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Mortgage Calculator Washington
Washington's annual property tax is genuinely moderate, and there's no state income tax at all. The line item that surprises people is a one-time tax paid at sale — and it's steeper than most states charge, on a sliding scale.
Estimate your Washington mortgage payment
Updates liveIllustrative estimate only, ongoing home costs. Sellers should separately budget for the graduated Real Estate Excise Tax at closing — see below. Not a loan offer or financial advice.
Diagram: only the portion of a sale price within each tier is taxed at that tier's rate — the whole price isn't taxed at the top rate.
Who checks this calculator
Understanding the Washington mortgage market
What makes a Washington mortgage different
No state income tax at all is a genuine plus for take-home pay. The tax quirk worth understanding before buying or selling is a graduated tax on the sale itself — different from anything most other states charge. This mortgage calculator Washington buyers use walks through both.
No income tax, moderate property tax
Washington has no general state income tax, a real and significant advantage on take-home pay for anyone moving from a state that does. Property tax, meanwhile, is fairly moderate — the statewide effective rate typically runs around 0.76% to 0.88%, close to or slightly below the national average, per the Washington Department of Revenue, funding schools, county government, fire districts and other local services that many states support partly through income tax revenue instead.
The 1% annual levy growth cap
Washington law generally limits how much most local taxing districts can increase their regular property tax levy — the total amount collected — year over year to 1%, plus an allowance for new construction added to the tax base. Voter-approved special levies aren't subject to that same cap, so a district can still see faster growth if voters specifically approve additional levies, but the baseline regular levy growth is meaningfully restrained compared to many other states.
| Sale price portion | State REET rate |
|---|---|
| Up to $525,000 | 1.10% |
| $525,001 – $1,525,000 | 1.28% |
| $1,525,001 – $3,025,000 | 2.75% |
| Above $3,025,000 | 3.00% |
The Real Estate Excise Tax, explained
REET is a tax on the sale price of real property in Washington, typically paid by the seller at closing, and it's calculated on the full selling price — not on any profit or gain, which makes it fundamentally different from a capital gains tax. Nearly all sales of real property in the state are subject to it, with specific carve-outs for things like gifts, inheritance, and transfers between spouses in a divorce.
How the graduated tiers actually work
REET's structure is truly progressive, similar in concept to how income tax brackets work — only the portion of a sale price that falls within each tier gets taxed at that tier's rate, not the entire sale price at whatever the top applicable rate happens to be. A $700,000 home sale, for instance, pays 1.10% on the first $525,000 and 1.28% only on the remaining $175,000, not 1.28% on the full $700,000. This mortgage calculator Washington covers the buyer's monthly side; sellers need to run this math separately.
Local REET surcharges on top
Cities and counties can add their own local REET rate on top of the state's graduated structure, commonly in the 0.25% to 0.50% range, and some jurisdictions layer additional surcharges further still — a $1 million sale in Seattle, for example, can carry a combined REET bill in the range of $14,000 once state and local portions are added together. This local variation is exactly why confirming the specific combined rate for a target property's location matters before estimating total closing costs.
The capital gains tax — and why it doesn't apply here
Washington does levy a capital gains excise tax on high earners, currently applying to gains above $1 million with rates that were increased in recent years, but real estate transactions are specifically and completely excluded from this tax regardless of the gain involved. Homeowners selling property in Washington pay REET based on sale price, not this separate capital gains tax, which only applies to other types of investment gains.
The senior property tax exemption
Washington offers a property tax exemption program for homeowners aged 61 and older, or those retired due to disability, with benefits scaled by household income and varying by county. Depending on the income tier, eligible homeowners can receive a full or partial exemption from certain excess levies and have their assessed value frozen for tax purposes, meaningfully reducing or stabilizing what they owe going forward.
A worked example, start to finish. Say a buyer purchases a $620,000 home in Washington with a property tax rate of 0.82%. With a 10% down payment, they're financing $558,000 at 6.6% over 30 years, giving a principal and interest payment of roughly $3,563. Property tax adds about $424 a month, and with typical insurance, the full ongoing monthly payment comes to around $4,057.
The seller of that same $620,000 home, separately, owes REET at closing: 1.10% on the first $525,000 ($5,775) plus 1.28% on the remaining $95,000 ($1,216), for a state REET total of roughly $6,991 — before any local surcharge is added on top. This is a one-time cost at the point of sale, not an ongoing monthly expense, but it's a genuinely significant number worth budgeting for well before listing a Washington property.
How to use this mortgage calculator Washington tool
Enter the home price and down payment you're working with, along with your expected interest rate and loan term. The property tax rate defaults to a typical statewide figure of 0.82% — adjust it if you know your specific county's actual rate. Add an estimated annual insurance premium, and this mortgage calculator Washington shows your full estimated monthly payment. If you're selling in Washington, remember REET is a separate, one-time cost at closing, not reflected in this ongoing monthly estimate.
Common mistakes to avoid
- Confusing REET with a capital gains tax. REET is based on full sale price, not profit, and applies regardless of gain.
- Applying the top REET rate to the entire sale price. Only the portion within each tier gets that tier's rate.
- Forgetting local REET surcharges. State rates are only part of the picture — cities and counties add more.
- Assuming the 1% levy cap limits your individual bill. It limits a district's total collection growth, not necessarily any one property's bill.
- Not checking senior exemption eligibility. Income limits and benefits vary quite a bit by county.
Quick glossary
- Real Estate Excise Tax (REET)
- A graduated Washington state tax on the sale price of real property, typically paid by the seller at closing.
- Graduated rate structure
- A tax system where different portions of a value are taxed at different rates, similar to income tax brackets.
- 1% levy growth cap
- A Washington law limiting most local taxing districts' regular property tax levy growth to 1% annually, plus new construction.
- Capital gains excise tax
- A separate Washington tax on high earners' investment gains above a threshold, which specifically excludes real estate sales.
- Local REET surcharge
- An additional real estate excise tax rate that cities and counties can add on top of the state's graduated rate.
The bottom line
Washington's ongoing homeownership costs — no income tax, moderate property tax — are truly favorable by national standards. The number worth planning for separately is REET at the point of sale, which climbs in tiers and can add up to a real five-figure cost on a higher-value property. Budget for both pieces honestly, and this mortgage calculator Washington gives a realistic starting point for the monthly side of homeownership here.
Common questions