Home Affordability in Seattle, WA
No state income tax, like Texas — but Washington stacks three layers of real estate excise tax that can run 3–4x higher than a comparable California or Massachusetts sale.
Quick answer
On a $868,000 home in Seattle with 20% down, expect all-in monthly housing costs (mortgage, property tax, insurance, maintenance) of roughly $6,000/month — and about $205,600 in total cash to close and move in.
Example scenario at a 6.65% 30-year fixed rate. Illustrative only — run your own numbers below.
The Seattle market right now
Seattle's median sale price was $868,250 in July 2026 per NWMLS-based reporting, up 1.8% year over year — though the exact figure depends on methodology. A blended house-and-condo King County breakout put Seattle proper closer to $840,000 in March, while broader King County reached $889,000 in June. The spread between sources is a useful reminder to check exactly what is being measured before comparing home-price numbers across markets.
What it actually costs to buy in Seattle
Most affordability calculators stop at the mortgage payment. That leaves out the two lines that decide whether a purchase is comfortable or tight: property tax and, below 20% down, PMI. Here is the full picture on a $868,000 home with 20% down at 6.65%:
| Cost | Monthly |
|---|---|
| Mortgage principal & interest | $4,458 |
| Property tax (0.8%) | $579 |
| Homeowners insurance | $250 |
| Maintenance reserve | $723 |
| Total | $6,010 |
Seattle's effective property tax rate (0.80%) runs meaningfully below the national average — well below Boston's or New York's. Washington funds government primarily through sales and excise taxes rather than property tax, so the recurring, annual cost of ownership here is comparatively light.
Transfer tax and the long-run trade
Washington has no state income tax, similar to Texas — but the trade-off runs through real estate excise tax (REET) instead of property tax. REET stacks three layers: Washington State's graduated rate (1.10% up to $525K, 1.28% up to $1.525M, higher above that), King County's flat 0.50% surcharge, and Seattle's own city REET (0.50% up to $1.5M, 1.75% up to $5M, 2.25% above). On the $868,000 example home that combines to roughly 2.28% — about $19,800 due at closing, customarily paid by the seller. It is a strikingly different trade-off from Austin's: Seattle front-loads more cost into the one-time sale, while Austin repeats a smaller-looking percentage every single year through property tax.
Two down payment scenarios
Putting down less than 20% brings private mortgage insurance into the picture — priced by how much you put down, not a flat rate. On the same $868,000 home:
| 20% down | 10% down | |
|---|---|---|
| Down payment | $173,600 | $86,800 |
| Loan amount | $694,400 | $781,200 |
| Monthly P&I | $4,458 | $5,015 |
| Monthly PMI | $0 | $358 |
| Total monthly housing | $6,010 | $6,925 |
The $86,800 you keep by putting down 10% instead of 20% carries a real recurring cost — about $358/month in PMI on top of a larger loan balance, until the balance falls to 80% of the original purchase price. Whether that trade is worth it depends on what else that cash could do for you: emergency reserves, invested elsewhere, or simply not being spent. That is the kind of trade-off a static calculator cannot weigh but a full 30-year projection can.
Cash needed to close
Beyond the down payment, budget for closing costs, prepaids, and move-in costs:
| Closing costs | $11,580 |
| Prepaids (interest, insurance, tax escrow) | $7,134 |
| Move-in costs | $13,282 |
| Down payment | $173,600 |
| Total cash to close | $205,596 |
What income do you need?
There is no single answer, but there is a useful threshold. Viso starts flagging a purchase as tight once housing — mortgage, property tax, insurance, and PMI, excluding maintenance — passes about 42% of take-home pay. On the 20%-down scenario above, housing runs $5,286/month, which implies take-home of roughly $12,600/month to stay under that line.
We deliberately do not translate that into a gross salary. The gap between gross and take-home swings widely with filing status, retirement contributions, equity compensation, and — a large factor that varies entirely by state — whether you owe state income tax at all. Put your actual income and location into the planner and it will do the conversion properly.
Is 4% appreciation realistic for Seattle?
We use 4.0%/year for Seattle — the highest starting assumption of the West Coast markets on this site, reflecting the region's historically strong tech-driven long-run appreciation. Treat the near term more skeptically: July's 1.8% year-over-year gain is modest by Seattle's own standards, and Redfin's broader reporting showed prices actually down year over year as recently as June. The multi-year assumption is reasonable; the current trend is genuinely unsettled.
FAQ
- What is the median home price in Seattle right now?
- $868,250 as of July 2026 per NWMLS-based reporting, up 1.8% year over year — though figures vary somewhat by source and whether condos are blended in with houses.
- Why do different sources report different Seattle median prices?
- Methodology varies: some blend house and condo sales together, others report them separately, and geographic boundaries differ between "Seattle proper" and broader King County. Always check what exactly is being measured.
- What is Washington's real estate excise tax (REET)?
- Washington's transfer tax, paid by the seller, with a graduated state rate from 1.10% to 3.00% depending on price, plus local additions from the county and city.
- Does Seattle have its own transfer tax on top of the state’s?
- Yes — Seattle layers a city REET (0.50%–2.25%, tiered by price) on top of both the Washington state rate and a 0.50% King County surcharge. Combined, the total can run over 2% on a typical home.
- When does PMI drop off in Seattle?
- The same rule as everywhere: once your loan balance reaches 80% of the original purchase price.
- Is 20% down realistic on an $868K Seattle home?
- Twenty percent down on the example home is about $173,600. Plenty of buyers put down less and pay PMI as the trade-off for keeping more cash on hand — the right call depends on your full financial picture.
Run your own Seattle numbers
Change the price, down payment, income, and rate — and see the full 30-year picture, not just a monthly payment. Free, no account needed.
Start planning →Rate assumption: 6.65% (Freddie Mac PMMS 30-year fixed, as of 2026-08-20). Median price: Northwest MLS (NWMLS), Seattle closed sales, July 2026.