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Washington Real estate Capital Gains Tax 2026: 7% tax on long-term capital gains above the annual threshold.

Washington Real estate capital gains in this model: 7% tax on long-term capital gains above the annual threshold.. Use this calculator to stack federal long-term or short-term tax, NIIT when it applies, and Washington's modeled treatment. Washington is not a zero-CGT state here: long-term gains can face the encoded surtax above the threshold even with no ordinary income tax.

Rates last verified: August 2026

Capital Gains Calculator

Federal · NIIT · All 50 states

2026 ratesIRS verified

Follow the three steps, save the sale, then calculate. Required fields are marked with *.

Your tax profile

These apply to every sale in this estimate.

What you sold

Prices and quantity for this lot. Give it a name if you will add more than one sale.

Asset type

When you bought and sold

The IRS uses these dates to decide short-term vs long-term rates.

Next: Save this sale to the order log, then click Calculate now. Tax results do not update until you calculate.

Order log

Sales included in this tax estimate.

Please fill in the details to see your results. Follow the three steps on the left, then save a sale here.

Washington tax on real estate

Washington uses a special rule: 7% tax on long-term capital gains above the annual threshold. real estate gains still follow federal character first.

Federal rules for real estate: Primary-residence sales may use IRC Section 121 ($250,000 / $500,000). Investment property may use a 1031 planning deferral and can include unrecaptured Section 1250 depreciation. This estimate is not Form 8824. Holding period still matters for LTCG vs STCG except where a longer QSBS or real-estate test applies.

Open the parent Washington calculator for a generic sale, or the national Real estate lander for asset-only copy. Nearby states below keep the same real estate preset so you can compare residency. Estimates are not tax advice.

This real-estate illustration is an investment property, so Section 121 does not apply. Depreciation recapture and a 1031 preview are separate from this three-row gain table. The table is not Form 8824.

This calculator models Washington long-term capital gains at 7% above $262,000. It does not apply a 9.9% tier on gain above $1 million, and it does not inflation-adjust the $262,000 figure for 2026.

Only long-term gain is run through that surtax. Short-term gain is not taxed by Washington in this model. A $50,000, $100,000, or $250,000 long-term gain sits under the $262,000 threshold, so the illustrated Washington line is $0. Gain above $262,000 is taxed at 7% on the excess only.

Rates last verified: August 2026. Official source: https://dor.wa.gov/.

Washington calculatorReal estate (all states)U.S. Capital Gains Tax CalculatorSection 1211031 exchange

Illustrated tax on a long-term gain

Real estate held long enough for long-term treatment in Washington. Investment real estate does not use Section 121 in this table. QSBS uses a more-than-five-year hold.

GainFederalNIITWashingtonTexas state tax
$25,000.00$3,750.00$0.00$0.00$0.00
$100,000.00$15,000.00$0.00$0.00$0.00
$250,000.00$37,500.00$4,940.00$0.00$0.00

Single filer, tax year 2026, $80,000.00 of other taxable income. Texas is the no-tax comparison. Illustration only, not your return.

FAQ

Washington Real estate FAQs

How does Washington tax real estate capital gains?

Washington uses a special rule: 7% tax on long-term capital gains above the annual threshold. real estate gains still follow federal character first.

Does Washington follow Section 121 or 1031 automatically?

This calculator models federal Section 121 on a qualifying home sale and a 1031 planning path for investment property. Washington conformity can differ from federal law. Confirm Washington home-sale and like-kind rules before you close.

Which IRS forms apply to a Washington real estate sale?

Plan around closing statements, Form 8949, Schedule D, and Form 8824 if you complete a 1031. Washington may require its own income-tax return when the state line is not $0. NIIT, if any, is computed on Form 8960.

Do Washington special rules apply to real estate the same as to other assets?

7% tax on long-term capital gains above the annual threshold. Asset character (for example collectibles or QSBS) is determined federally first. The Washington special layer then applies to remaining taxable gain in this estimate.

What does the Washington Real estate illustration assume?

The Washington Real estate rows use a single filer with $80,000 of other income and a long-term gain in 2026. This real-estate illustration is an investment property, so Section 121 does not apply. Depreciation recapture and a 1031 preview are separate from this three-row gain table. The table is not Form 8824. Texas is the no-tax comparison, not a second residency.

Same asset, nearby states