Is There Tax on Real Estate Sales in Tacoma?
Is there tax on real estate sales in Tacoma? Yes! Learn about the graduated State REET and the 0.50% local Tacoma surcharge. Understand the true cost of excise tax and who is responsible for paying it (the seller).
Yes! Excise tax is basically unavoidable, paid by sellers. People often say it runs $1.75% but that is an oversimplification. It breaks down like this:
Real Estate Excise Tax (REET) in Tacoma, WA
1. State REET (Graduated)
Washington state imposes a graduated Real Estate Excise Tax (REET) on most property sales. As of January 1, 2023 (and continuing through 2026), the state rates are:
- 1.10% on the first $525,000
- 1.28% on the portion between $525,000.01 and $1,525,000
- 2.75% on the portion between $1,525,000.01 and $3,025,000
- 3.00% on any amount above $3,025,000 (Pierce County, InvestigateWest)
2. Local Add-On – Tacoma (Pierce County)
Tacoma adds a 0.50% local REET surcharge to the state rate.
So, total REET in Tacoma = State Rate + 0.50% Tacoma add‑on.
3. Who Pays It and When?
- Responsibility This falls on the seller.
- Payment must be made to the Pierce County Treasurer within one month of the sale—or before recording the deed. Escrow handles this, assuming you are using escrow.
Most of the revenue from the REET goes to the General Fund which supports a wide range of statewide programs, including education and social services. At the local level, much of it goes to transportation related capital improvements like pavement preservation, street lighting upgrades, pedestrian safety enhancements. It also goes to broader capital facilities. For example, equipment replacement at the Main Library in Tacoma.
