Puget Sound region
Seattle, WA
Washington's graduated real estate excise tax makes expensive homes costly to transfer, while state middle-housing law now lets most Seattle residential lots hold several homes. A new statewide rent cap and a pending citywide upzone mean the rules for investors are still moving.
💡 Upside tip
Model the lot under the Neighborhood Residential zoning in effect since January 21, 2026 (HB 1110), which allows several homes per lot, rather than under the old single-family rules. Then check the SDCI GIS map for steep-slope, landslide or liquefaction critical areas, which can cut the buildable area.
Offers & competition
Competitive listings have historically used an offer review date with seller pre-inspections. The standard NWMLS inspection contingency (Form 35) defaults to 10 days, and contingencies have come back as the market cooled from 2023 to 2026.
Closing & who pays
Escrow companies and Limited Practice Officers (LPOs) close sales; no attorney is required. The excise tax is legally owed by the seller and becomes a lien on the property if unpaid.
Transfer taxes
State REET is marginal through 2026: 1.10% up to $525,000, 1.28% to $1,525,000, 2.75% to $3,025,000 and 3.00% above, plus a local REET of typically 0.25% to 0.5%. From January 1, 2027 the brackets rise to $551,000, $1,551,000 and $3,051,000, with rates unchanged.
Seller disclosures
The seller must deliver Form 17 within 5 business days of mutual acceptance, and the buyer then has 3 business days to approve it or rescind. A buyer may rescind over Form 17 misstatements even when the seller did not know they were wrong.
What you can build
Council Bill 120993 rewrote Neighborhood Residential zones to comply with HB 1110, effective January 21, 2026, including 3 to 4 story stacked flats citywide; state law HB 1337 also allows 2 ADUs per lot with no owner-occupancy rule. The larger Centers and Corridors upzone (up to about 6 stories in neighborhood centers) is held up by an environmental (SEPA) appeal, with council action expected in early 2027.
Permits & records
Permit history is on the Seattle Services Portal and zoning on the SDCI GIS map. Detached ADUs built from pre-approved plans reportedly clear review in about 1 to 6 weeks versus 4 to 12 weeks for custom designs; SDCI publishes an official permit timelines report and launched permit review improvements in 2026.
Property tax
Property is taxed on its assessed market value each year, and the limit is on total levy growth (1% a year), not on a home's value, so the bill follows the market. Seattle's effective rate is roughly 0.8% to 1.0%.
Rent rules
State law HB 1217 (2025) caps annual increases at 7% plus CPI or 10%, whichever is lower; the 2026 cap is 9.683%. Buildings newer than 12 years are exempt, no increase is allowed in the first 12 months of a tenancy, and 90 days' written notice is required.
Key risks
Seismic risk is central: unreinforced masonry buildings, liquefaction in areas such as SODO and the Duwamish, and the long-term Cascadia earthquake risk. Steep-slope and landslide critical areas also limit where and how you can build.
⚠ Still verifying
The 2027 REET thresholds come from a law firm; confirm with the Department of Revenue. A proposed extra 1% tax above $3.025M (HB 2276) is treated as not enacted. Whether single-family homes are exempt from the state rent cap, the 2027 cap, and pending 2026 changes to the Form 17 statute are unconfirmed. ADU review times conflict across sources, and Seattle tax rates and hazard rules come from background knowledge.
Official sources
Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.