Selling your Camas home and wondering how Washington’s Real Estate Excise Tax fits into your closing costs? You’re not alone. REET can feel confusing, especially when you’re trying to forecast your net proceeds. In this guide, you’ll get a clear, plain-English overview of who typically pays, how the tax is calculated, what to check locally in Camas and Clark County, and how to plan for closing. Let’s dive in.
What is Washington REET?
Real Estate Excise Tax (REET) is a tax on the transfer of real property in Washington. It is assessed on the selling price of the property at the time of sale.
The Washington State Department of Revenue administers REET and sets the rules and forms. Counties and cities may also have local add-on REETs, which are combined with the state rate to form the total rate you’ll pay at closing.
Who pays REET in Camas?
In Washington, the seller typically pays REET as part of closing costs. That said, payment is negotiable between buyer and seller in the purchase contract. If you agree that a buyer will pay some or all of REET, make sure the contract language is explicit.
Title or escrow usually collects REET at closing and remits it shortly after. If closing is arranged without a title company, the responsible party still must file the REET return and pay on time to avoid penalties and interest.
How REET is calculated
At its simplest, REET is calculated using this formula:
- REET amount = Selling price × Combined REET rate
- Combined REET rate = State rate + any applicable Clark County and City of Camas local rates
Because local add-ons can change, your combined rate depends on the date of sale and where the property is located.
What counts in the selling price
Most transfers of real property are subject to REET, including homes, land, and condos. If your sale includes personal property (like furnishings or appliances not considered part of the real estate), you may allocate part of the price to nontaxable items. Any allocation must be factual, reasonable, and well documented to withstand review.
Reporting and payment at closing
- A REET return must be filed and the tax paid according to the Washington Department of Revenue’s instructions.
- Title/escrow typically handles filing and payment at closing.
- Late filing or payment can trigger penalties and interest.
Camas and Clark County specifics
Your total REET bill equals the state REET rate plus any local REETs in effect in Clark County and the City of Camas on your closing date. Local rates may fund community initiatives and can change over time. An incorrect assumption about the local add-on can throw off your net proceeds.
Before you list or accept an offer, verify the combined rate for your closing date with one or more of the following:
- Washington State Department of Revenue (REET information and filing guidance)
- Clark County Treasurer (local rate details and procedures)
- City of Camas finance or municipal code references
- Your title or escrow company (they can estimate and collect the correct combined rate)
Hypothetical REET examples
These examples are for illustration only. Always verify the actual combined rate for your Camas property and closing date before relying on any estimate.
- Example A — hypothetical combined rate 1.00%:
- Sale price = $500,000 → REET = $500,000 × 1.00% = $5,000
- Example B — hypothetical combined rate 1.50%:
- Sale price = $750,000 → REET = $750,000 × 1.50% = $11,250
- Example C — hypothetical combined rate 2.00%:
- Sale price = $1,200,000 → REET = $1,200,000 × 2.00% = $24,000
Seller checklist for a Camas listing
Use this quick list to plan for REET early and avoid surprises at closing.
- Ask your listing agent or title company for a REET estimate and include it in your net-proceeds worksheet.
- Confirm who will pay REET in your purchase agreement and ensure the contract reflects the agreement.
- If you believe an exemption might apply, raise it early and gather required documentation. Get confirmation from your title/escrow officer or the Department of Revenue.
- Budget for REET as part of your closing costs when estimating your net.
- Confirm who will file the REET return and remit payment. Title companies typically do this; clarify which party will sign the return.
- Keep all documentation after closing, including the REET return, proof of payment, and closing statement.
Exemptions and special cases
Some transfers are treated differently under REET rules. Common categories include:
- Transfers without a seller, such as gifts or transfers by will
- Certain transfers between related entities when beneficial ownership does not change
- Transfers involving government or qualifying non-profit programs
- Sales subject to specific statutory exemptions that may change over time
Exemptions require specific documentation and the correct forms. Misclaiming an exemption can lead to audits, penalties, and back taxes. If you plan to claim an exemption, obtain written confirmation from your closing agent or the Department of Revenue.
Penalties and audits: what to avoid
- Late filing or payment can result in penalties and interest, which increase over time.
- Misallocating a large portion of the sale price to personal property without solid documentation can trigger an audit.
- If an exemption is claimed incorrectly, the seller may be liable for the tax plus penalties. If your contract assigned REET to the buyer, incorrect reporting can still affect both parties.
Planning your net proceeds
Estimating your net proceeds is easier when you follow a simple process:
- Confirm the combined REET rate that applies to your Camas property on your closing date (state plus any Clark County/City of Camas components).
- Multiply your sale price by that combined rate to estimate your REET amount.
- Subtract REET and other closing costs from your sale price to calculate projected net proceeds.
Your title or escrow team can help you verify the rate, complete the REET return, and ensure the correct amount is collected at closing.
A knowledgeable local listing agent can also keep you ahead of paperwork and numbers, so you can focus on prepping your home and negotiating the strongest terms.
Ready to list or want a precise REET estimate based on your timeline? Reach out to the team that knows Clark County inside and out. Connect with Parker Home Group for guidance, premium listing marketing, and clear next steps.
Request Your Free Home Valuation with Parker Home Group
FAQs
Who pays REET in a Washington home sale?
- In standard Washington practice, the seller typically pays REET at closing, though payment is negotiable and should be spelled out in the purchase contract.
Does REET affect my capital gains tax in Camas?
- No. REET is a transfer tax separate from federal or state income tax. Capital gains are calculated independently.
How is REET collected at closing in Clark County?
- Title or escrow usually withholds the REET amount from the seller’s proceeds, files the return, and remits the tax shortly after closing.
Can a buyer agree to pay REET in Washington?
- Yes. REET is negotiable. If the buyer will pay, the purchase contract must state that clearly.
Can I reduce REET by allocating value to personal property?
- Sometimes. Allocations must be factual, reasonable, and documented. Overstating personal property can trigger audits and assessments.
What happens if REET is filed or paid late?
- The Department of Revenue may apply penalties and interest, which grow with the length of delinquency.
