Washington Homeownership Tax & Cost article

No state income tax (a big lift for high earners), but you still pay property tax, insurance, and a graduated excise tax (REET) at sale. The trade is lower income tax for meaningful property and transaction taxes — plan on the whole structure, not the payment.

For a high W-2 earner, often substantially. The annual income-tax saving versus a high-tax state can offset a large share of the housing premium, which is why the combined picture frequently beats the sticker payment. Model the after-tax number, not the mortgage alone.

King County property tax (rates vary — verify), insurance, HOA, utilities, and a maintenance reserve. These make the true annual cost of ownership well above the payment — budget them together.

Washington's Real Estate Excise Tax, a graduated transfer tax paid by the seller at sale. It's not a holding cost but a significant exit cost on a high-value home — factor it into your eventual net, not your monthly budget.

On after-tax total cost: housing plus property and sales tax, minus the income-tax saving. High earners frequently find the net gap smaller than the home price suggests, sometimes favorable — the income-tax advantage is the swing factor.

Beyond the tax advantage of owning, the bigger lever is investment real estate against your W-2. Modeling both your after-tax cost and that opportunity is what a Real Estate Review does.