Most Washington buyers are used to real estate excise tax being a seller-side expense. San Juan County is different. On a standard taxable purchase there, the buyer pays local real estate excise taxes equal to 1.495% of the purchase price. On a $1,000,000 purchase, that is $14,950 due as part of the transaction.
That is the reason this belongs in the budget early. A buyer comparing a San Juan County property with a home elsewhere in Washington can otherwise assume the tax treatment works the same way. It does not, and the difference can materially change cash to close.
Who Pays What in San Juan County
The easiest way to understand the structure is to separate the buyer-paid San Juan County taxes from the seller's ordinary Washington REET obligation:
| Conservation Land Bank REET: 1.00% | Buyer |
|---|---|
| Affordable-housing REET: buyer share 0.495% | Buyer |
| Affordable-housing REET: seller share 0.005% | Seller |
| Ordinary Washington REET | Generally seller |
The buyer pays the 1% Conservation Land Bank REET plus 99% of San Juan County's separate 0.5% affordable-housing levy. Ninety-nine percent of 0.5% equals 0.495%, bringing the buyer's local share to 1.495%. The seller pays the remaining 1% of that 0.5% housing levy, equal to 0.005% of the purchase price, in addition to the seller's ordinary Washington REET obligation.
That contrast is the part most Washington buyers need to notice: the ordinary REET they are used to seeing on the seller's side does not eliminate the separate San Juan County taxes charged to the buyer. For cash-to-close planning, the buyer should treat the 1.495% as its own line item.
What That Means in Dollars
Because the buyer share is a percentage of the purchase price, the calculation is straightforward:
| $500,000 purchase | $7,475 |
|---|---|
| $750,000 purchase | $11,212.50 |
| $1,000,000 purchase | $14,950 |
| $1,500,000 purchase | $22,425 |
| $2,000,000 purchase | $29,900 |
Those figures are illustrations of the current 1.495% buyer share, not closing quotes. Escrow should calculate the amount for the actual transaction and confirm whether any exemption applies.
This Is Not the Buyer's Total Closing Cost
The 1.495% is a one-time transaction tax. It is not an annual property tax, and it is not the total amount a buyer will need at closing. Depending on the purchase, cash to close can also include the down payment, lender charges, escrow and title fees, prepaid taxes and insurance, prorations, and other property-specific costs.
That distinction matters when comparing a San Juan County property with a home elsewhere in Washington. The seller still has seller-side excise-tax obligations, but the buyer also has this separate 1.495% local cost. On a $1,000,000 purchase, that adds $14,950 to the buyer's transaction costs before the other normal cash-to-close items are considered.
Budget It Before You Write the Offer
This is most useful before an offer is written, not when the settlement statement arrives. If San Juan County is part of your search, ask your lender and escrow team for a preliminary cash-to-close estimate that includes the buyer-paid local excise taxes at the price you are considering.
Buyer representation should catch county-specific costs like this early enough to inform the search. I would also confirm the property's county, the expected purchase price, the current tax treatment, and any applicable exemption before relying on a final number.
The Bottom Line
For a standard taxable purchase in San Juan County, budget 1.495% of the purchase price for the buyer's local excise-tax share. That is $14,950 per $1,000,000 of purchase price. Treat it as a separate cash-to-close item, then have escrow confirm the exact amount for the specific transaction.
Common Questions
Is the San Juan County buyer excise tax 1.5% or 1.495%?
The exact combined buyer share is 1.495% of the purchase price on a standard taxable purchase. People often round that to about 1.5%. The buyer pays the 1% Conservation Land Bank REET plus 0.495%, which is the purchaser's 99% share of the separate 0.5% affordable-housing REET.
Is the 1.495% buyer tax separate from the seller's REET?
Yes. The San Juan County buyer-side taxes are separate from Washington's ordinary real estate excise tax structure, which is generally a seller obligation. The seller also pays the remaining 0.005% share of San Juan County's affordable-housing levy. Buyers should still treat the 1.495% as their own separate cash-to-close item.
Is the 1.495% an annual property tax?
No. It is a one-time transaction cost on a covered taxable sale, not an annual property tax. Confirm the current amount and any applicable exemption with escrow for the specific transaction.
Sources
Work With Luke
Have Questions About the Seattle Market?
Luke tracks Seattle market data closely and can put the numbers in context for your specific situation, whether you're buying, selling, or evaluating a property.
