Who pays Washington’s real estate excise tax when a home is sold in Bothell, and how much could a seller pay in 2026?

In Washington, the seller usually pays Real Estate Excise Tax (REET) when real property is sold. For most residential property, the state portion is calculated using graduated tax brackets, and Bothell currently adds a 0.50% local REET, whether the property is on the King County or Snohomish County side of the city.

If you are preparing to sell a home in Bothell, one number on your estimated closing statement deserves more attention than it often gets:

Real Estate Excise Tax.

REET can amount to thousands, or tens of thousands, of dollars, depending on your sale price.

It can also be confusing because Washington does not simply apply one flat state percentage to every residential sale. The state uses a graduated structure, which means different portions of your selling price can be taxed at different rates. A local REET is then added to the state amount.

That distinction becomes especially important for higher-priced Bothell properties.

And because Bothell crosses the King–Snohomish county line, sellers sometimes assume the REET calculation will be dramatically different depending on which side of the city they live on.

For the current 2026 local rate, however, there is an important piece of good news: Bothell in King County and Bothell in Snohomish County both carry a 0.50% local REET rate. The location codes are different, but the local percentage is currently the same.

Here is what Bothell homeowners should understand before calculating how much they may actually walk away with after a sale.

What Is Washington Real Estate Excise Tax?

Washington Real Estate Excise Tax, commonly shortened to REET, is a tax imposed on sales of real property.

The Washington State Department of Revenue REET guide explains that sales of real property in Washington are subject to REET unless a specific exemption applies.

Real property can include more than the traditional sale of a house and land. Washington’s rules also address certain beneficial interests and transfers of controlling interests in entities that own Washington real estate.

For a typical Bothell homeowner selling a house, however, the important concept is straightforward:

REET is a transaction tax triggered by the sale of the real property.

It is different from your annual property tax bill.

It is also different from federal capital gains tax.

In fact, Washington’s Department of Revenue specifically identifies real estate as exempt from Washington’s capital gains tax. That does not eliminate possible federal income-tax consequences from a home sale, but it is an important distinction when discussing Washington taxes.

Who Actually Pays REET in Washington?

In a normal Washington real estate transaction, the seller usually pays REET.

King County’s Recorder’s Office states that the seller typically pays the tax and that excise tax assessed on the conveyance must be paid before the transfer documents are recorded.

Washington law goes further. The Department of Revenue explains that REET is usually paid by the seller, but if the seller fails to pay it, the buyer can become responsible, and unpaid REET can create a lien against the property.

That is why, in a conventional financed or cash home sale, you generally see REET accounted for as part of the seller’s closing expenses rather than receiving a bill months later.

The tax is normally incorporated into the closing process.

For sellers, that makes REET less of a “future tax problem” and more of a net-proceeds problem.

If you are estimating how much money you will receive from selling your Bothell home, REET should be part of that calculation before you list, not discovered after you have accepted an offer.

How Washington’s Graduated REET System Works

This is where sellers commonly get confused.

Washington’s state REET is graduated for most residential real estate.

According to the Washington Department of Revenue’s published structure, the current state brackets are:

Source: Washington State Department of Revenue — Real Estate Excise Tax.

The key word is “portion.”

If your property sells for $2 million, you do not simply multiply $2 million by 2.75%.

Instead, the first portion of the sale price is taxed at the first rate, the next portion at the second rate, and only the portion entering the third bracket receives the 2.75% state rate.

Think of it as a staircase rather than a switch.

Crossing into another bracket does not retroactively increase the state REET rate on every dollar below that threshold.

That distinction is particularly important for Bothell luxury sellers because the difference between the marginal rate and your effective rate can be substantial.

What Is the Local REET Rate in Bothell in 2026?

Washington’s state REET is only part of the calculation.

Local jurisdictions may also impose REET, and the local amount must be added to the state tax.

As of the Washington Department of Revenue’s rates effective May 1, 2026, Bothell in Snohomish County has a local REET rate of 0.50%. The state’s rate materials also identify Bothell’s separate King County location, and the local rate for Bothell on the King County side is likewise 0.50%.

That means a typical Bothell residential seller should plan around two components:

Graduated Washington state REET, plus
0.50% Bothell local REET.

Bothell’s position in two counties can still matter for the administration of your transaction, recording, and other property-specific matters. But the current local REET percentage itself is 0.50% on either side.

You can review Washington’s current jurisdiction-by-jurisdiction table through the Department of Revenue’s official REET rate resources.

What Does REET Actually Cost a Bothell Seller?

Let’s turn those percentages into dollars.

The following examples use the published state graduated brackets and a 0.50% Bothell local rate. They are simplified illustrations for planning, not an escrow quote or tax advice. Your actual transaction should be calculated using the applicable rate and circumstances at the time of sale.

Example 1: Selling a Bothell Home for $800,000

State REET

First $525,000 at 1.10%:

$5,775

Remaining $275,000 at 1.28%:

$3,520

Estimated state REET:

$9,295

Local Bothell REET

$800,000 × 0.50%:

$4,000

Estimated Total REET

$13,295

That is roughly 1.66% of the $800,000 selling price going toward state and local REET alone.

And remember: this is not your entire seller closing-cost estimate. Mortgage payoff, negotiated brokerage compensation, title and escrow charges, property-tax adjustments, possible HOA expenses, repairs, credits and other transaction-specific costs can affect net proceeds.

Example 2: Selling for $1.1 Million

At $1.1 million, the state calculation becomes:

First $525,000 at 1.10% = $5,775
Remaining $575,000 at 1.28% = $7,360
Estimated state REET = $13,135
Local 0.50% REET = $5,500

Estimated Total REET: $18,635

That is why a seller who simply thinks “the excise tax is about one percent” can materially underestimate the cost of selling.

In this example, the combined REET is nearly $19,000.

Example 3: Selling for $1.5 Million

For a $1.5 million Bothell sale:

First $525,000 at 1.10% = $5,775
Next $975,000 at 1.28% = $12,480
State REET = $18,255
Local REET at 0.50% = $7,500

Estimated Total REET: $25,755

For sellers approaching the luxury market, this is where accurate net-proceeds planning becomes increasingly important.

A $25,000-plus tax expense can materially affect decisions about pricing, repairs, concessions, your next-home budget, or how much cash you expect to carry into another transaction.

What Happens When a Sale Exceeds $1.525 Million?

This is the threshold higher-end Bothell homeowners should pay particular attention to.

The portion above $1,525,000 moves into the 2.75% state bracket under the current published structure.

Again, that does not mean the entire selling price is taxed by the state at 2.75%.

Consider a $2 million sale.

Estimated $2 Million Bothell REET

First $525,000 at 1.10%:

$5,775

Next $1,000,000 at 1.28%:

$12,800

Remaining $475,000 at 2.75%:

$13,062.50

Estimated state REET:

$31,637.50

Bothell local REET at 0.50%:

$10,000

Estimated Total: $41,637.50

At this price point, REET is no longer a small closing-line detail.

It is a $40,000-plus planning item.

What About a $3.5 Million Luxury Sale?

The impact becomes even clearer at the upper end of the market.

Using the current brackets, a $3.5 million sale reaches the 3.00% state tier on the portion above $3.025 million.

The simplified calculation would be:

First $525,000 at 1.10% = $5,775
Next $1,000,000 at 1.28% = $12,800
Next $1,500,000 at 2.75% = $41,250
Remaining $475,000 at 3.00% = $14,250
Estimated state REET = $74,075
Local Bothell REET at 0.50% = $17,500

Estimated Total REET: $91,575

For a luxury seller, that is nearly $92,000 in REET alone.

This is exactly why a luxury-home pricing conversation should not stop at, “What can I sell my house for?”

A better question is:

What is my projected net at several realistic sale prices?

Those are two very different numbers.

Quick Bothell REET Comparison

Here is a simplified planning table using the current published state brackets plus Bothell’s 0.50% local rate:

These examples illustrate why the phrase “REET rate” can be misleading without understanding the graduated calculation.

The effective percentage changes as the sale price moves through the brackets.

Why REET Should Be Calculated Before You List Your Bothell Home

When homeowners talk about selling costs, the conversation often centers on brokerage compensation.

That is only part of the equation.

Your estimated net proceeds can also be affected by:

Washington state and local REET
Mortgage and other lien payoffs
Escrow charges
Title-related charges
Property-tax prorations
HOA-related fees or assessments, when applicable
Repairs or improvements made before closing
Seller concessions negotiated in the purchase contract
Other property-specific or transaction-specific costs

The best time to discover those numbers is before you commit to a pricing or selling strategy.

A preliminary seller net sheet can help you compare scenarios.

For example, what happens to your expected proceeds if your home sells for $1.2 million instead of $1.15 million?

What if you accept a higher offer that includes a substantial seller credit?

What happens if your home crosses the $1.525 million REET threshold?

What does a $25,000 pre-listing improvement actually need to add to your sale outcome to make sense?

Those questions are more useful than focusing exclusively on gross sale price.

Does Crossing a REET Threshold Make a Higher Sale Price a Bad Thing?

No.

This is one of the most important misconceptions to clear up.

Because the Washington state REET structure is graduated, moving into a higher bracket does not mean the higher percentage suddenly applies to your entire selling price.

Only the dollars within the higher bracket receive that rate.

So if an offer pushes your sale price just above $1.525 million, you generally should not think, “I need to keep my price under the threshold to avoid the 2.75% rate.”

The tax calculation is marginal.

That means you should evaluate offers based on net proceeds and the overall terms of the transaction, rather than assuming crossing a REET bracket automatically makes the higher offer financially worse.

Are Any Washington Real Estate Transfers Exempt From REET?

Yes, but exemptions are specific and should not be assumed.

The Washington Department of Revenue publishes guidance on commonly used exemptions and explains that the facts and circumstances of a transfer determine whether an exemption applies. The applicable Washington Administrative Code provision must be identified on the REET affidavit when an exemption is claimed.

Potentially relevant situations can include certain gifts, inheritances and other qualifying transfers.

But “no money changed hands” does not automatically mean “no REET.”

Debt can matter.

For example, the Department of Revenue notes that relief from underlying debt can constitute consideration in some transfers.

This becomes particularly important in family transfers, entity transactions and other arrangements that do not look like an ordinary arms-length home sale.

If your transaction is unusual, verify the tax treatment with the appropriate tax, legal or escrow professional rather than assuming an exemption applies.

Official exemption information is available through the Washington Department of Revenue’s REET exemption guide.

When Is Washington REET Due?

For a deeded transfer, Washington says REET is due on the date of sale, regardless of the recording date.

The Department of Revenue also states that penalties and interest can apply if REET is not paid within the required timeframe. For deeded transfers, a $5 state technology fee applies, and additional affidavit processing charges can apply when an exemption is claimed.

In a standard residential transaction handled through escrow, the professionals coordinating the closing typically account for the tax as part of the settlement process.

Snohomish County likewise notes that excise tax must be paid when processed and that Washington law requires a Real Estate Excise Tax Affidavit to be completed and signed before a deed is recorded to transfer ownership.

For King County properties, sellers can also review the King County Recorder’s REET information.

Bothell Is in Two Counties, Does That Change the Tax?

Bothell’s geography makes this a particularly worthwhile question.

The city spans both King County and Snohomish County.

Washington’s REET tables therefore have separate location codes for the two portions of Bothell.

For the current local REET rate, however, both sides are 0.50%.

That does not mean every closing detail is identical between the counties. County-specific recording procedures, property information, and other administrative details can differ.

It does mean sellers should avoid assuming they have a different local REET percentage simply because their Bothell property sits north or south of the county line.

Your property’s actual jurisdiction should still be verified as part of preparing your transaction.

Why I Discuss REET Early With Bothell Sellers

Marie-Noelle Metseye: Helping Sellers Think Beyond the Listing Price

As a Luxury Realtor working with homeowners in the Bothell market and surrounding communities, I believe a successful sale should be measured by more than the number printed at the top of the purchase agreement.

The number that ultimately matters to you is what the transaction allows you to accomplish.

That means understanding your likely net proceeds before making major decisions.

When I help a homeowner prepare for a sale, I want the financial conversation to happen early enough to influence the strategy, not after the home is under contract.

For a Bothell seller, that can mean looking at several questions together:

What is a realistic market range for the property?

How would different sale prices change estimated REET?

What other selling expenses should be included in the preliminary net?

Which pre-market improvements are likely to support the positioning of the home?

What concessions might make sense, or not make sense, once you look at their effect on net proceeds?

If this is a luxury property, how do the upper REET brackets affect your estimated proceeds?

This is especially important when you are making another financial decision immediately after the sale, buying another property, relocating, downsizing, investing, or simply deciding whether this is the right year to sell.

A good real estate strategy should connect market value, positioning, transaction structure and estimated net proceeds.

REET is only one part of that equation, but in Washington it is too significant to leave until the end.

My role is not to replace your CPA, attorney, escrow officer or tax adviser. It is to help you approach your real estate decision with the right questions, realistic numbers and a strategy built around your goals.

Frequently Asked Questions About Washington REET in 2026

Does the buyer or seller pay real estate excise tax in Washington?

The seller usually pays Washington REET. Washington’s Department of Revenue notes that if the seller does not pay it, however, the buyer can become responsible and the unpaid tax can create a lien against the property.

Is Washington REET a flat percentage?

Not for most residential properties. The state portion uses graduated brackets, meaning different portions of the selling price are taxed at different rates. Local REET is then added.

What is Bothell’s local REET rate in 2026?

The current published local rate is 0.50% for Bothell in both Snohomish County and King County.

If my Bothell home sells for more than $1.525 million, is the whole price taxed at 2.75%?

No. Under the graduated structure, the 2.75% state rate applies only to the portion of the selling price within that bracket. Lower portions remain subject to their respective lower state rates.

How much REET would I pay on a $1 million Bothell home?

Using the current brackets and 0.50% local rate, the simplified estimate is:

$525,000 × 1.10% = $5,775
$475,000 × 1.28% = $6,080
State REET = $11,855
Local REET = $5,000

Estimated total REET: $16,855.

Your actual closing statement should be used for the final figure.

Is REET the same as capital gains tax?

No. REET is a tax associated with the real estate transaction itself. Capital gains taxation is a separate issue. Washington’s state capital gains tax specifically exempts real estate, although federal income-tax rules may still apply to a sale depending on the seller’s circumstances.

Can a family transfer avoid REET?

Possibly, depending on the circumstances, but never assume that simply transferring property to a relative makes the transaction exempt. Consideration, including certain debt relief, can affect taxability. Washington publishes specific exemption requirements.

Can I estimate REET before putting my home on the market?

Yes, and you should.

A preliminary estimate allows you to model your likely net proceeds at different selling prices before you make decisions about listing, improvements, concessions or your next purchase.

Final Takeaway for Bothell Sellers

Washington Real Estate Excise Tax is one of the most important seller closing costs to understand before listing a home.

For most residential sellers in 2026, the state tax is calculated using graduated brackets. Bothell then currently adds a 0.50% local REET on both the King County and Snohomish County sides of the city.

At $800,000, our simplified example produces approximately $13,295 in total REET.

At $1.5 million, approximately $25,755.

At $2 million, approximately $41,637.50.

And at $3.5 million, the estimate reaches approximately $91,575.

The larger lesson is not simply that REET can be expensive.

It is that your gross selling price is not your net proceeds.

Before you choose a list price, negotiate an offer or make plans for the equity in your Bothell home, understand what the transaction may actually leave you with.

Thinking About Selling a Home in Bothell?

If you would like to understand what your home could sell for and what you may actually net after REET and other estimated selling expenses, I can help you build the numbers before you make a decision.

Contact me for a personalized Bothell home-selling consultation.

Contact Marie-Noelle Metseye

Marie-Noelle Metseye, Luxury Realtor

📞 425-439-9299

📧 [email protected]

🌐 mnmluxury.com

Sources & Further Reading

This article was researched using current government resources available in August 2026. Tax rules and rates can change, so sellers should verify the rate applicable to their transaction at the time of sale.

Current REET rules, graduated state brackets, payment requirements and rate resources

Official 2026 local REET rate table

King County REET information

Snohomish County excise-tax resources

Official REET exemption guidance

Washington REET administrative rules

Washington statutes governing excise tax on real estate sales.

Attribution

Written by Marie-Noelle Metseye, Luxury Realtor

Serving Bothell and the surrounding real estate market.

This article is provided for general real estate education and planning purposes. Tax and legal consequences depend on the facts of a particular transaction. For transaction-specific tax or legal advice, consult the appropriate qualified professional.

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Washington Real Estate Excise Tax 2026: Bothell Seller REET Guide