By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
Washington has no state income tax, which is the headline, and it funds itself through other mechanisms — including a graduated real estate excise tax paid by the seller that reaches among the higher transfer tax rates in the country at upper price points. That doesn't affect the purchase; it affects the eventual sale, and it's worth knowing before buying into it. Two other things a New York buyer should expect: Washington closings run through escrow rather than attorneys, and the state's seller disclosure statement gives buyers a rescission right that New York's does not.
Start With the Long Island Sale
At three thousand miles, sequencing isn't optional. Coordinating simultaneous closings across the country is impractical, and the Long Island transaction sets the budget.
Before touring anything, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.
A seller who establishes Washington residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.
For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce taxable gain substantially. The full treatment of how gain is calculated covers the mechanics.
Sell first.
No Income Tax, and How Washington Funds Instead
Washington is one of a handful of states without a personal income tax. For a household with substantial earned income relocating from New York, that's a genuine and recurring advantage.
Property taxes are also generally lower than Nassau County's, and the structure differs from what a Long Island seller knows. Washington limits how much a taxing district's total levy can grow year over year, while assessments track market value. That produces a different dynamic than Nassau's reassessment cycle — the constraint operates on what districts can collect rather than on individual assessed values.
The state funds itself through other channels, and the two that matter to a homebuyer are sales tax, which runs high, and the real estate excise tax covered below.
For a Nassau County seller, the practical comparison is total annual cost rather than any single line. Pull the actual current property tax bill on any specific property under consideration rather than relying on averages, and factor sales tax into everyday spending.
The Transfer Tax You'll Pay Later
This is the item most likely to surprise a Washington seller, and it's worth knowing as a buyer.
Washington imposes a real estate excise tax on the sale of real property, structured in graduated tiers that rise with sale price. Local jurisdictions may add their own portion on top. The seller pays it, and at upper price points the combined rate reaches among the higher transfer tax burdens in the country.
For someone buying in Seattle now, that doesn't affect the purchase. It affects the eventual sale — and at Seattle price points the figure can be substantial. That makes it a genuine consideration for anyone taking a defined-term position or who may not stay long.
Rates and tiers are set at state and local level and change. Confirm current figures with a Washington professional before buying into it.
Buying Works Differently, and the Disclosure Does Too
Two adjustments a New York seller should expect.
Washington closings run through escrow. A neutral escrow company holds funds and documents and coordinates the closing, with title insurance handled alongside. No attorney is necessarily involved on either side. In New York, contract drafting and negotiation are reserved to licensed attorneys and the seller's attorney runs the closing — so this is a real change. A buyer who wants legal review retains counsel separately and pays for it. The fuller picture of what the attorney handles on the New York side describes what you'd be giving up.
The seller disclosure statement gives buyers a rescission right. Washington uses a statutory disclosure form, commonly called Form 17, and after it's delivered the buyer has a defined period in which they may rescind the agreement. New York has nothing equivalent — the Property Condition Disclosure Statement is delivered before a binding contract and creates no rescission window.
That difference reshapes the early transaction. A Washington buyer holds an exit that a New York buyer doesn't, and the timing of delivery matters to when the deal becomes firm. Worth understanding before signing rather than during. New York's own framework is covered in the full treatment of what the disclosure form asks.
Inspection and contingency structures also differ, and in competitive Seattle-area situations buyers sometimes conduct pre-inspections before offering. A New York buyer accustomed to a post-contract inspection contingency should understand the local practice before competing.
Two Physical Risks Worth Pricing
Earthquake. The Pacific Northwest sits along the Cascadia subduction zone, and seismic risk is a genuine consideration rather than a formality. Earthquake coverage is generally excluded from standard homeowner's policies and purchased separately, with its own deductible structure — frequently expressed as a percentage of insured value rather than a flat amount. Price it on specific properties rather than assuming.
Slope and soil. Seattle's topography means some properties sit on or near steep slopes, and certain areas carry environmentally critical or landslide-designated status. That can affect what may be built or modified, what a lender will finance, and what inspection scrutiny a property attracts. A geotechnical question on a hillside property is worth raising before an offer, not during due diligence.
Practical Logistics
Roughly 2,800 miles — a genuine cross-country move requiring long-haul movers booked well ahead, with vehicle shipping standard.
The market is competitive in desirable areas, with multiple-offer situations common. A buyer arriving from a New York attorney-driven process should understand the pace and the local offer conventions before competing.
Climate is a real adjustment: mild wet winters, cool dry summers, and persistent cloud cover through much of the year. Total rainfall is lower than in many eastern cities; the character of the weather is what people notice.
On sequencing: selling the Long Island home first produces clean funds, a defined budget, and a purchase offer with no contingency on another sale. Buying first means carrying both properties, frequently $12,000 to $16,000 monthly combined at Long Island price points.
A Worked Example
Consider a composite case — a Nassau County household relocating for a Seattle-area position, selling a colonial that comped near $1,120,000, on a role with a defined three-year term.
The excise tax changed their thinking. Their Washington attorney explained that the seller pays it on a graduated scale, and at the price point they were considering the eventual sale would carry a substantial cost. Given a three-year horizon, that shifted the buy-versus-rent question meaningfully — and they ultimately bought at a lower price point than planned.
They also learned about the Form 17 rescission window, which reframed how they thought about the early transaction. And they priced earthquake coverage on two properties, finding the deductible structure unfamiliar enough that it warranted a conversation with an agent rather than a checkbox.
On the New York side, they sold first. Their attorney's early title review turned up an old lien from a satisfied home equity line, cleared in three weeks before listing.
Where to Start
Build the net-proceeds model on the Long Island home and sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.
On the Washington side: ask about the real estate excise tax and what it would cost on an eventual sale, particularly if the horizon is short. Understand the Form 17 process and rescission timing. Pull actual property tax bills on specific properties. Price earthquake coverage. Ask geotechnical questions on any hillside property. And decide whether you want your own counsel, since none comes with an escrow closing.
Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value.
The Honest Bottom Line
The absence of a state income tax is real and it compounds for a household with substantial earned income. Property taxes are generally lower than Nassau's. Both favor the move.
What deserves attention is the excise tax, because it's invisible at purchase and substantial at sale. A buyer with a long horizon can reasonably discount it. A buyer who may move again in a few years should price it before committing, since it's a cost the state collects on the way out rather than on the way in.
And the process differences are worth preparing for — escrow rather than attorneys, a disclosure form that gives buyers a rescission right, and a competitive market with local offer conventions a New York buyer won't recognize.
For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.
This is general information, not legal, tax, insurance, or financial advice. Washington excise tax rates, levy limits, disclosure and rescission requirements, and insurance availability vary and change. Confirm current specifics with a Washington attorney and local professionals, and confirm New York specifics with a licensed New York real estate attorney and a CPA.
FAQs
Does Washington have lower taxes than New York?
On income, yes — Washington has no state personal income tax, which is a recurring advantage for a household with substantial earned income. Property taxes are also generally lower than Nassau County's, with a different structure: Washington limits how much a taxing district's total levy can grow year over year while assessments track market value, rather than operating through a reassessment cycle. The state funds itself through other channels, including high sales tax and a real estate excise tax paid by sellers.
What is Washington's real estate excise tax?
A tax on the sale of real property, structured in graduated tiers that rise with sale price, with local jurisdictions able to add their own portion. The seller pays it, and at upper price points the combined rate reaches among the higher transfer tax burdens in the country. It doesn't affect a purchase — it affects the eventual sale, which makes it a genuine consideration for anyone with a short horizon. Rates and tiers are set at state and local level and change, so confirm current figures locally.
Does Washington require an attorney to buy a home?
No. Washington closings run through escrow — a neutral escrow company holds funds and documents and coordinates the closing, with title insurance handled alongside, and no attorney is necessarily involved on either side. For a New York seller accustomed to counsel drafting the contract, negotiating, and running the closing, that's a real adjustment. A buyer who wants legal review retains an attorney separately and pays for it, which is worth deciding before the transaction starts.
How is Washington's seller disclosure different from New York's?
Washington uses a statutory disclosure form, commonly called Form 17, and after delivery the buyer has a defined period in which they may rescind the agreement. New York has nothing equivalent — the Property Condition Disclosure Statement is delivered before a binding contract and creates no rescission window. That difference reshapes the early transaction, since a Washington buyer holds an exit that a New York buyer doesn't, and the timing of delivery affects when the deal becomes firm.
What physical risks should a Seattle buyer price?
Two. Earthquake exposure is genuine given the Cascadia subduction zone, and coverage is generally excluded from standard homeowner's policies and purchased separately, often with a deductible expressed as a percentage of insured value rather than a flat amount. And slope — Seattle's topography means some properties sit on or near steep slopes, and certain areas carry environmentally critical or landslide-designated status affecting what can be built, what lenders will finance, and what inspection scrutiny applies.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
