A $1 million offer does not tell a Washington seller how much money will be available for the next purchase. Start with a written estimate of proceeds after the mortgage payoff and selling expenses.
One expense that belongs in the first estimate is real estate excise tax, usually shortened to REET. Under Washington law, the state tax is the seller’s obligation. Do not leave it out simply because the parties have not reached the closing stage.
A $1 million example
For an ordinary residential sale in 2026, the published state brackets apply different rates to different portions of the price. At a $1 million taxable selling price, the state calculation is:
| Portion of the price | Rate | State tax |
|---|---|---|
| First $525,000 | 1.10% | $5,775 |
| Remaining $475,000 | 1.28% | $6,080 |
| Total | $11,855 |
Using a hypothetical local rate of 0.50% adds $5,000, bringing the example to $16,855 before other selling expenses. The local rate here is an assumption, not a quote for a particular city or county. Ask escrow to confirm the property’s actual rate, taxable amount, fees, and any special treatment.
The higher state bracket does not apply to the entire sale price. Equally, the state amount alone is not the full estimate when a local tax applies.
Compare offers by proceeds and terms
Add the mortgage and other lien payoffs, agreed brokerage compensation, title and escrow expenses, tax prorations, and any repair allowance or closing-cost credit. Use the same assumptions when comparing offers.
Then consider the terms separately: financing, contingencies, timing, and anything that affects the likelihood or cost of closing. A higher price with additional concessions needs to be compared with the alternative after those concessions are included.
For a closing in 2027, have the tax calculation updated. The published state selling-price thresholds change on January 1, 2027. Do not carry a 2026 worksheet forward without checking it.
I would put the proceeds estimate beside the plan for the next purchase before accepting an offer. That connects the sale price to the amount you can actually use.
Plan a Washington sale with TopNetRealty.
Featured image: AI-generated editorial illustration, not a specific property.



