Buying a home in Seattle: payments, excise tax and city down payment loans

#Seattle’s incomes and prices

Seattle has the highest median household income among the 20 large cities we cover and the second-highest median home value. Most Seattle households rent: 41.9% of occupied homes are owner-occupied, compared with 62.9% statewide. The price-to-income ratio of 8.0 is higher than the national 4.4, so higher incomes don’t close the gap.

The median owner pays the largest property tax bill of the group, and median owner costs with a mortgage are the highest.

#Two Seattle payments: the median home and the affordable one

The right-hand column is the price at which housing costs stay within Freddie Mac’s 30% guideline on the city’s median income. Paying for the median home inside the same guideline takes about $291,000 a year. Ways to close that gap include a condo or townhome, a second income or a larger down payment; test the trade-offs in the affordability calculator and the payment calculator.

#Seattle’s real estate excise tax: state tiers plus the city’s share

Washington charges a graduated real estate excise tax (REET) on the price — 1.1% on the first tier and higher rates above it — and each city adds a local rate. Seattle’s local rate is 0.5%. The Department of Revenue says the seller usually pays, but the buyer is responsible if the seller doesn’t.

On the median home that is 1.68% of the price. The state tiers adjust every four years, with new thresholds starting January 1, 2027. Estimate the rest of your closing bill in the closing cost calculator.

#Seattle loans and the conforming limit

A 10% down payment on the median Seattle home leaves a $855,720 loan, $22,970 above the 2026 national baseline conforming limit of $832,750. With 10% down, prices up to about $925,000 stay under the baseline. Above it, whether a loan is conforming depends on King County’s 2026 limit, which can be no higher than the $1,249,125 ceiling; look it up on FHFA’s map before you choose between a conforming and a jumbo loan.

#Office of Housing down payment loans

The City of Seattle’s Office of Housing funds down payment assistance of up to $76,000 per household, delivered through nonprofit partners that set their own loan terms. To qualify you must:

• Earn less than 80% of area median income for your household size.
• Be a first-time buyer, or not have owned a home in the past 3 years.
• Buy a principal residence inside Seattle city limits.
• Complete a City-approved pre-purchase education class and one-on-one counseling.

At the price the median income supports, the maximum would cover about 20% of the price. The City notes that its former Seattle Downpayment Assistance Program through the Washington State Housing Finance Commission is no longer available, so start with the Office of Housing’s current partner list. Statewide programs are on the Washington guide.

Seattle sits in an active earthquake zone, and standard homeowners policies generally exclude quake damage, so price a separate earthquake policy — especially for older unreinforced homes. Compare Seattle with Denver and Los Angeles, or check the rent vs buy calculator against the median rent of $2,007/mo.