Costs of Selling Land in Washington
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Washington at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| State REET | 1.1% up to $525,000; 1.28%, 2.75% and 3% above that (2023 to 2026) | Seller |
| Local REET | Varies by city and county | Seller |
| State technology fee | $5 per transfer | Seller |
| Recording fees | Set by the county recorder; charged per document or page | Buyer usually records the deed; seller pays to record lien releases |
| Title search and owner's title insurance | Priced by the title company or attorney; varies with sale price | Set by the contract and local custom |
| Prorated property taxes | Your share of the current year's tax, up to the closing date | Seller for the days owned; unpaid back taxes are paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% of a long-term gain (land held over 1 year); short-term gains taxed as ordinary income; 3.8% NIIT may apply at higher incomes | Seller, on the gain only |
| Washington capital gains tax | Real estate is exempt; Washington has no personal income tax | n/a |
Example: Seller Costs on a $25,000 Land Sale
- State REET at 1.1%
- $275
- State technology fee
- $5
- Total seller transfer cost before local REET
- $280
1.1% x $25,000 = $275, plus the $5 technology fee = $280. Add your local REET rate, which varies by location. Recording, title, escrow and prorated taxes are not included.
Selling Costs in Washington: What to Know
Washington's main seller cost is the real estate excise tax, or REET. The state rate rises with the sale price, and cities and counties add a local rate. This page lists each cost of selling land in Washington, who pays it, and a $25,000 example.
Most of these costs come out of your proceeds at closing, so you see them on the settlement statement, not as bills. The one cost that comes later is income tax on any gain, which you report on your return. This page is general information, not legal or tax advice. Rates change, so confirm them with the office named here or a tax professional before you rely on them.
Washington real estate excise tax (REET)
For sales from January 1, 2023 through December 31, 2026, the state REET is graduated: 1.1 percent up to $525,000, 1.28 percent from $525,000.01 to $1,525,000, 2.75 percent from $1,525,000.01 to $3,025,000, and 3 percent above that (WA Department of Revenue). The thresholds are adjusted every four years; new ones start January 1, 2027.
Land classified as agricultural land or timberland pays a flat 1.28 percent state rate, whatever the price.
Local REET is added on top and varies by city and county. Ask your county treasurer for the local rate. The seller usually pays REET, and if the seller does not pay, the buyer is responsible. A $5 state technology fee applies to each transfer.
Who pays what in Washington
In Washington the seller pays REET by custom and by law. The buyer usually pays to record the deed. Escrow fees are often split, and the contract says who buys the owner's title policy.
- Seller: the state transfer tax where the law puts it on the seller, any agent commission, payoff of liens and back taxes, and the seller's share of the year's property tax.
- Buyer: recording the new deed, any lender fees, and the costs the contract assigns to the buyer.
- Either side: title insurance, settlement or escrow fees, and survey costs, as the contract says.
Attorney or title company: who closes a land sale in Washington
Most Washington land sales close through an escrow company or a title company's escrow department. The escrow officer files the REET affidavit, pays the tax, records the deed, pays off liens and back taxes, and pays you. You can hire a lawyer to review the deal, which helps with heirs, estates or title problems.
Capital gains tax when you sell land in Washington
Federal tax applies to the gain, not to the sale price. The gain is roughly the sale price minus what you paid for the land, minus selling costs and the cost of lasting improvements. If you held the land for more than one year, the gain is long term. If you held it one year or less, it is short term and is taxed like wages (IRS Topic 409).
Long-term gains get federal rates of 0, 15 or 20 percent, depending on your taxable income. For 2025, a single filer paid 0 percent on long-term gains if taxable income was $48,350 or less. Higher earners may also owe the 3.8 percent net investment income tax when modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers (IRS Topic 559).
Washington has no personal income tax. Its capital gains tax does not apply to real estate, which is listed as an exempt asset (WA Department of Revenue). So a land sale owes REET at closing but no Washington capital gains tax. Federal tax still applies.
Recording, title and property tax at closing
Recording fees are set by law and charged by the county office that records deeds. The buyer usually pays to record the new deed. If a mortgage or lien is paid off at closing, the release is recorded too, and the seller usually pays for that.
A title search shows who owns the land and what liens or back taxes sit on it. Owner's title insurance protects the buyer against title problems found later. The price comes from the title company or attorney, and the contract says who pays.
Property tax is split by date. You pay for the part of the year you owned the land, and the buyer pays for the rest. Any back taxes are paid from your proceeds before you get the balance.
How selling to a cash buyer changes the costs
A cash sale has no lender, so there are no loan fees, no appraisal and no financing delays. When you sell to EasyLotBuyer, we pay the closing costs, and you pay no fees or commissions. We can close in as few as 7 days, and we send a cash offer within 24 hours.
We also buy land with back taxes, liens, title problems or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale. Tax on your gain is still yours to report, so keep your closing statement for your return. Get a cash offer for your Washington land.
Sources
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Washington
How much is the Washington real estate excise tax on land?
The state rate is 1.1 percent on a sale of $525,000 or less, through 2026. Agricultural land and timberland pay a flat 1.28 percent. Local REET is added on top.
Does Washington's capital gains tax apply to selling land?
No. Real estate is exempt from Washington's capital gains tax.
What closing costs does a seller pay in Washington?
Usually the real estate excise tax (1.1 percent state rate up to $525,000 plus local REET) and a $5 technology fee, plus payoff of any liens or back taxes and the seller's share of the year's property tax. Title and closing fees are split as the contract says.
Do I owe capital gains tax when I sell land in Washington?
Only federal tax. Real estate is exempt from Washington's capital gains tax, and the state has no personal income tax. You do pay REET at closing.
Who pays closing costs when I sell land for cash?
It depends on the contract. When you sell to EasyLotBuyer, we pay the closing costs and you pay no fees or commissions. Back taxes, if any, are paid from the sale at closing.
Are back taxes paid at closing?
Yes. The closing agent pays delinquent property taxes and recorded liens from the sale proceeds, and you receive the balance. You can sell land that has back taxes.