Selling in Bothell and wondering how Real Estate Excise Tax affects your net at closing? You’re not alone. REET shows up as a separate line item on your settlement statement, and it can be a meaningful part of your cost to sell. In this guide, you’ll learn what REET is, how Washington’s graduated rates work, how Bothell’s local add-ons stack on top, and a simple way to estimate your net proceeds. Let’s dive in.
What REET is and why it matters
Real Estate Excise Tax is a tax on the sale of real property in Washington State. It’s calculated as a percentage of the sale price and is typically paid at closing. In practice the seller usually pays, but it can be negotiated in the purchase and sale agreement.
Your total REET for a Bothell sale includes:
- The Washington State REET calculated with graduated brackets.
- Any Bothell city REET add-on(s) that apply within city limits.
- Any applicable exemptions or special rules defined by the state.
Because REET reduces your net proceeds, getting the estimate right helps you price confidently and avoid surprises at closing.
How Washington’s graduated REET works
Washington uses a graduated or tiered structure. Different portions of your sale price fall into different rate brackets, and each portion is taxed at that bracket’s rate. Your effective rate is the weighted average across the brackets.
To compute your state REET amount:
- Get the current bracket thresholds and rates from the Washington Department of Revenue. You can start with the Department of Revenue’s Real Estate Excise Tax pages on the DOR website and navigate to the current REET rate tables.
- For each bracket, figure out the portion of your sale price that falls into it.
- Multiply each portion by the bracket’s rate.
- Add the results to get the state REET due.
For current rules and the live rate tables, review the Washington Department of Revenue’s REET guidance on the DOR site at the Department of Revenue homepage.
Bothell’s local REET add-ons
Washington law allows cities to impose local REET add-ons for specific uses. Local REET is generally a single percentage applied to the full sale price. It is added on top of the state REET.
If your property is inside Bothell city limits, you will owe the state REET plus any Bothell REET in effect on your closing date. Some cities adopt multiple local REETs, so confirm whether Bothell has one or more percentages and note effective dates.
- To verify Bothell’s current local REET percentage(s) and effective dates, check the City of Bothell’s official municipal code or ordinances on the City of Bothell website.
Step-by-step: Estimate your net proceeds
Follow this simple workflow to build a reliable estimate before you list.
Step 1: Pull the state rate table
Visit the Washington Department of Revenue and locate the current REET bracket thresholds and rates. Note the date you checked them.
Step 2: Confirm Bothell’s local REET
Check the City of Bothell’s municipal code or city ordinances for the current local REET percentage(s) that apply to sales inside city limits. Note effective dates in case your closing spans a change.
Step 3: Calculate the state REET
Apply the graduated calculation. For each bracket, tax only the portion of your price that falls within that bracket. Sum the bracket amounts for your state total.
Step 4: Add Bothell’s local REET
Multiply your full sale price by Bothell’s local REET percentage(s). Add that to your state REET total.
Step 5: Add other closing costs
Common seller costs may include:
- Title and escrow fees
- Real estate commissions
- Payoff of mortgage and any liens
- Prorated property taxes and HOA dues
- Any negotiated credits or fees
Step 6: Build your net sheet
Use this quick template to keep all numbers in one place. Label your figures as estimates and keep a copy of your sources.
- Sale price: $________
- State REET calculated by bracket: $________
- Bothell local REET at %: $____
- Total REET due: $________
- Other closing costs: $________
- Estimated net to seller before mortgage payoff: Sale price − Total REET − Other closing costs = $________
Tip: Add a small contingency for rounding or filing differences if you want extra cushion.
Filing, payment, and timing in King County
REET is reported on an excise tax affidavit and typically collected by your escrow or title company at closing. It is then remitted to the county and the state. Processes and timing can vary by county and transaction details, so confirm the current filing instructions with King County using the King County government website.
Keep copies of your excise tax affidavit and any documentation supporting exemptions. These records can matter for future audits or questions about your sale.
Negotiation and planning tips
- It is common for sellers to pay REET, but it can be negotiated in the purchase and sale agreement. Discuss customary practice with your agent.
- Confirm whether any rate changes are scheduled before your target closing date. Effective dates control what you owe at closing.
- Ask your escrow team for a REET estimate when you accept an offer. A clear net sheet prevents surprises.
Exemptions and special cases
Washington law includes exemptions for certain transfers, such as some estate, court-ordered, or entity-related transactions. Exemptions are fact-specific. If your sale might involve an exemption or a complex structure, review the state guidance on the DOR site and consider consulting a qualified tax professional.
Ready to walk through your numbers?
If you want a precise net sheet tailored to your Bothell property and timeline, reach out for a quick strategy call. We will align your pricing, staging, and timing with a clear estimate of REET and other costs so you can sell with confidence. Request your free home valuation and seller strategy with Unknown Company.
Helpful official resources
- Washington Department of Revenue REET overview and rate tables: see the Department of Revenue homepage.
- City of Bothell municipal code and ordinances related to REET: start at the City of Bothell website.
- King County filing, recording, and payment procedures: visit the King County government website.
Note: Always verify the current state brackets and Bothell local percentages on the official pages before finalizing your numbers.
FAQs
Who pays REET on a Bothell home sale in King County?
- In practice the seller typically pays REET at closing, but it can be negotiated in the purchase and sale agreement.
How is REET different from property taxes?
- REET is a one-time tax tied to the sale of real property, while property taxes are ongoing annual taxes based on assessed value.
When is REET due and who files it in King County?
- Your escrow or title company usually prepares the excise tax affidavit, collects REET at closing, and remits it to the county and state per current procedures.
What happens if REET rates change before I close?
- The effective date of any rate change controls what you owe at closing, so check the state and Bothell pages for updates as you approach your closing date.
Are there exemptions for selling my primary residence?
- Some transfers qualify for exemptions, but there is no automatic primary residence exemption; review DOR guidance or consult a tax professional for your situation.
How do I estimate REET for a Bothell condo or townhome?
- Use the same steps: apply the state graduated brackets, add Bothell’s local percentage(s), then include other closing costs to build your net sheet.
