrow officer can confirm how any specific concession is treated.
Practical steps for sellers
- Ask your escrow or title officer for a REET estimate early, using the expected sale price and the property’s local rate.
- Compare that estimate with your net proceeds worksheet so you see the tax next to commission, payoff, and other closing costs.
- Confirm the local rate for the property’s exact jurisdiction on the Department of Revenue’s table.
- If the property is farmland, timber, or a non-standard transfer, ask the county treasurer or a tax professional whether the flat rate or an exemption applies.
- If a sale closes near January 1, 2027, ask which threshold schedule applies.
REET is one of the few closing costs that can be estimated to the dollar in advance. A short conversation with the closing agent before listing usually turns it from a surprise into a line in the budget.
This article is general information, not tax or legal advice. Confirm rates and rules with the Washington Department of Revenue, the Skagit County Treasurer, or a qualified professional.