Seattle Real Estate Taxes: What Buyers and Sellers Pay

Reviewed October 2, 2026 · Enrique Pelayo Jr., Owner & Designated Broker. General information, not tax advice.

Seattle real estate taxes: two different expenses

Annual property tax is an ongoing ownership expense tied to assessed value and the property's levy code. Real estate excise tax, commonly called REET, is a transaction tax that generally applies when real property is sold. A mortgage payoff does not reduce the taxable selling price for a standard taxable sale. Federal income or capital gains tax is a separate question and is not calculated by the seller worksheet on this website.

For a buyer, the useful question is whether the full monthly housing cost works after taxes, insurance, dues and maintenance. For a seller, it is how much cash remains after all obligations are settled. Keep those two perspectives in view if you are selling one home and buying another. A good price on either transaction does not automatically make the combined move affordable.

How King County calculates property tax

King County publishes assessed values and levy rates by property and taxing area. To estimate the tax component, divide the assessed value by 1,000 and multiply by the applicable levy rate per $1,000. Use the property's current record, not the listing's asking price, and check for exemptions and other charges on the statement. Source: King County's collective rates and calculation method.

The county's 2026 table lists Seattle levy codes 0010, 0011, 0013, 0014, 0016 and 0025 at $9.90845 per $1,000. Codes 0030 and 0032 are listed at $12.22112 per $1,000. That difference is why one assumed Seattle percentage is not reliable for every home. Source: 2026 King County codes and levies, page 1.

A property-tax budget example

Assume an assessed value of $825,000 and levy code 0010, without an exemption. The calculation is 825 × $9.90845, or approximately $8,174 per year. Dividing by twelve gives approximately $681 per month for planning. This illustration is not a quote for an $825,000 purchase: assessed value and sale price are different, and your parcel may carry different rates or additional charges.

Ask your lender to identify the annual tax figure used in the proposed payment. If a listing displays an old year, a partial assessment or a seller-specific benefit, that figure may not describe your future obligation. For new construction, ask whether the estimate reflects the completed improvements. A smaller initial escrow amount is not proof that the ongoing tax cost will remain low.

Why a tax bill can change

King County's 2026 property-tax overview explains that bills support multiple taxing districts and voter-approved measures. Do not assume that a percentage change in assessed value creates an identical percentage change in the bill. Read the current statement and keep a reserve for future adjustments instead of budgeting to the last available dollar.

When comparing homes, keep the tax year consistent. A monthly payment comparison is less useful if one property uses an older tax statement and another uses a current estimate. Ask for the assumptions in writing so you can distinguish a financing difference from an expense that was simply entered differently.

Washington excise tax on a home sale

For a standard taxable residential sale through December 31, 2026, the state REET rates apply in graduated portions:

Only the portion in each band receives that rate. Local REET is additional. DOR has announced new state thresholds of $551,000, $1,551,000 and $3,051,000 beginning January 1, 2027; the corresponding rates remain unchanged. Use the schedule applicable to your transfer date. Source: Washington Department of Revenue REET guidance.

For an $825,000 taxable Seattle sale in 2026, state REET is $9,615. Seattle's 0.50% local rate adds $4,125, for $13,740 before fees. DOR lists a $5 technology fee. Source for the local rate: DOR local REET schedule effective May 1, 2026. Have the settlement provider confirm the location code and final amount.

Exemptions and deferrals are different

King County offers property-tax relief programs for qualifying seniors, people with disabilities and certain disabled veterans. Eligibility depends on the program's age or disability criteria, household income, ownership and occupancy requirements. An exemption can reduce the obligation; a deferral postpones payment and creates a lien with interest. Review the county exemption and deferral guidance and current application rather than assuming a benefit applies automatically.

Before selling, identify any deferred amounts that must be addressed at closing. Before buying, do not assume the seller's exemption transfers to you. If you are comparing staying with downsizing, obtain a benefit review before making either scenario your baseline. The right comparison uses the costs you would actually face under each choice.

How taxes change net proceeds

Put REET in the transfer-tax field of the net proceeds calculator. Put other settlement charges and any applicable property-tax adjustments into the appropriate cost estimate, taking care not to count the same item twice. Add the lender's dated payoff, other liens, agreed compensation, repairs, credits and moving expenses. A draft settlement statement can help reconcile the worksheet with the actual transaction.

For example, a seller who looks only at sale price minus mortgage balance could overstate the cash available for the next down payment. The tax calculation is one part of that difference; contractual credits and preparation costs can matter too. Run several scenarios before deciding whether a price adjustment, repair allowance or different closing date improves your overall position.

Review the move as one financial decision

Enrique's mortgage-lending background helps connect the sale's estimated proceeds with the cash reserves and monthly costs of another purchase. Bring your current tax statement, payoff estimate and proposed timeline to a selling strategy conversation. We can organize the assumptions and identify what needs confirmation from your lender, settlement provider or tax professional before you commit.

Use written figures for the important decisions. A property-specific review is more useful than an average tax percentage, and an itemized proceeds estimate is more useful than a broad promise about what your home will bring. The objective is a move that still makes sense when all the dollars are counted.