What Changes for Washington Home Sellers on January 1, 2027: Excise Tax Thresholds and a New Disclosure Question

Short answer: Two things change for Washington home sellers on January 1, 2027. The state excise tax (REET) thresholds rise, which lowers the tax by about $46.80 on most sales between roughly $551,000 and $1.5 million, and by about $429 on sales above $1,551,000. And the seller disclosure form gets one new Environmental question, about family burial grounds, mausoleums and columbaria. Neither is a reason to push a December closing into January. The local excise rate, who usually pays REET, and the disclosure deadlines stay the same.

The REET thresholds, 2026 and 2027

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Source: Washington State Department of Revenue, Real estate excise tax page, checked October 30, 2026. The rates don't change; only the price points where each rate starts.

RCW 82.45.060 sets how this works. Every fourth year, DOR moves the first threshold by the lesser of shelter price growth or 5%, rounded to the nearest $1,000, and moves the higher thresholds by the same dollar amount. This time the first threshold moves from $525,000 to $551,000, so every threshold rises $26,000.

What that means in dollars

Because only $26,000 of each band moves, the saving is capped:

• $525,000 or less: no change. The whole price is already taxed at 1.1%.
• About $551,000 to $1,525,000: about $46.80 less. That is $26,000 moving from the 1.28% band to the 1.1% band.
• Above $1,551,000: about $429 less, because another $26,000 also moves from the 2.75% band to the 1.28% band.
• Above $3,051,000: about $494 less.

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State graduated REET plus the 0.50% local rate that applies in all six cities, including both the King and Snohomish County parts of Bothell (DOR local rate table effective May 1, 2026), before DOR's $5.00 technology fee. Medians are Redfin's single-family figures for the three months ending September 2026, checked October 30, 2026; your figure depends on your actual price.

Against total selling costs, a $47 difference won't decide anything. If a buyer is ready to close in December, a few extra weeks on the market for a small tax saving is rarely a good trade.

Which date counts

DOR says REET is due on the date of sale, regardless of when the deed is recorded, and penalties and interest apply if it isn't paid within one month of that date. If your closing is scheduled for the last few days of December, or could slip into January, ask your escrow officer which date they will report as the date of sale. The difference is small, but it is worth knowing which number will be on your settlement statement.

The seller disclosure form gets a new question

RCW 64.06.020 currently has two versions: one marked effective until January 1, 2027, and one effective January 1, 2027. Comparing the two, the 2027 version adds question 7L in the Environmental section: "Does the property include a family burial ground, mausoleum, or columbarium?"

The question follows a 2026 law that lets a person designate part of their own land as a family burial ground, with setbacks from property lines, rights-of-way, critical areas and wells (RCW 68.74.010). For almost every home sale the answer will be no. Two points still matter:

• It sits in the Environmental section. Under RCW 64.06.010, a buyer can't waive that section if any answer in it would be yes.
• If your listing straddles the new year, ask your agent which version of the form you'll be using when the disclosure is delivered.

What doesn't change

• Local REET. 0.50% in Lynnwood, Mukilteo, Edmonds, Everett, Mill Creek and Bothell under DOR's May 1, 2026 table.
• Who pays. DOR says the seller usually pays; if not, the buyer is responsible and unpaid tax can become a lien on the property.
• Fees. DOR's $5.00 technology fee per transfer.
• Disclosure timing. Delivery within five business days of mutual acceptance and a three-business-day buyer review, unless waived or otherwise agreed (RCW 64.06.030).

A short checklist for a December or January closing

1. Confirm the scheduled closing date and which date escrow will report as the date of sale.
2. Ask escrow to show the REET line both ways if the date could move.
3. Confirm which disclosure form version you're using, and answer the new 7L question if it's the 2027 form.
4. Plan around holiday closures at lenders, title and county offices when you set the date.

FAQ

Do Washington's REET thresholds change on January 1, 2027?

Yes. For sales beginning Jan 1, 2027, the Department of Revenue has set the state thresholds at $551,000, $1,551,000 and $3,051,000, up from $525,000, $1,525,000 and $3,025,000. The rates stay at 1.1%, 1.28%, 2.75% and 3.0%.

How much do I save on excise tax by selling in January instead of December?

Very little. On a sale between about $551,000 and $1,525,000 the state tax is about $46.80 lower. Above $1,551,000 the difference is about $429, and above $3,051,000 about $494. Sales of $525,000 or less pay the same either way. Local REET doesn't change.

Which date decides whether the 2026 or 2027 REET rates apply?

The Department of Revenue says REET is due on the date of sale, regardless of when the deed is recorded. If your sale is scheduled for the last days of December, ask your escrow officer which date they will report.

What changes on the Washington seller disclosure form in 2027?

The version of the form in RCW 64.06.020 that takes effect Jan 1, 2027 adds a question to the Environmental section: whether the property includes a family burial ground, mausoleum or columbarium. The rest of the form is unchanged.

When will the REET thresholds change again?

Under RCW 82.45.060, the Department of Revenue adjusts the thresholds every fourth year, based on the lesser of shelter price growth or 5%, rounded to the nearest $1,000. Updated thresholds apply on January 1 of every fourth year after 2023, so the next change would apply Jan 1, 2031.

Talk it through with a local agent

Peter Kim and Odigo Real Estate Club help sellers in Lynnwood, Bothell, Mill Creek, Mukilteo, Everett and Edmonds plan listing and closing dates around the year-end, with 25+ years combined experience, 593+ closings, and 122 five-star Zillow reviews. See our home selling services, the Washington closing process, the true cost of selling in Washington, or request a property valuation.

Odigo Real Estate Club · REAL Brokerage, WA #112064 · 16108 Ash Way, Suite 201, Lynnwood, WA 98087 · (425) 409-3823 · Mon–Sat 9 AM–6 PM, closed Sunday

Sources

• Washington State Department of Revenue, Real estate excise tax (graduated rates and thresholds through Dec 31, 2026 and for sales beginning Jan 1, 2027; who pays; when the tax is due; fees and penalties), https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax , accessed Oct 30, 2026.
• Washington State Department of Revenue, Local real estate excise tax rates effective May 1, 2026, https://dor.wa.gov/sites/default/files/2026-03/84-0013-May26_REET.pdf , accessed Oct 30, 2026.
• Washington State Legislature, RCW 82.45.060 (state REET rates; threshold adjustment every fourth year), https://app.leg.wa.gov/RCW/default.aspx?cite=82.45.060 , accessed Oct 30, 2026.
• Washington State Legislature, RCW 64.06.020 (seller disclosure statement form; version effective until Jan 1, 2027 and version effective Jan 1, 2027), https://app.leg.wa.gov/RCW/default.aspx?cite=64.06.020 , accessed Oct 30, 2026.
• Washington State Legislature, RCW 64.06.010 (transfers the disclosure chapter does not apply to; buyer waiver and the Environmental section), https://app.leg.wa.gov/RCW/default.aspx?cite=64.06.010 , accessed Oct 30, 2026.
• Washington State Legislature, RCW 64.06.030 (delivery of the disclosure statement; buyer’s three-business-day option), https://app.leg.wa.gov/RCW/default.aspx?cite=64.06.030 , accessed Oct 30, 2026.
• Washington State Legislature, RCW 68.74.010 (designation of a family burial ground on private land), https://app.leg.wa.gov/RCW/default.aspx?cite=68.74.010 , accessed Oct 30, 2026.
• Redfin, Bothell WA housing market (sale-to-list, homes sold above list and homes with price drops for September 2026, monthly history, Compete Score, single-family median sale price for the three months ending September 2026), https://www.redfin.com/city/29439/WA/Bothell/housing-market , accessed Oct 30, 2026.
• Redfin, Mill Creek WA housing market (sale-to-list, homes sold above list and homes with price drops for September 2026, monthly history, Compete Score, single-family median sale price for the three months ending September 2026), https://www.redfin.com/city/11701/WA/Mill-Creek/housing-market , accessed Oct 30, 2026.
• Redfin, Lynnwood WA housing market (sale-to-list, homes sold above list and homes with price drops for September 2026, monthly history, Compete Score, single-family median sale price for the three months ending September 2026), https://www.redfin.com/city/10421/WA/Lynnwood/housing-market , accessed Oct 30, 2026.
• Redfin, Mukilteo WA housing market (sale-to-list, homes sold above list and homes with price drops for September 2026, monthly history, Compete Score, single-family median sale price for the three months ending September 2026), https://www.redfin.com/city/12197/WA/Mukilteo/housing-market , accessed Oct 30, 2026.
• Redfin, Everett WA housing market (sale-to-list, homes sold above list and homes with price drops for September 2026, monthly history, Compete Score, single-family median sale price for the three months ending September 2026), https://www.redfin.com/city/5832/WA/Everett/housing-market , accessed Oct 30, 2026.
• Redfin, Edmonds WA housing market (sale-to-list, homes sold above list and homes with price drops for September 2026, monthly history, Compete Score, single-family median sale price for the three months ending September 2026), https://www.redfin.com/city/5357/WA/Edmonds/housing-market , accessed Oct 30, 2026.

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