Selling a home in Mukilteo comes with one predictable cost you can plan for: Washington’s Real Estate Excise Tax, or REET. If you understand how the state’s graduated rates and the city’s flat rate work together, you can price and negotiate with confidence. In this guide, you’ll learn what you’ll owe, when it is due, common exemptions, and real examples for typical Mukilteo price points. Let’s dive in.
Washington REET basics for Mukilteo
Washington charges REET on most real estate sales. Your total REET equals the state’s graduated tax plus Mukilteo’s local rate. The City of Mukilteo’s local REET is 0.50% of the sale price and supports city capital improvements. You can see this reflected in the city code and the state’s local rate table for location code 3114. (Mukilteo municipal code, DOR local rate table)
Current state graduated rates
Washington applies marginal rates to portions of your sale price. The current brackets are: (DOR REET overview)
- $0 to $525,000: 1.10%
- $525,000.01 to $1,525,000: 1.28%
- $1,525,000.01 to $3,025,000: 2.75%
- $3,025,000.01 and up: 3.00%
Mukilteo’s 0.50% local rate applies to the entire sale price and is added after the state portion. Agricultural-classified or timberland sales may use a flat 1.28% state rate. Confirm your property’s classification if that could apply. (DOR REET overview)
How your REET is calculated
Think of the state tax like income tax brackets. Each part of your sale price is taxed at the rate for that bracket, then the city’s 0.50% applies to the full price. A small state technology fee of $5.00 is added to every transfer. (DOR REET overview)
Real examples for Mukilteo price points
These samples use the state brackets above plus Mukilteo’s 0.50% rate and add the $5 tech fee. They are for planning only. (DOR REET overview)
$500,000 sale price
- State: $500,000 × 1.10% = $5,500.00
- Local: $500,000 × 0.50% = $2,500.00
- Total tax: $8,000.00 + $5.00 fee = $8,005.00
$800,000 sale price
- State: first $525,000 @1.10% = $5,775.00; next $275,000 @1.28% = $3,520.00; state subtotal = $9,295.00
- Local: $800,000 × 0.50% = $4,000.00
- Total tax: $13,295.00 + $5.00 fee = $13,300.00
$1,800,000 sale price
- State: $525,000 @1.10% = $5,775.00; $1,000,000 @1.28% = $12,800.00; $275,000 @2.75% = $7,562.50; state subtotal = $26,137.50
- Local: $1,800,000 × 0.50% = $9,000.00
- Total tax: $35,137.50 + $5.00 fee = $35,142.50
$3,500,000 sale price
- State: $525,000 @1.10% = $5,775.00; $1,000,000 @1.28% = $12,800.00; $1,500,000 @2.75% = $41,250.00; $475,000 @3.00% = $14,250.00; state subtotal = $74,075.00
- Local: $3,500,000 × 0.50% = $17,500.00
- Total tax: $91,575.00 + $5.00 fee = $91,580.00
Who pays, when, and how
Due at closing in Snohomish County
The seller is normally responsible for REET. It is due on the date of sale and must be paid before the deed is recorded with Snohomish County. If the seller does not pay, the buyer can be held liable. County treasurers collect both state and local REET. (DOR REET overview)
Forms and fees
A Real Estate Excise Tax Affidavit is filed with the conveyance and payment to the county treasurer. Escrow or title usually prepares and submits this at closing. A $5.00 state technology fee applies to every transfer, and an additional $5.00 processing fee applies if you claim an exemption. There is a $10 minimum combined charge. (DOR REET overview)
Late penalties and interest
If REET is not paid within one month of the sale date, a 5% penalty applies. The penalty rises to 10% after two months and 20% after three months. Interest accrues monthly from the sale date until paid. (DOR REET overview)
Common exemptions and special cases
- Gifts with no consideration may be exempt, but debt assumptions or payments can make some or all of the transfer taxable. A supplemental statement and documentation are required. (WAC 458-61A)
- Transfers due to death, certain divorce or domestic partnership dissolutions, re-records, and rescissions can qualify. Only one exemption can be claimed per transfer. (DOR REET overview)
- Like-kind exchanges have special treatment and paperwork. Review the rules and talk with your tax advisor. (WAC 458-61A)
Related tax questions sellers ask
- Washington’s capital gains excise tax does not apply to sales of real property. Complex ownership structures can be different, so confirm with your tax professional. (Washington regulation)
- For federal taxes, many sellers can exclude up to $250,000 of gain ($500,000 for married filing jointly) on a primary residence if ownership and use tests are met. See IRS Publication 523 and consult a CPA. (IRS Publication 523)
Quick checklist for Mukilteo sellers
- Ask your agent or escrow to estimate REET early and show it on your net sheet. Use Mukilteo location code 3114 and the city’s 0.50% rate with the state brackets. (DOR local rate table)
- Confirm if an exemption might apply and gather documents for the affidavit and any supplemental statements. (WAC 458-61A)
- Verify who will calculate and remit REET at closing and get the final REET figure before you sign. (DOR REET overview)
- Build REET into your pricing and negotiation strategy, especially for higher-priced homes where graduated rates increase your closing cost. (DOR REET overview)
Work with a team that anticipates the details
You deserve a clear plan from list to close, including line-by-line estimates of REET and other costs. Our team coordinates with escrow, confirms filings, and keeps your closing on schedule so you can move forward with confidence. If you are selling in Mukilteo or nearby Snohomish County, connect with Hawkins & O'Bryant for a calm, detailed, and results-focused sale.
FAQs
How does Washington REET work for a Mukilteo sale?
- Your total REET equals Washington’s graduated state tax plus Mukilteo’s flat 0.50% local tax, calculated at closing and paid before recording. (DOR REET overview)
What is the REET on an $800,000 Mukilteo home?
- Approximately $13,300 including the $5 tech fee, based on current state brackets plus the 0.50% Mukilteo local tax.
Who files and pays REET in Snohomish County?
- The seller is normally responsible; escrow/title usually files the REET affidavit and remits payment to the county treasurer at closing. (DOR REET overview)
What happens if REET is paid late?
- Penalties are 5% after one month, 10% after two months, and 20% after three months, plus monthly interest from the sale date. (DOR REET overview)
Does Washington’s capital gains tax apply to my Mukilteo home sale?
- No; the state’s capital gains excise tax excludes sales of real property, though you should confirm your situation with a tax professional. (Washington regulation)
Which location code should I use for Mukilteo?
- Use location code 3114 and the 0.50% local rate when completing the REET affidavit. (DOR local rate table)
