Starting January 1, 2020, many home sellers in Thurston County, WA will see relief in their Real Estate Excise Tax (REET) that they pay to the state of Washington when they sell their home.
In the past, most areas in Thurston County were taxed 1.78% (1.28% state tax rate + 0.50% local rate) of the sales price and were paid by the seller at the time of their home sale.
Now in 2020, the tax rate changed to a graduated structure, lowering the cost for most home sellers in Thurston County.
For a sales price of $500,000, the new combined tax rate is 1.60% of the sales price (1.10% state tax rate + 0.50% local rate) versus the previous rate of 1.78 percent. This is a savings of $900 to the seller. See the chart below for the graduated tax rates.
With the median sales price in Thurston County at approximately $340,000, many sellers this year will enjoy this reduced tax rate.
Between extremely low inventory, high buyer demand and now a break for most sellers on their sales tax obligation, this year will be a win for most homeowners who are considering selling. For the specific details on your home sale, contact me today.
Notes:
- This legislation does not affect rates for timberland or agricultural land which will remain subject to REET at 1.28% tax rate.
- For the town of Rainier in Thurston County, the local rate is 0.25 percent.
- These thresholds may be adjusted in 2022 (and every four years following). Please visit the Department of Revenue for details (www.dor.wa.gov).
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