Last updated June 2026. General information only — not tax or legal advice. Confirm your numbers with your county treasurer or a licensed professional.
You found a buyer, you agreed on a price, and you’re already picturing what you’ll walk away with. Then the escrow officer mentions the Real Estate Excise Tax — and a few thousand dollars you weren’t counting on quietly comes off the top.
If you’re selling a house anywhere in Washington — Longview, Kelso, Centralia, Chehalis, Castle Rock, Raymond, or out on the coast — REET is one of the few costs you cannot negotiate away. The good news: once you understand how it works, you can plan around it and protect the rest of your net proceeds. And if you’d rather skip the costs entirely, you can sell your house directly to us for cash.
What Is Washington’s Real Estate Excise Tax (REET)?
REET is a tax on the sale of real estate in Washington State. According to the Washington Department of Revenue, it’s charged on the full selling price of the property, and in nearly every sale the seller pays it — it comes out of your proceeds at closing, collected by escrow and remitted to the county treasurer.
Two pieces make up your total REET bill:
- The state portion — a graduated (tiered) rate set by Washington State.
- The local portion — an extra rate added by your city or county, usually 0.25%–0.50%.
Added together, that’s your total excise tax. For most homes in Southwest Washington, the combined rate lands between 1.35% and 1.60% of the sale price.
2026 Washington REET Rates (State Portion)
Washington uses a graduated structure — different portions of your sale price are taxed at different rates, like income-tax brackets. Per the Department of Revenue, these rates have been in effect since January 1, 2023 and remain current for 2026:
| Portion of Selling Price | State REET Rate |
|---|---|
| $525,000 or less | 1.10% |
| $525,000.01 – $1,525,000 | 1.28% |
| $1,525,000.01 – $3,025,000 | 2.75% |
| $3,025,000.01 and above | 3.00% |
“Graduated” means you do not pay the higher rate on your whole sale price. Sell for $600,000 and only the slice above $525,000 is taxed at 1.28% — the first $525,000 is still taxed at 1.10%.
Local REET Rates in Southwest Washington
On top of the state rate, your city or county adds a local rate. Here’s where it lands across our home market (verified against the Washington DOR, 2026):
| Area | Local Rate | Combined (under $525K) |
|---|---|---|
| Longview, Kelso, Castle Rock, Kalama (Cowlitz) | 0.25% | 1.35% |
| Woodland (Cowlitz) | 0.50% | 1.60% |
| Centralia, Chehalis (Lewis) | 0.50% | 1.60% |
| Raymond, South Bend, Long Beach, Ilwaco (Pacific) | 0.25% | 1.35% |
Local rates change periodically — confirm yours with the Cowlitz, Lewis, or Pacific county treasurer before closing.
Example: REET on a $450,000 Home in Longview
Here’s a real Southwest Washington example — a $450,000 sale in Longview, where the local rate is 0.25%:
| State REET ($450,000 × 1.10%) | $4,950 |
| Local REET ($450,000 × 0.25%) | $1,125 |
| Total Excise Tax (1.35%) | $6,075 |
That $6,075 is gone before you ever see a dime — and it’s the same whether you sell to a retail buyer or a cash buyer like us. (In a 0.50% area like Woodland or Centralia, that same sale runs $7,200.) REET doesn’t care who buys your house; it’s tied to the sale itself.
Traditional Sale vs. Selling to Volcano Developments
Excise tax is the same either way — you can’t escape it. But look at everything else that comes off the top of a traditional sale, and what happens when you sell directly to us:
| What Comes Off the Top | Traditional Sale | Sell to Volcano |
|---|---|---|
| Real estate excise tax (REET) | $6,075 | $6,075 |
| Agent commissions (~5.5%) | $24,750 | $0 |
| Repairs & pre-listing prep | $10,000 | $0 |
| Buyer closing-cost concessions | $5,000 | $0 |
| Holding costs while you wait (3 mo) | $4,500 | $0 |
| Total deducted before you get paid | ≈ $50,325 | $6,075 |
| Time to close | 60–90+ days | As few as 7 days |
| Showings, cleaning & open houses | Yes | None |
Same excise tax. About $44,000 less in everything else — and weeks instead of months. See what we’d offer on your house with no obligation.
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Are There Any REET Exemptions?
Yes — Washington exempts certain transfers, though most ordinary home sales don’t qualify. According to the Department of Revenue, common exemptions include:
- Transfers by inheritance or through a will
- Gifts with no money changing hands
- Transfers between spouses as part of a divorce or separation
- Transfer-on-death deeds and certain title corrections
- Transfers to or from a government entity
An excise tax affidavit must be filed with the county treasurer (usually within one month of the sale) even when an exemption applies. Selling vacant land instead? REET applies there too — here’s how selling land to us works.
Frequently Asked Questions
Who pays the real estate excise tax — buyer or seller?
The seller, in nearly all sales. It’s collected at closing by the escrow agent and paid to the county treasurer, straight out of your proceeds.
How much is REET on a typical Washington home?
For homes under $525,000, the state rate is 1.10% plus a 0.25%–0.50% local rate — about 1.35%–1.60% combined. On a $450,000 home in Longview, roughly $6,075.
Can I avoid paying REET?
Not on a normal sale — it applies whether you sell retail or for cash. Only specific transfers (inheritance, gift, divorce, certain government transfers) are exempt. What you can avoid are the bigger costs around it.
Does selling for cash change the excise tax?
No. REET is based on the sale price, not the buyer. The advantage of a cash sale is eliminating the other costs — commissions, repairs, concessions, holding costs — which dwarf the excise tax.
When do I pay REET?
At closing. Your escrow officer calculates it, deducts it, and files the affidavit. You don’t write a separate check or deal with the state yourself. More questions? See our FAQ.
The Bottom Line
Washington’s excise tax is real, but it’s predictable and small next to the costs you actually control. Once you know your number, the only question left is how much of your proceeds you want to keep.
Related: Sell your house fast for cash · Selling vacant land in Washington · Common questions · About Volcano Developments
Sell Your Washington House the Simple Way
Volcano Developments buys houses as-is across Cowlitz, Lewis, and Pacific counties. No commissions, no repairs, no waiting — just a fair cash offer and a closing date you choose.