Selling a home in Kirkland? Then you’ll want to understand Washington’s Real Estate Excise Tax, or REET. It shows up on your closing statement and affects your net proceeds. The rules are straightforward once you know what to look for, but there are details that can catch sellers by surprise.
In this guide, you’ll learn what REET is, who pays it, how it’s calculated, common exemptions, and how it works in King County when you record your deed. You’ll also get a practical checklist to make sure nothing gets missed. Let’s dive in.
REET basics for Kirkland sellers
The Real Estate Excise Tax is a state tax on the sale or transfer of real property in Washington. It is generally imposed on the seller and is calculated from the sale price or consideration paid for the property. REET is authorized by state law in RCW 82.45 and administered by the Washington Department of Revenue.
REET is different from other taxes. It is not the same as annual property taxes, and it does not replace federal or state capital gains tax reporting. Paying REET is part of closing on the sale itself.
If you want the official overview and current rules, the Washington Department of Revenue provides detailed guidance on its Real Estate Excise Tax page.
How REET is calculated
In most residential sales, REET is based on the total sale price of the property. Escrow or title will apply the current state schedule to your sale price and compute the exact amount. Because rates and brackets can change, you should verify the current structure on the Department of Revenue’s REET page before you estimate.
By statute, the seller is responsible for REET. In practice, escrow calculates it, shows it as a seller debit on your closing statement, withholds that amount from your proceeds, and remits payment when your deed is recorded.
Payment is due at or before recording. Counties typically require REET to be paid as part of the recording process. Late payment can trigger penalties and interest.
What you’ll see at closing
On your Closing Disclosure or settlement statement, you’ll see a line item labeled Real Estate Excise Tax or REET as a seller expense. The escrow company will file the required REET affidavit, collect the tax from your proceeds, and submit it with your deed for recording.
Ask your escrow officer to walk you through the calculation and to provide a copy of the filed REET affidavit or receipt after recording. Keep this with your closing documents.
A simple, no-numbers example
Imagine your Kirkland home sells for a certain price. Escrow will take that sale price and apply the current REET schedule. The result is shown as a seller debit. Your net proceeds are the gross sale price minus mortgages or liens, closing costs, REET, and any agreed credits. If you need a precise estimate before listing, ask your escrow officer to run a preliminary calculation using today’s published schedule.
Who collects REET in King County
In King County, the Treasurer’s Office collects REET at the time of recording. Your escrow company submits the REET affidavit and payment to the county along with your deed. You can review county collection and filing guidance on the King County Treasurer’s REET page.
Recording requirements are handled through the Recorder’s Office. If you want to understand the mechanics of deed recording, visit the King County Recorder’s Office.
Some Washington jurisdictions have had authority to levy certain local REETs for limited purposes. Before you finalize your numbers, confirm with your escrow officer and check current county or city guidance to see if any local component applies to your sale.
Common exemptions to consider
Some transfers are exempt from REET under specific conditions. Exemptions are detailed in RCW 82.45 and Department of Revenue guidance. Always verify eligibility and provide documentation to escrow early. Common scenarios to review include:
- Transfers between spouses or registered domestic partners in qualifying circumstances.
- Transfers incident to divorce or dissolution when dividing property per court orders.
- Transfers due to death where title passes to heirs or devisees without consideration.
- Transfers to governmental entities or for public use when applicable.
- True gifts where no consideration is paid.
- Certain bankruptcy or foreclosure-related transfers, subject to specific rules.
Important clarifications:
- The federal principal residence exclusion for capital gains is an income tax provision. It does not exempt you from REET.
- A 1031 like-kind exchange can defer income taxes for qualifying investment property, but it does not automatically remove REET. Unless a statutory exemption applies, REET is still due at transfer. Confirm with the Department of Revenue and your tax advisor.
If you plan to claim an exemption, tell escrow early and be ready with the exact statutory citation and required documents. Most exemptions cannot be granted without proper proof.
Special situations and common mistakes
- Assuming REET is optional. It is required by law on taxable transfers. Escrow will typically collect it to avoid recording issues.
- Confusing REET with capital gains. REET is a transfer tax collected at closing. Capital gains are reported on your income tax return.
- Waiting until closing to raise an exemption. If you think you qualify, notify escrow when you open title so you have time to gather the paperwork.
- Overlooking entity or estate transfers. If you are selling from a trust, estate, LLC, or partnership, confirm how REET applies to your structure and what documents the county requires.
For authoritative rules, rely on the Washington Department of Revenue’s REET guidance and the statute in RCW 82.45.
Kirkland seller checklist
Use this quick list to keep your closing smooth and your numbers accurate.
Before listing or early in escrow
- Ask your agent to coordinate with your escrow/title company about calculating and remitting REET.
- Verify the current REET schedule on the Department of Revenue’s site and request a preliminary estimate from escrow.
- If you believe an exemption applies, notify escrow immediately and gather required documents with the statute citation.
- Talk with your CPA or tax advisor about how the sale may affect income taxes, especially for estate, divorce, or investment properties.
During contract and escrow
- Review your preliminary Closing Disclosure for the REET line item and confirm it will be deducted from your proceeds.
- Confirm in writing which party is paying REET. By law the transferor is liable, but contracts can allocate costs differently.
- Ensure any exemption paperwork is complete, signed, and acceptable to escrow before closing.
At closing and after recording
- Request a copy of the filed REET affidavit and the receipt from escrow.
- Keep all REET documentation with your closing file for tax records.
- Ask your tax advisor how to reflect REET and selling costs when you prepare your return.
Timing and penalties
- Expect REET to be paid at or before deed recording. Late payment can result in penalties and interest, so plan your proceeds and wiring timelines accordingly.
Verify current rates and forms
Rates, brackets, and exemptions can change. Before you rely on any estimate, verify the current schedule, forms, and filing instructions using these official resources:
- Washington Department of Revenue: Real Estate Excise Tax
- Washington statute: RCW 82.45
- King County Treasurer: REET collection and filing
- King County Recorder’s Office: Recording requirements
Industry groups like Washington REALTORS also publish practice guides and updates that can help you understand how escrow and local customs handle REET.
How Six Degrees helps you plan
You deserve a clear picture of your net proceeds before you decide your next move. Our team coordinates closely with escrow to confirm your REET figures early, flag potential exemptions, and make sure the correct affidavit and receipts are in your file. If your sale involves life-stage transitions, estate matters, or a property refresh before listing, we can manage the process while keeping your timeline and bottom line front and center.
Our approach combines design leadership, project-managed prep, and disciplined transaction systems. That means your sale looks its best, moves efficiently through escrow, and closes with fewer surprises.
Ready to sell with clarity and confidence? Connect with the Six Degrees Team to map your net proceeds, timeline, and next steps.
FAQs
What is REET in Washington home sales?
- REET is a state tax on the sale or transfer of real property, typically paid by the seller at closing based on the sale price.
Who pays REET in a Kirkland sale?
- By statute the transferor is liable, and in typical closings escrow deducts REET from the seller’s proceeds and remits it at recording.
When is REET due in King County?
- REET is generally due at or before the deed is recorded; escrow submits the payment and affidavit with the recording package.
Is REET the same as capital gains tax?
- No. REET is a transfer tax due at closing, while capital gains is an income tax reported on your tax return.
Do 1031 exchanges remove REET?
- Not automatically. A 1031 exchange may defer income taxes for qualifying investment property, but REET is typically still due unless a statutory exemption applies.
Are there REET exemptions for family transfers?
- Some transfers between spouses, transfers incident to divorce, and certain transfers due to death may qualify, each with specific documentation requirements.
How will REET appear on my closing statement?
- You’ll see REET as a seller debit; escrow calculates the amount using the current schedule and subtracts it from your net proceeds.
Where can I confirm the current REET schedule?
- Check the Washington Department of Revenue’s Real Estate Excise Tax page and the King County Treasurer’s site for local filing details.
