The Cost of Selling Your Home Is About to Change

Raise your hand if you are thinking of selling your home next year.

Keep your hand raised if you knew it may cost you more—or less—starting January, 2020.  Yup, that’s what I thought. This year, the Washington State excise tax is 1.28% of your sales price. Whatcom County adds on a fixed .5% for a grand total of what has always been 1.78% across the board.

Next year, however, the state excise tax goes to a tiered system. So you may pay more or less than 1.78% in real estate excise taxes, depending on how much your home sells for.

Here’s how it breaks down. Keep in mind this is a tiered system, so you only pay the given percentage on the portion of your sale amount that falls within each bracket.

Here are the new state rates starting in 2020:

1.1% if the selling price is equal to or less than $500,000

1.28% on the portion of the selling price that’s greater than $500,000 but equal to or less than $1.5 million

2.75% on the portion of the selling price that’s greater than $1.5 million but equal to or less than $3 million

3% on the portion of the selling price that’s greater than $3 million

The current 1.28% rate will continue to apply to timberland and agricultural land.

Now add Whatcom County’s .5% (half of one percent) onto each of these rates to come up with the true cost.

So, if your home would sell for $500,000 or under, you might gain a small advantage by waiting till the new year. If your home would sell for well over $500,000, you’ll pay more to sell your home next year. If that gives you heartburn, the Goldsteins have the remedy!

from BLISS & DAN GOLDSTEIN http://www.bellinghomes.com/the-cost-of-selling-your-home-is-about-to-change/