Real estate excise tax (REET) is a tax on the sale of real property. Do I have to file a tax return if I don't owe capital gains tax?Find out what taxes you may pay on the sale of a house in Washington state and how to avoid paying too much. The new WA Cap Gains Tax creates new wrinkles and provides new planning opportunities for individuals' estate plans. Washington state is one of only nine states in the country without a personal income tax, and property taxes are capped at 1 percent of a home's value. There is no state personal income tax in Washington. However, unlike other states with no personal income tax, Washington State now has a capital gains tax. If you elect to deduct state and local general sales taxes instead of income taxes, you must check the box on line 5a. Withholding Tax Forms for 2017 Filing Season (Tax Year 2016) (Please note the Office of Tax and Revenue is no longer producing and mailing booklets.
