No Capital Gains Tax on Real Estate?

[Katie King]

Just wanted to confirm this is correct- in Washington state you no longer have to pay capital gains tax on real estate, regardless of how long you owned the property? 

My husband and I are putting our new construction home on the market later this summer. Bought land back in 2019, finished building in 2022, listing in summer 2023. 

Just wanted to make sure we wouldn't have an issue with capital gains tax. 

Thanks for any advice!

[Allan C.]

@Katie King just want to make sure that you’re only thinking about the 7% state tax. Your federal capital gains obligation will remain regardless what your local state regulations say.

There are a handful of states that have 0 capital gains tax, and it seems WA may have some exclusions for RE (confirm with a specialist); however, state level tax is smaller than fed level.