Condo vs Apartment in Seattle: No Income Tax Reshapes the Buy Case
Updated 20 May 2026
Seattle has a fact that changes the buy-vs-rent equation: Washington has no state income tax. The federal mortgage interest deduction is much less valuable here than in NY or CA because most owners do not itemise. Combine that with a tech-cycle-sensitive market and post-2022 price correction, and the right answer in Seattle depends more on how long you stay than on the rent versus mortgage spread.
Seattle snapshot (May 2026)
- Median condo sale price: around $545K (NWMLS, Q1 2026)
- Median rent (1BR): around $2,400 (Apartment List, April 2026)
- Effective property tax: roughly 0.9% (King County)
- Median HOA: $400 to $750/mo mid-rise, $700 to $1,500/mo high-rise
- No state income tax: mortgage interest deduction often worth $0 unless very high earner
Monthly comparison: $545K Seattle condo vs $2,400 rental
Assumes 20% down, 30-year mortgage at 7.0%, post-tax math assumes standard deduction.
| Cost line | Buy | Rent |
|---|---|---|
| Mortgage P&I (30-yr, 7.0%, 20% down) | $2,902 | - |
| HOA fees (median Seattle mid-rise) | $525 | - |
| Property tax (~0.9%) | $408 | - |
| HO-6 insurance | $45 | - |
| Rent (median Seattle 1BR) | - | $2,400 |
| Renter's insurance | - | $18 |
| Total monthly outflow | $3,880 | $2,418 |
Sources: King County Assessor, NWMLS Q1 2026 report, IRS Pub 936, Freddie Mac PMMS.
The tax-deduction math that surprises Seattle buyers
A first-time buyer earning $150K in Seattle, with a $400K mortgage at 7%, pays about $27,500 in mortgage interest year 1. They might assume that is all deductible. In practice, the 2025 standard deduction is $15,000 single / $30,000 married-filing-jointly. With no state tax to add (WA has none) and limited charitable giving, most single filers do not clear the standard deduction at all.
- Single filer, no state tax, modest property tax, $27,500 mortgage interest: total itemised around $32K, beats $15K standard. Net deduction benefit: $17K x 24% bracket = $4,080 tax saved.
- Married filing jointly, same scenario: total itemised around $32K vs $30K standard. Net deduction benefit: $2K x 22% = $440 tax saved. Most years, the standard deduction wins outright.
- Compare to California, where state income tax paid often already exceeds $15K, every dollar of mortgage interest produces direct savings.
Source: IRS Pub 936, IRS Schedule A 2025, IRS standard deduction inflation tables.
Other city comparisons
Related: Mortgage interest deduction · 10-year calculator · First-time buyer