How Much Are Closing Costs in King County? Real Numbers for 2026 - 2027

If you're buying or selling a home in King County, "closing costs" can feel like a vague catch-all right up until you see a real closing statement and then it's suddenly very specific, and often larger than people expect. Here's a clear breakdown of what closing costs look like in King County, who typically pays for what, and how to estimate your own numbers before you get to the closing table.

What Are Closing Costs, Exactly?

Closing costs are the fees and taxes, separate from your down payment, that get paid to finalize a real estate transaction. They cover things like taxes owed to the county and state, title and escrow services, lender fees, insurance, and prorated expenses like property taxes and HOA dues. In King County, both buyers and sellers have their own set of closing costs, and they're not usually split evenly.

Seller Closing Costs in King County

For sellers, the single biggest line item is almost always the Real Estate Excise Tax (REET) - Washington's version of a transfer tax.

Real Estate Excise Tax (REET)

Washington uses a graduated state REET structure based on sale price:

• 1.10% on the portion of the sale price up to $525,000
• 1.28% on the portion between $525,001 and $1,525,000
• 2.75% on the portion between $1,525,001 and $3,025,000
• 3.00% on any portion above $3,025,000

On top of the state rate, King County and most of its cities, including Seattle, Bellevue, Kirkland, Renton, and Redmond, add a local REET of 0.50%. That means a typical King County home sale carries a combined excise tax rate in the neighborhood of 1.6% to 1.78% of the sale price for homes under $1.525 million, climbing higher as the price increases past that threshold.

REET is calculated on the full sale price, not on your profit, and it's due before the county will record the deed. In practice, escrow calculates it, collects it from your sale proceeds, and remits it to the county treasurer at closing. It's almost always the seller's obligation under Washington law, though buyer and seller can negotiate who ultimately covers it as part of the deal.

Other Common Seller Costs

• Real estate commissions — Typically the largest total cost of selling, though the percentage and structure are negotiable and vary by agreement.
• Title insurance (owner's policy) — Protects the buyer against title defects and is customarily paid by the seller in King County.
• Escrow fees — Usually split between buyer and seller, though this is negotiable.
• Recording fees — Charged by the King County Recorder's Office to record the deed and related documents.
• Prorated property taxes — Sellers reimburse buyers (or vice versa) for their share of property taxes for the portion of the year they owned the home.
• HOA transfer or resale certificate fees — If the property is in a homeowners association, expect a fee to transfer records and provide required disclosures.
• Outstanding liens or assessments — Any unpaid utility liens, local improvement district assessments, or judgments must be cleared at closing.

What About Capital Gains Tax?

Capital gains tax isn't technically a "closing cost" it's not collected by escrow at the table but it's one of the first questions sellers ask, and it belongs in the same conversation as REET.

Washington State Capital Gains Tax

Washington has a state-level capital gains tax, but it's aimed at investment assets like stocks and business interests, not real estate. Direct sales of real property are exempt from Washington's state capital gains tax. So if you're selling your King County home, condo, or even most investment real estate, the state capital gains tax simply doesn't apply to that sale. (Note: this exemption covers direct property sales, selling an entity that primarily holds real estate can be treated differently under the state's look-through rules, which is a conversation for a CPA.)

Federal Capital Gains Tax on a Home Sale

The federal government is a separate matter, and this is where most sellers' actual tax exposure lives. If the home was your primary residence, the IRS allows you to exclude a significant amount of profit from the sale under Section 121:

• Up to $250,000 in gain excluded for single filers
• Up to $500,000 in gain excluded for married couples filing jointly

To qualify, you generally need to have owned and lived in the home as your primary residence for at least 2 of the 5 years before the sale. Gains above the exclusion amount or gains on a second home, rental, or investment property that doesn't qualify for the exclusion, are typically subject to federal long-term capital gains tax rates if you owned the property for more than a year.

Because Washington has no state income tax and exempts real estate from its capital gains tax, a King County home sale that qualifies for the full federal exclusion often triggers no state or federal capital gains tax at all. Sellers with a large gain, a second property, or an investment property should still talk to a CPA or tax attorney before listing, the exclusion has specific ownership and use requirements, and the numbers can get more complex quickly.

Buyer Closing Costs in King County

Buyers generally pay a smaller share of total closing costs than sellers, but the list is longer because it includes loan-related fees.

• Lender fees — Origination fees, underwriting fees, and application fees vary significantly by lender.
• Appraisal fee — Required by most lenders to confirm the home's value supports the loan amount.
• Title insurance (lender's policy) — Protects the lender's interest in the property; typically a buyer expense.
• Escrow fees — Often split with the seller.
• Recording fees — For recording the deed and mortgage/deed of trust.
• Home inspection — Not required, but strongly recommended, and paid out of pocket by the buyer regardless of whether the deal closes.
• Prepaid items — Homeowners insurance premiums, prepaid interest, and property tax reserves for an escrow/impound account, if required by the lender.
• Homeowners insurance — The first year's premium is typically paid at or before closing.

As a rough planning number, buyers in King County can expect closing costs (excluding down payment) in the range of 2% to 4% of the purchase price, though this varies based on loan type, lender, and negotiated credits.

How Much Are Closing Costs in King County, Really?

Because so much of the cost structure scales with sale price, here's a simplified look at how seller-side REET alone can add up:

These figures reflect REET only, real commissions, title, escrow, and prorations are additional and will vary by transaction. This is exactly why a preliminary net sheet (for sellers) or a loan estimate (for buyers) matters well before you get anywhere near a signing table, the "sticker price" of a home and the actual cash that changes hands at closing can look very different.

Who Pays What? A Quick Reference

Every one of these is negotiable to some degree. In a buyer's market, sellers are sometimes asked to cover a portion of the buyer's closing costs as a concession; in a tight inventory market, that's less common.

Frequently Asked Questions

Are closing costs different in Seattle than the rest of King County? The state REET tiers apply countywide, but the local REET rate can differ by city. Seattle and most incorporated King County cities charge the full 0.50% local rate, while a small number of areas charge less — so it's worth confirming the rate for the specific city or unincorporated area where the property sits.

Can closing costs be rolled into the loan? Some loan programs allow certain costs to be financed or covered through a lender credit in exchange for a slightly higher interest rate. This is a conversation to have directly with your lender early in the process.

Do closing costs come out of the down payment? No. Closing costs are separate from the down payment and are typically paid via cashier's check or wire transfer to escrow, in addition to the funds needed for the down payment itself.

Is REET the same as property tax? No. REET is a one-time tax paid at the time of sale, based on the sale price. Property tax is an ongoing annual tax based on assessed value and is unrelated to REET, aside from being prorated between buyer and seller at closing.

Will I owe capital gains tax when I sell my King County home? Washington's state capital gains tax exempts direct real estate sales entirely. On the federal side, most primary-residence sellers owe nothing thanks to the Section 121 exclusion ($250,000 for single filers, $500,000 for married couples filing jointly), as long as ownership and residency requirements are met. Larger gains, second homes, and investment properties can still trigger federal tax, worth confirming with a CPA before you list.

The Bottom Line

Closing costs in King County are shaped heavily by Washington's graduated Real Estate Excise Tax, which can catch both first-time sellers and seasoned homeowners off guard if they haven't budgeted for it. Pair REET with title, escrow, commission, and lender fees, and it becomes clear why getting real numbers, not rules of thumb, matters before you list or make an offer.

If you're planning a move in King County and want an accurate, personalized estimate of what your closing costs will actually look like, reach out to RaeAnne Marcum for a detailed breakdown specific to your transaction.

This post is for general informational purposes and reflects Washington State REET rates and King County local rates as of 2026. Rates and fees are subject to change confirm current figures with your escrow company or the King County Department of Assessments before relying on them for financial planning.

RaeAnne Marcum | REAL BROKER | Team Lead | Seattle | Bellevue | Kirkland | 509.521.5323 | raeannemarcum.com