Real Estate Excise Tax in North Bend, Explained

Selling in North Bend and trying to figure out the real estate excise tax you will owe at closing? You are not alone. REET can feel confusing because Washington uses graduated state rates and cities layer on their own local rate. In this quick guide, you will learn what REET is, how North Bend’s local rate works, who usually pays, and how to estimate your cost with real numbers. Let’s dive in.

REET basics in Washington

Real estate excise tax is a one-time tax on the sale or transfer of real property in Washington. The state uses a tiered rate structure, and the Department of Revenue publishes current rules, forms, and a calculator. You can review the state structure in the Washington Department of Revenue’s overview of REET and use the DOR’s tax calculator to double-check any estimate before closing.

• State graduated rates used by DOR today:
  • Up to $525,000 at 1.10%
  • $525,000.01 to $1,525,000 at 1.28%
  • $1,525,000.01 to $3,025,000 at 2.75%
  • Above $3,025,000.01 at 3.00%
• Classified agricultural or timberland may be taxed at a flat 1.28% at the state level if it meets specific criteria.

North Bend local rate

In addition to the state portion, North Bend collects a local REET. The City’s schedule lists two parts, each 0.25%, for a combined 0.50% local rate that applies to the full sale price. See the City of North Bend Taxes, Rates and Fees schedule for the city ordinance summary, and you can confirm current local rates in the official DOR local REET rates table (REV 84-0013).

Calculate your REET step by step

Here is the simple process you can use for a North Bend sale:

1. Split your sale price into the state tiers shown above.
2. Multiply each portion by the matching state rate, then add the results.
3. Multiply your full sale price by North Bend’s 0.50% local rate.
4. Add the state tax and local tax. Then add the $5 state technology fee. If you are claiming an exemption, add a $5 affidavit processing fee.

For precise cents and any updates to thresholds, use the DOR’s tax calculator and compare your local rate to the REV 84-0013 table.

North Bend examples by price

These examples use the DOR tier thresholds and North Bend’s 0.50% local rate. They show the tax before title or recording charges and assume no exemption.

• $600,000 sale price

  • State: $6,735
  • Local: $3,000
  • Total REET: about $9,735, plus $5 tech fee = $9,740

• $1,000,000 sale price

  • State: $11,855
  • Local: $5,000
  • Total REET: about $16,855, plus $5 tech fee = $16,860

• $2,000,000 sale price

  • State: about $31,637.50
  • Local: $10,000
  • Total REET: about $41,637.50, plus $5 tech fee

• $5,000,000 sale price

  • State: about $119,075
  • Local: $25,000
  • Total REET: about $144,075, plus $5 tech fee

Who pays, when, and how

Sellers usually pay REET in Washington, although you can negotiate this in your purchase and sale agreement. If the tax is not paid, the buyer can be held liable, so it is important to confirm responsibility in writing. The DOR explains this custom and the buyer liability on its REET page.

For deeded transfers in North Bend, you file the REET affidavit and pay the tax to the King County Treasurer on the date of sale. The county and DOR process the paperwork together. You can find the latest REET forms and affidavits on the DOR’s forms page.

Late payments add penalties and interest, which increase after one, two, and three months. You can review timing, penalties, and other procedures in Washington Administrative Code 458-61A.

Common exemptions

Exemptions are narrow and require correct coding on the affidavit, and often a supplemental form. Examples include some transfers to public or nonprofit entities, certain low-income housing transfers, some inheritances, transfers in lieu of foreclosure if conditions are met, and specific related-party scenarios. Only one exemption can be claimed per transfer. For details and eligibility, see the DOR’s REET overview and related guidance.

If your property includes multiple parcels or mixed uses, you may need the predominant use worksheet. Classified agricultural or timberland can qualify for the flat 1.28% state rate if continuity requirements are met and the county assessor signs off.

Smart tips for sellers and buyers

• Budget early. Combine the state tiers with North Bend’s 0.50% local rate, and include the $5 tech fee. Use the DOR calculator to confirm your final estimate.
• Confirm who pays. Custom in Washington is seller pays, but it is negotiable. Put it in the contract and confirm with your escrow team.
• File on time. REET is due on the date of sale. Late filings trigger penalties and interest.
• Use official sources. Check the DOR REET page for rules and calculators, the City of North Bend schedule for the 0.50% local rate, and the DOR REV 84-0013 table for current local rates statewide.

Ready to plan your next move with confidence in your numbers? Reach out to Abby Quinto for local guidance, clear estimates, and a smooth sale strategy tailored to North Bend and the Eastside.

Abby Quinto

FAQs

What is the current REET rate in North Bend?

• North Bend adds a 0.50% local REET to Washington’s graduated state rates. You can verify the city’s local rate in the North Bend Taxes, Rates and Fees schedule and confirm statewide local rates in the DOR’s REV 84-0013 table.

Who usually pays REET in a North Bend home sale?

• In Washington, sellers usually pay REET, but it can be negotiated in the purchase agreement. If the tax is not paid, the buyer can be held liable, so confirm responsibility in writing.

How do I estimate REET for my North Bend sale?

• Apply the state tiers to your price, add 0.50% of the full price for North Bend’s local portion, then add the $5 technology fee. Use the DOR’s tax calculator to confirm your final estimate.

Where do I file and pay REET for a North Bend property?

• For a deeded transfer, file the REET affidavit and pay the tax to the King County Treasurer on the date of sale. Find current forms and instructions on the DOR’s forms and publications page.

Are there exemptions for owner-occupied homes in Washington?

• There is no blanket primary residence exemption. Some narrow exemptions apply, such as specific nonprofit or public transfers, certain inheritances, or low-income housing transactions. Review eligibility on the DOR REET page and include any required supplemental forms.