Washington Mortgage Calculator

Mortgage Calculator in Washington

The median home price in Washington is $600,000, which is 43% above the national average of $420,000. Washington's effective property tax rate of 0.87% is 0.23 percentage points lower than the national average of 1.1%.

Metric	Washington (WA)	National Avg	vs National Average
Median Home Price	$600,000	$420,000	+43%
Property Tax Rate	0.87%	1.1%	-0.23%
Home Insurance (Annual)	$1,900	$2,300	-17%
State Sales Tax	6.5%	5%	+1.5%
FHA Loan Limit	$766,550	$472,030	Higher
Conforming Loan Limit	$766,550	$766,550	Standard

Homeownership in Washington

Washington State has one of the most expensive housing markets in the country, with the Seattle metro pushing the statewide median to around $600,000. The state has no income tax -- relying on sales tax and the Business and Occupation (B&O) tax for revenue -- but Washington passed a 7% capital gains tax in 2021 that applies to long-term gains above $262,000 on assets other than real estate. The tech sector (Amazon, Microsoft, Boeing) has driven sustained high-income demand in the Puget Sound region.

Tips for Washington Homebuyers and Homeowners

• Washington has no state income tax on wages -- a significant benefit for high earners, particularly those in Amazon, Microsoft, or aerospace careers where compensation is high.
• Washington's excise tax on real estate sales (REET) is graduated: 1.1% on the first $525,000, 1.28% up to $1.525 million, and higher above that -- sellers, not buyers, pay this tax at closing.
• The capital gains excise tax (7% above $262,000) applies to stocks, bonds, and most financial assets -- but expressly excludes real estate and retirement accounts, which reduces its direct homeownership impact.
• Seattle-area property taxes have risen sharply with values -- a $600,000 home at 0.87% pays roughly $5,200 per year, and many Seattle homeowners saw large increases in 2022-2023 assessments.

Washington Programs and Assistance

• Washington State Housing Finance Commission (WSHFC) Home Advantage Program -- below-market rate first mortgages with down payment assistance for first-time buyers and those who have not owned in three years.
• WSHFC House Key Program -- targeted at lower-income buyers with income below 80% AMI, offering deeper subsidies and more flexible qualifying criteria.
• Seattle Office of Housing Downpayment Assistance Loan Program (DALP) -- up to $55,000 in 0% interest deferred loans for income-eligible buyers purchasing in Seattle.

Did you know? Washington has no state income tax but has a 10.4% combined state-and-local sales tax rate in King County (Seattle) -- one of the highest sales tax burdens in the country, which effectively replaces the income tax for many households.