Washington State Mortgage Overview
Washington State has no state income tax, making it attractive for homebuyers. Property taxes, high median prices in King County (Seattle), and the WA Real Estate Excise Tax (REET) are key budget factors.
Frequently Asked Questions
WA property taxes average about 0.98% of assessed value statewide, but vary by county. King County runs ~0.92%, Spokane ~1.12%. Always verify current rates with your county assessor as rates change annually.
No. Washington has no state income tax. However, WA has a 6.5% state sales tax plus local taxes, and a Real Estate Excise Tax (REET) of 1.1%–3% on home sales depending on sale price.
The WSHFC offers Home Advantage (below-market rates + DPA) and House Key Opportunity (income-limited buyers). Visit wshfc.org for current eligibility, income limits, and rate information.
WA median home prices vary widely. King County averages $750,000–$900,000+. Spokane area averages $300,000–$380,000. The statewide median is approximately $550,000–$620,000 as of 2025.
For a $800,000 Seattle home with 20% down at 7%, monthly PITI is approximately $5,500–$6,000. Using the 28% housing rule, you need gross income of roughly $235,000+ per year.
PMI is required on conventional loans when your down payment is less than 20% — same as all states. PMI typically costs 0.5–1.5% of the loan amount per year and can be removed at 80% LTV.