10/12/2026
Starting January 1, 2027, Washington is changing how much tax you pay to sell your own home. Hereβs the myth I keep running into already: βI should list for $549,000 instead of $555,000 so I donβt get pushed into the higher tax bracket.β
Thatβs not how it works, and believing it is costing people money.
Washingtonβs Real Estate Excise Tax is GRADUATED, like income tax brackets. The new 2027 state rates are 1.10% up to $551,000, 1.28% from $551,000 to $1,551,000, 2.75% up to $3,051,000, and 3.00% above that. Only the slice of your sale price that falls INSIDE each bracket gets taxed at that bracketβs rate ... not your entire sale price.
Run the actual numbers: a $700,000 sale owes roughly $7,968 in state R**T either way the math shakes out. Pricing $6,000 lower to βstay under a thresholdβ doesnβt save you $6,000 in tax. It costs you $6,000 in sale price to chase a tax savings measured in dollars, not thousands.
What I actually do differently before we ever talk list price: we run your real net proceeds ... mortgage payoff, state AND local R**T, title, escrow, commission, and any concessions. The list price is a negotiating number. Your net is the number that matters.
If youβre thinking about selling in Bothell or anywhere in Snohomish County before or after the bracket changes hit, letβs run your actual numbers together. Shoot me a DM.
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