"REET is due on the date of sale regardless of the date of recording." That line comes from the Washington Department of Revenue's real estate excise tax page. It matters more than usual this winter. On January 1, 2027, the brackets for the state part of the tax move up. If you're a South Hill seller with a closing in the last six weeks of 2026, the calendar day of your sale now decides which tax schedule applies.
The tax is a seller's cost by default. Under RCW 82.45.080, it's the seller's obligation. DOR adds that if the seller doesn't pay, the buyer becomes responsible, and unpaid tax can become a lien on the property. So it makes sense to ask whether pushing a closing into January pays off. At the prices homes sold for across Spokane's South region this fall, the honest answer is that it pays very little.
Every bracket moves up by the same $26,000
State law has DOR adjust the graduated REET thresholds every four years, and the rates stay the same. Here are the two schedules side by side:
| State REET rate | Sales through December 31, 2026 | Sales on or after January 1, 2027 |
|---|---|---|
| 1.1% | Portion up to $525,000 | Portion up to $551,000 |
| 1.28% | $525,000.01 to $1,525,000 | Over $551,000 to $1,551,000 |
| 2.75% | $1,525,000.01 to $3,025,000 | Over $1,551,000 to $3,051,000 |
| 3.0% | Over $3,025,000 | Over $3,051,000 |
The local portion is set separately. DOR's local REET rate table effective May 1, 2026 lists 0.50% for the City of Spokane and 0.50% for unincorporated Spokane County, and that rate applies to the full sale price. The January 1 threshold change covers only the graduated state brackets.
Every threshold rises by exactly $26,000, which limits what the change can be worth. A sale saves money only on the $26,000 slices that drop into a lower rate. Those slices are worth $46.80 at the first break, $382.20 at the second and $65 at the third. Added together, that's $494. Under the new schedule, no home sale in Washington saves more than that.
The math at South Hill price points
The latest market report from Spokane REALTORS covers September 2026 closings reported through October 7, 2026. It splits the county's South region into numbered MLS areas. The association's MLS reference manual labels area 211 "SE suburban Browns Mtn." and area 220 "SW urban S. of I-90." In September 2026, area 211 recorded 17 closed sales with a $555,000 median. Area 220 recorded 46 closed sales with a $495,000 median.
Area 211's median sits $4,000 above the new $551,000 line. That's close, but it's still a small number. Here's how the state tax works out at several South Hill price points:
| Sale price | State REET, closing in 2026 | State REET, closing in 2027 | Savings from waiting |
|---|---|---|---|
| $495,000 | $5,445.00 | $5,445.00 | $0 |
| $555,000 | $6,159.00 | $6,112.20 | $46.80 |
| $1,000,000 | $11,855.00 | $11,808.20 | $46.80 |
| $1,600,000 | $20,637.50 | $20,208.50 | $429.00 |
| $3,500,000 | $74,075.00 | $73,581.00 | $494.00 |
The local tax comes on top of these figures. At the 0.50% rate in DOR's current table, a $555,000 sale adds $2,775, for a combined $8,934 on a 2026 closing. If that local rate is still 0.50% in January, a 2027 closing would come to $8,887.20. DOR also charges a $5 state technology fee on every transfer.
The $495,000 row matters most to a lot of South Hill sellers. A sale at area 220's September median falls entirely within the 1.1% bracket under both schedules, so moving the closing date saves nothing at all. Most South Hill homes sell for less than $1.5 million, and for those sellers the January change is worth between zero and about the cost of a nice dinner out. The savings reach the hundreds of dollars only when a sale crosses the 2.75% bracket, which takes a price above $1,525,000.
The date that counts is the date of sale
The calendar matters, but in a different way than the headline suggests. DOR ties the tax to the date of sale, not the date the deed records at the county. A closing set for December 30 that slips to January 4 moves to the 2027 schedule. A closing that happens on December 31 stays on the 2026 schedule, even if the paperwork records afterward.
For most South Hill sales, the dollar amounts above mean the year-end date isn't worth negotiating over. A buyer asking to close December 29 instead of January 5 is asking a seller at area 211's median to give up $46.80. Agreeing to a buyer's preferred timeline often does more for a transaction than that.
Late payment costs more than picking the wrong week. DOR's penalty schedule for a deeded transfer works like this:
- After one month from the date of sale, a penalty of 5% of the tax due.
- After two months, another 5%, for a total of 10%.
- After three months, another 10%, for a total of 20%.
DOR says interest also applies. On the $8,934 combined bill for a $555,000 sale, the first 5% penalty alone would be about $447. That's nearly ten times what the January change saves at that price.
The calendar moves the buyer pool more than the tax
The bigger timing question is who's out shopping. Countywide figures from Spokane REALTORS show the seasonal swing clearly. The report counted 536 closed sales in September 2026. Its monthly data shows 290 in January 2026. The county had 1,080 active listings in January 2026 and 1,620 in September 2026. December 2025 ended the year with 968 active listings and 381 closings.
That works both ways for a South Hill seller. A January listing has fewer homes competing for attention, but it also has fewer buyers to draw from. Prices follow the same seasonal pattern. The countywide median closed price was $406,048 in January 2026, $437,500 in May 2026 and $419,995 in September 2026. Some of that spread comes from which homes happen to sell in each month, so it doesn't show what any single house would bring. Still, the gap between January and September medians was $13,947 countywide, about 300 times the $46.80 the new brackets save at area 211's median.
The market itself is steady heading into winter. Countywide, the September 2026 median was up 1.2% from a year earlier, closed sales were up 7.4%, and months of supply held at 3.0. That backdrop rewards a well-prepared listing over a carefully timed one. A clear plan for a winter launch, with photography, staging and pricing timed to a smaller group of active buyers, will move a South Hill outcome more than the new REET brackets will.
Quick answers for South Hill sellers
Is the local 0.50% part of the January 1 change? No. The new thresholds apply only to the graduated state portion. DOR publishes local rates in a separate table, and the one effective May 1, 2026 lists the City of Spokane and unincorporated Spokane County at 0.50%. Confirm the local rate in effect on your own date of sale.
Did the state raise its REET rates for 2027? No. DOR's 2027 schedule keeps the 1.1%, 1.28%, 2.75% and 3.0% rates and moves only the dollar thresholds. The rate schedule itself is set in RCW 82.45.060.
Who pays if a contract doesn't say? The seller does by default under RCW 82.45.080. DOR notes that the buyer becomes responsible if the seller doesn't pay.
This post is general information, not legal or tax advice. Confirm the figures for your own sale with your closing agent or a tax professional before you set a date.
If you're weighing a December closing against a January or spring listing, Amy Khosravi can walk through the actual numbers for your South Hill home with you. That means the excise tax at your likely price, the competing listings in your part of the hill, and a staging and photography plan built for the season you choose. Schedule a free consultation and we'll put both timelines side by side.
