Real estate excise tax (REET) is a tax on the sale of real property. All sales of real property in the state are subject to REET unless a specific exemption is claimed. REET also applies to transfers of controlling interest (50% or more) in entities that own real property in the state.
Is B&O tax the same as excise tax?
Business and occupation tax overview Washington’s B&O is an excise tax measured by the value of products, gross proceeds of sales, or gross income of a business with over 30 different classifications and associated tax rates ranging from 0.138 percent to 1.5 percent.
What is excise tax in Washington?
Washington state levies a real estate excise tax (REET) on all property sales. This state tax rate is 1.28% of a property’s full selling price.
What is the real estate excise tax in Washington State?
New graduated real estate excise tax (REET) Effective Jan. 1, 2020, sales of real property located in Washington are subject to a graduated real estate excise tax (REET) rate. The graduated state REET rates replace the previous flat state REET rate. The following state REET rates apply: Sale price thresholds Tax rate $500,000 or less 1.10%
Is there an excise tax on the sale of real property?
(1) There is imposed an excise tax upon each sale of real property. (a) Through December 31, 2019, the rate of the tax imposed under this section is 1.28 percent of the selling price. (b) Beginning January 1, 2020, except as provided in (c) of this subsection, the rate of the tax imposed under this section is as follows:
What are exemptions for real estate in Washington State?
Real property transferred to heirs for inheritance purposes is exempt with valid supporting documentation. Required documents may include a death certificate, community property agreement or copies of recorded trusts or probated wills.
When to pay real estate excise tax ( Reet )?
Real Estate Excise Tax (REET) All excise taxes assessed on a conveyance must be paid prior to the recording of the conveyance documents, for example the warranty deed or real estate contract. A real estate excise tax affidavit must be completed and signed by all parties involved in a real property conveyance.
