Washington State excise tax has made a progressive move that will save most sellers a little bit of money in 2020.
Washington state has one of the highest excise tax rates in the country, 1.78%…which is a tax many sellers are not aware of before they list their home. After factoring Real Estate fees and other closing costs, this is part of what makes the average sellers closing costs total around 8%.
The new rates look like this:
Under $500,000, 1.6%
$500,000 to $1,500,000, 1.78%
$1,500,000 to $3,000,000, escalating to 3.5%.
For most sellers, this will save them up to $1,400..because if your selling a home for $600,000, you still save on the rate going from 1.78% to 1.6% on the first $500,000 (a $1,400 savings).
See example of how the new excise tax rate will effect your sale below at $700,000.