Washington's estate tax is the highest in the country, and your house counts toward it

The 2025 changes

The exclusion rose to $3 million (indexed), and the rate schedule rose sharply, topping out at 35%. Unlike the federal exclusion, Washington's does not transfer between spouses, so the planning burden falls on titling and trust work done in advance.

Why this reaches homeowners

In Medina, Clyde Hill, West Bellevue, and along the Kirkland and Mercer Island waterfronts, the house alone frequently exceeds $3M. Add a brokerage account and vested equity, and households that would not describe themselves as ultra-wealthy are well into the taxable range. A $12M estate can owe Washington seven figures.

Where real estate decisions enter estate planning

• Valuation and timing. The tax is levied on value at death. Whether to sell appreciated property during life or hold it for the federal step-up in basis is a genuine tradeoff for your CPA and attorney to model, and the model needs accurate, defensible property valuations. Providing those is part of my role.
• Titling. Community property agreements, trusts, and LLCs each change the options available later. Structure has to be decided years before it is needed.
• Estate and trust sales. When an estate must sell a property, the sale has its own requirements: fiduciary duties, court timelines, family dynamics, and a market that discounts a listing that looks distressed.
• Situs. Out-of-state property is generally outside Washington's estate tax. Washington property owned by non-residents is inside it. Where you hold real estate now has an estate-tax dimension.

This is not tax or legal advice. Aditya Kasturi is a licensed real estate broker, not a CPA, attorney, or financial advisor. Figures are illustrative, based on Washington and federal law as understood at the time of writing, and laws change. Confirm any strategy on this page with your CPA and, where relevant, your estate planning attorney before acting.