Who Actually Pays the Transfer Tax When You Buy a Home in Washington?

If you’re buying your first home in Washington after living somewhere else, one detail tends to catch people off guard at closing: the transfer tax. In a lot of states, that’s a buyer expense. In Washington, it isn’t — and knowing that ahead of time can save you a confusing moment during your closing disclosure review.

REET — Washington’s real estate transfer tax

Washington calls its transfer tax the Real Estate Excise Tax, or REET. Unlike many other states, REET is paid by the seller, not the buyer, as part of the closing costs on the sale side. If you’re moving here from a state where transfer tax is a standard buyer line item, this is one less cost to budget for — and one more reason your closing costs here might actually look a little different than what you were expecting based on your last purchase somewhere else.

Washington is not a state where the buyer pays transfer tax. If you budgeted for one anyway based on experience elsewhere, that’s a cost you can take back off your list.

Why this is worth knowing before you get to the closing table

It’s a small detail in the grand scheme of a home purchase, but it’s exactly the kind of state-specific fact that trips up buyers who are relocating and budgeting based on assumptions from wherever they moved from. Closing costs vary enough state to state that it’s worth having someone local walk you through what you’ll actually owe here — not what you’d owe somewhere else.

If you’re relocating to South King County and want a clear, accurate picture of what your actual closing costs will look like — REET included, or in this case, not included — that’s a conversation I have with every out-of-state buyer I work with. Reach out and I’ll walk you through exactly what to expect, so nothing at the closing table is a surprise.