How does Washington's real estate excise tax work when selling in Spokane County?

Washington’s real estate excise tax, or REET, is a seller-paid transfer tax due when a Spokane County property changes hands. It’s graduated — the rate climbs in tiers as the sale price rises, and the higher rates apply only to the portion of the price above each threshold, not the whole amount. There’s also a local REET layered on top of the state portion. The tax is collected at closing, and the deed can’t record until a Real Estate Excise Tax Affidavit is filed with the Spokane County Treasurer.

How the tax actually gets calculated and paid

REET is based on the full selling price, not your equity or your gain. A few mechanics worth knowing:

• It’s graduated by price tier. Lower-priced sales pay a lower effective rate; higher-priced sales pay progressively more on the amounts above each threshold. The thresholds and rates are adjusted over time, so check the Washington Department of Revenue for the current schedule rather than relying on an old closing statement or a blog post.
• The seller pays. It comes out of your proceeds on the settlement statement, alongside commissions and title fees. Buyers don’t pay REET, though a buyer can become liable if it goes unpaid.
• Escrow handles the math. Your closing agent calculates the tax, prepares the affidavit, and remits payment when the deed records. You sign; you don’t file anything yourself in a standard sale.

For context on what that means in dollars: the median asking price in Spokane sits at $435,995 as of August 2026, with Spokane Valley at $464,950 and Cheney at $449,900. Run the current DOR rate schedule against your expected sale price early — it’s one of the larger seller costs and it surprises people who moved here from states without a transfer tax.

The affidavit requirement

Every transfer in Spokane County needs a Real Estate Excise Tax Affidavit, even many transfers where no tax is owed — gifts, inheritances, and certain transfers between related entities can qualify for exemptions, but you still document the transfer and claim the exemption on the affidavit. The county treasurer reviews it, collects any tax due, and stamps it before the auditor records the deed. An incomplete or missing affidavit stops a closing cold. If you’re doing anything non-standard — a quitclaim to a family member, moving property into an LLC or trust — talk to a CPA or real estate attorney first, because exemption rules are specific and penalties apply to underpayment.

Why this matters at the state line

Idaho has no equivalent transfer tax. Sell a comparable home in Kootenai County and this line simply isn’t on the settlement statement. That said, REET is one piece of a larger picture — Washington has no personal income tax, and the property tax structures differ too. The Washington vs. Idaho tax overview and the property tax comparison walk through the rest of the ledger. We write both Washington and Idaho contracts every month, so building REET into a Spokane County net-proceeds estimate — or explaining its absence on an Idaho sale — is routine for us.

This is general information, not tax advice; your CPA should confirm how a sale fits your situation. Current listing and pricing conditions are in our market reports.

If you’re planning a sale and want a net-proceeds estimate that includes REET, reach out and we’ll run the numbers with you.