Understanding real estate transfer taxes is essential if you’re selling your home in Washington State. Transfer taxes, also known as the real estate excise tax in Washington state, are fees imposed by the state, county, or city governments when property ownership is transferred from one party to another. We’ll cover who is responsible for paying these taxes, the different types of transfer taxes you might encounter, and what you can expect to pay when selling your property. According to the Federal Trade Commission, transfer taxes are state or local taxes due when property ownership is transferred from one party to another. When you transfer the title of your home—the official legal right to the property—to a buyer, a tax is levied by the government on this transaction. The amount you owe in transfer taxes depends on where your property is located, as state, county, and city regulations vary. These taxes are intended to generate revenue for the government, similar to other types of taxes. Understanding the specifics of transfer taxes in Washington State will help you prepare for the financial aspects of selling your home. The ultimate responsibility of who pays for a state, city, or county’s transfer tax will vary based on location. In Washington State, it is referred to as a real estate excise tax (REET), and the seller is responsible for it; however, if the tax is not paid, it becomes the buyer’s responsibility. Unpaid taxes can also become a lien on the property in question, so it’s important to work this out in your seller agreement and, if you are the seller, ensure that the tax is paid promptly.What are transfer taxes?
Who pays for transfer taxes?
