Who Pays the Real Estate Excise Tax When You Sell a Home in Washington, and Does Idaho Have One?

In Washington the seller normally pays the real estate excise tax at closing. The state rate is graduated from 1.1 percent to 3 percent depending on the sale price, and a small local rate is added on top. Idaho has no state real estate transfer tax, so a seller in Moscow pays nothing comparable. That single difference is one of the largest cost gaps between selling in Pullman and selling in Moscow.

The context on the Palouse

Pullman sits in Whitman County, Washington, and Moscow sits in Latah County, Idaho, eight miles apart. The two states treat a home sale very differently. Washington's real estate excise tax, usually called REET, is calculated on the selling price using tiers. Through December 31, 2026 the state portion is 1.1 percent on the part of the price up to $525,000, 1.28 percent on the part from $525,001 to $1,525,000, 2.75 percent from $1,525,001 to $3,025,000, and 3 percent above that. Cities and counties add a local REET, commonly a quarter to a half of one percent. On a $500,000 Pullman sale the state portion alone is $5,500 before the local rate. Idaho charges no transfer or excise tax on the sale itself, although Idaho sellers still pay title, escrow, and recording costs.

Practical steps

1. Confirm which side of the state line the property is on. The rules follow the property, not where you live.
2. For a Washington property, find the state tier for your expected price and apply it to the portion of the price in each tier, then add the local rate for Pullman and Whitman County, which the title company will quote.
3. Ask your agent or escrow for a written seller net sheet so the exact REET figure appears alongside commissions, title, and escrow.
4. For an Idaho property, budget zero for transfer tax but still plan for title insurance, escrow, and recording fees.
5. If your sale will close on or after January 1, 2027, use the new thresholds: 1.1 percent up to $551,000, 1.28 percent to $1,551,000, 2.75 percent to $3,051,000, and 3 percent above.

Common mistakes

• Assuming the buyer pays. In Washington the seller is responsible, and if the seller does not pay, the buyer becomes liable.
• Applying the top tier rate to the whole price. The rate is graduated and applies only to the portion of the price inside each tier.
• Forgetting the local REET on top of the state rate.
• Assuming Idaho works the same way. It has no state transfer tax at all.

Related questions

• What are typical seller closing costs in Pullman?
• How do the 2027 REET thresholds change what a Pullman seller pays?
• Does Idaho charge anything at closing that Washington does not?

A note on scope

This article is general information, not legal, tax, lending, insurance, inspection, or title advice. For those questions, work with the relevant licensed professional.

Next step

Before you list, ask for a seller net sheet built on your expected price so the excise tax is a known number rather than a surprise at closing. You can also contact Jordan.

About the author

Jordan Vorderbrueggen writes about buying and selling homes in Pullman, Moscow, and across the Palouse with Woodbridge Real Estate. Hard to Spell, Tough to Beat.