Skip To Content
    • Home
    • Blog
    • Changes to the Real Estate Excise Tax (REET)

    Changes to the Real Estate Excise Tax (REET)

     


    What is Real Estate Excise Tax? REET is a tax on the sale of real estate. The real estate excise tax is typically paid by the seller of the property, although the buyer is liable for the tax if it is not paid. The tax also applies to transfers of controlling interests (50% or more) in entities that own property in the state

    Currently the REET rate is a flat rate of 1.78, but on Jan 1 2020 the tax will switch over to a tiered rate. See below for a detailed infographic explaining the new. tiered rate

    You’re probably wondering if the changes to the tax will affect you. Click here to get a free home evaluation and see if this new tax change will affect you.

    The new tax will more closely resemble our current income tax structure. For example, if the total sale price is $4.4 million, then the first $500,000 is taxed at 1.10%. The next $1 million is taxed at 1.28%. The next $1.5 million is taxed at 2.75% and the final $1.4 million is taxed at 3%.

     

     

    Trackback from your site.

    Leave a Reply

    We speak North West. We speak Real Estate.

    Jeff Costello is a highly knowledgeable and competent real estate professional. He successfully ‘short sold’ three of my properties – two residential rentals and my primary residence. Not only did he protect my interests along the way, but he was able to sell them in a remarkably short time frame (every one within a two to three month period) and brought in many of his own prospective buyers. Throughout the process, he was proactive every step of the way, going above and beyond my expectations i…
    Michelle M., Kirkland