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%.