The Washington Department of Revenue's real estate excise tax page now leads with a new table. For sales starting January 1, 2027, the first bracket of the state tax runs to $551,000 instead of $525,000. Each higher bracket moves up by the same amount.
A South Hill homeowner who is weighing a fall listing against a January one could easily take that as a reason to wait. Run the numbers on a home priced like most South Hill homes and the reason mostly disappears. The largest change most sellers will see is $46.80.
What Moves on January 1
The state portion of the excise tax is graduated. Each slice of the selling price is taxed at its own rate, so a home is never taxed at a single rate on its full price. Here are the schedule in effect since January 1, 2023 and the one the Department of Revenue has published for sales beginning January 1, 2027.
| Rate on that slice of the price | Through December 31, 2026 | Beginning January 1, 2027 |
|---|---|---|
| 1.1% | Up to $525,000 | Up to $551,000 |
| 1.28% | $525,001 to $1,525,000 | $551,001 to $1,551,000 |
| 2.75% | $1,525,001 to $3,025,000 | $1,551,001 to $3,051,000 |
| 3.0% | Above $3,025,000 | Above $3,051,000 |
The rates themselves don't change. Only the dividing lines move, and every one of them moves by exactly $26,000. So for most sellers, the only thing January changes is that $26,000 of the price shifts from the 1.28% bracket down to the 1.1% bracket. That $26,000 at 0.18 percentage points comes to $46.80.
Why the Line Only Moved $26,000
The size of the shift comes from the statute itself. RCW 82.45.060 has the Department of Revenue revisit the lowest threshold every fourth year and adjust it, in the law's words, to reflect:
"the lesser of the growth of the consumer price index for shelter or five percent."
The higher thresholds then move by the same dollar amount as the lowest one. They don't grow by their own percentage.
The statute rounds adjusted thresholds to the nearest thousand. The move from $525,000 to $551,000 is an increase of just under 5%. A full 5% would be $26,250, which rounds to the same $551,000. Over four years, the first bracket can grow by about 5% at most, however much housing costs change in that time.
Two other details in the same section affect timing. New thresholds take effect on January 1 every fourth year, which puts the next scheduled change at January 1, 2031. Once an adjustment takes effect, the statute says no changes may be made to it.
This year's legislative session also touched the statute. HB 1983, Chapter 171, Laws of 2026 took effect June 11, 2026. It revised the definition of timberland to cover certain land sold to governmental entities and left the rates and the adjustment formula as they were. A homeowner selling a house on a city lot will not see a difference from it.
The Math at South Hill Price Points
Spokane REALTORS' report on September 2026 closings gives useful reference prices. The countywide median for single-family homes on less than an acre, including condos, was $419,995. Among the four subareas the report groups as its South region, medians ran from $399,999 to $555,000. The table below shows the state portion of the tax on each side of January 1 at those prices and a few above them.
| Sale price | State tax, 2026 schedule | State tax, 2027 schedule | Difference |
|---|---|---|---|
| $419,995 | $4,619.95 | $4,619.95 | $0 |
| $555,000 | $6,159.00 | $6,112.20 | $46.80 |
| $600,000 | $6,735.00 | $6,688.20 | $46.80 |
| $850,000 | $9,935.00 | $9,888.20 | $46.80 |
| $2,000,000 | $31,637.50 | $31,208.50 | $429.00 |
For a sale at or below $525,000, nothing changes. Between $525,000 and $551,000, the savings grow from zero up to $46.80. From $551,000 to $1,525,000, which covers most South Hill sales above the median, the difference stays at $46.80. Between $1,525,000 and $1,551,000, the 2.75% bracket shift starts to apply and the savings climb steadily, reaching $429 at $1,551,000. They hold at $429 above that point until the 3% bracket shift begins.
The Half Percent That Stays Put
The state tax is only part of the bill. Cities and counties add a local excise tax, and the Department of Revenue's local rate table, effective March 1, 2026, lists 0.50% for the City of Spokane. It lists the same 0.50% for unincorporated Spokane County.
The local tax applies to the full selling price at a flat rate, so January 1 doesn't affect it. On a $600,000 sale it comes to $3,000 in either year. Combined with the state tax, the total is $9,735 under the 2026 schedule and $9,688.20 under the 2027 one. Many South Hill addresses sit inside city limits, though some nearby parcels do not. The rates match today, but the parcel's actual jurisdiction is still the one to confirm on closing documents.
The Department of Revenue also spells out who pays. The seller usually pays the tax, but if the seller doesn't, the buyer is responsible, and unpaid tax can become a lien on the property. In practice, the seller is the one deciding whether $46.80 is worth a change of plans.
What Should Drive Fall or January Timing
Inventory, pricing and buyer activity shift from month to month, and those shifts can move a sale by far more than $46.80. The Spokane REALTORS Market Activity report for September 2026, which counts closings reported through October 7, shows where things stood as fall began:
- Closed sales: 536 in September 2026, up from 499 in September 2025.
- Median price: $419,995 for the month, up 1.2% from $415,000. The year-to-date median through September was $421,315, compared with $425,000 a year earlier.
- Inventory: 1,620 active listings at month's end, with 3.0 months of supply compared with 3.2 a year earlier.
- New construction: 90 new-home sales, compared with 92 a year earlier.
On those numbers, sales activity rose while the median stayed close to last year's. A seller who lists this fall or in January is deciding based on how many homes are competing for buyers that month and on where pricing stands. The excise tax schedule barely registers in that decision.
On South Hill, the factors that actually change a seller's net usually come up during the sale itself. Older homes can raise sewer lateral and disclosure questions, and the timing of an inspection can matter more than its findings. List price matters even more. Our South Hill pricing and prep guide covers what usually moves that number. A home valuation is a reasonable place to start, because the excise tax on a South Hill home depends on the selling price, and the selling price is the number a seller can influence most.
A Few Quick Answers
Does a sale dated in January instead of late December save money? The new schedule applies to sales beginning January 1, 2027, and the Department of Revenue ties the tax on a deeded transfer to the date of sale, regardless of the recording date. Your closing agent can confirm which date counts as the date of sale for your transaction. On the published 2027 schedule, a sale at or below $525,000 sees no difference, and savings top out at $46.80 for sales up to $1,525,000.
Did the 2026 legislative session change the rates? HB 1983 revised the timberland definition in the statute and kept the 1.1%, 1.28%, 2.75% and 3% rates and the four-year adjustment formula.
When do the brackets move again? The statute sets adjustments for January 1 every fourth year, so the next one after 2027 falls on January 1, 2031.
Is the local rate different for homes outside Spokane city limits? On the Department of Revenue's March 2026 table, the City of Spokane and unincorporated Spokane County are both at 0.50%.
This post is general information, not legal, tax or financial advice. Please confirm how the excise tax applies to your sale with your closing agent, attorney or tax professional.
If you're deciding whether to list your South Hill home this fall or after New Year's, Alejandro Ventura can go through the timing with you using your likely sale price and current inventory numbers, with the tax line shown to the dollar. Let's Connect.
