Seller Closing Costs in Spokane County: What to Expect (2026)
The short answer: when you sell a home in Spokane County, your biggest costs at closing are usually any commission you agree to and Washington's real estate excise tax (REET), which is about 1.6% of the sale price on most homes in Spokane, Spokane Valley, Liberty Lake, and unincorporated Spokane County. You'll also typically pay for the buyer's owner's title insurance policy, your share of escrow fees, prorated property taxes, and your mortgage payoff. Knowing these numbers before you list lets you estimate your real bottom line, not just your sale price.
I'm a licensed Washington State real estate agent serving Spokane County. Here's what comes out of the sale price, line by line, and how to estimate what you'll actually walk away with.
The Big One: Washington's Real Estate Excise Tax
Washington charges a graduated state excise tax on real estate sales. Like income tax brackets, each portion of the price is taxed at its own rate. The 2026 state rates are:
| Portion of Sale Price | State REET Rate |
|---|---|
| Up to $525,000 | 1.1% |
| $525,000.01 – $1,525,000 | 1.28% |
| $1,525,000.01 – $3,025,000 | 2.75% |
| Above $3,025,000 | 3.0% |
Starting January 1, 2027, the thresholds rise to $551,000, $1,551,000, and $3,051,000, with the same rates.
On top of the state rate, local governments add their own REET. According to the Washington Department of Revenue's current table:
- 0.5% local: City of Spokane, Spokane Valley, Liberty Lake, Airway Heights, Cheney, Deer Park, Millwood, and unincorporated Spokane County.
- 0.25% local: a few smaller towns, including Medical Lake, Fairfield, Latah, Rockford, and Spangle.
Example: on a $400,000 home in the City of Spokane, the entire price is in the first bracket, so the state tax is 1.1% ($4,400) plus 0.5% local ($2,000), about $6,400 total. The seller pays it, and it's collected at closing through escrow.
Because the brackets are graduated, only the part of the price above each threshold is taxed at the higher rate. A $600,000 sale in 2026 is taxed 1.1% on the first $525,000 and 1.28% on the remaining $75,000.
Commissions
Commission is usually the largest seller cost, and it's negotiable. Since 2024's nationwide changes to how buyer-agent compensation works, sellers decide more directly whether and how to offer compensation to a buyer's agent, and buyers sign their own agreements with their agents. I walk through the options and trade-offs in plain terms before you sign anything, so there are no surprises on your settlement statement.
Title Insurance and Escrow
- Owner's title insurance. In Spokane County, the seller customarily pays for the buyer's owner's title policy, which protects the buyer against ownership problems from before the sale. The cost depends on the price.
- Escrow fee. Washington closings run through a neutral escrow company. The fee is commonly split between buyer and seller, though that split is negotiable.
- Smaller items. Recording and reconveyance fees to clear your loan from the title, and sometimes courier or wire fees.
Your escrow or title company can give you an estimate of these once you have a price in mind.
Your Mortgage Payoff and Prorations
- Loan payoff. Your remaining mortgage balance, plus interest through the payoff date, is paid off at closing. Ask your lender for a payoff statement, since it's usually a bit higher than the balance on your monthly statement.
- Property taxes. Taxes are prorated to the closing date, so you pay for the time you owned the home. Depending on when you close and what you've already paid, this can be a charge or a credit.
- HOA dues. If you have an HOA, dues are prorated, and some associations charge transfer or document fees.
Costs That Depend on the Deal
- Repairs or credits negotiated after the buyer's inspection.
- Seller credits toward the buyer's closing costs. These are common in a market where buyers have more leverage, and can sometimes get a deal done without a price cut.
- Pre-sale prep like cleaning, repairs, and paint, paid before listing rather than at closing. See how to prep your home to sell.
Estimating Your Net Proceeds
Here's a simple way to estimate what you'll walk away with:
| Item | Example ($400,000 sale, City of Spokane) |
|---|---|
| Sale price | $400,000 |
| Excise tax (1.1% state + 0.5% local) | – $6,400 |
| Mortgage payoff | – your payoff amount |
| Commission you agree to | – your agreed amount |
| Owner's title policy, escrow share, fees | – per your escrow estimate |
| Prorated taxes, HOA, credits, repairs | – or + depending on the deal |
| Your net proceeds | What's left |
When we work together, I prepare a detailed net sheet with your real numbers before you list, and update it when offers come in, so you can compare offers by what you'd actually keep.
A Note on Taxes on the Sale
Federal law allows many homeowners to exclude a significant amount of gain when they sell their primary residence, if they meet ownership and use requirements. Washington's separate capital gains tax does not apply to real estate. Investment properties, rentals, and inherited homes follow different rules. I'm not a tax advisor, so confirm your situation with a CPA before you sell.
Know Your Numbers First
The best time to understand your costs is before you decide to list. If you'd like a realistic value and a net estimate for your home, request a home evaluation and I'll put it together personally.
William Kearney is a licensed Washington State real estate agent with Real Broker, LLC. and Own With Will, serving home buyers and sellers throughout Spokane County. This article is educational and is not legal, tax, or financial advice. REET rates are from the Washington Department of Revenue's published tables and can change; confirm your exact figures with your escrow company and tax professional.
Common questions
How much is the excise tax when selling a home in Spokane?
Washington's state real estate excise tax is 1.1% on the portion of the price up to $525,000 in 2026, with higher rates above that. Most of Spokane County adds a 0.5% local rate, including the City of Spokane, Spokane Valley, Liberty Lake, and unincorporated county. On a $400,000 sale that's about $6,400 combined.
Who pays closing costs when selling a house in Washington?
By custom and contract, sellers usually pay the real estate excise tax, the owner's title insurance policy, their share of escrow fees, and any commission they agree to, plus their mortgage payoff. Buyers pay their own loan costs. Many items are negotiable in the purchase agreement.
Are real estate commissions negotiable?
Yes. Commissions have always been negotiable, and since 2024's nationwide changes to how buyer-agent compensation works, how commissions are structured is discussed more openly than ever. Talk it through with your agent before you sign a listing agreement.
Do I pay capital gains tax when I sell my home?
Federal law lets many homeowners exclude a large amount of gain on the sale of a primary residence if they meet ownership and use requirements. Washington's separate capital gains tax does not apply to real estate sales. Your situation depends on the details, so confirm with a tax professional before you sell.