Your EZ Guide to Washington Property Taxes

In Washington State, property taxes make up 9.4% of the state’s general fund. That amounted to $4.5 billion in 2022. These funds are a significant source of revenue for Washington state and its local governments. But how much do these taxes add to your homeownership expenses? Here’s a basic overview of property taxes in Washington.

About Property Taxes in Washington State

The state’s tax system is somewhat complicated, but there is some good news. Washington State ranks in the middle of the road for individual homeowners’ tax burdens. Its 2023 average effective property tax rate–the percentage of home value paid in taxes–was 0.87%. In dollar figures, homeowners owed an average of $3,193.47 that year.

Homeowners in Washington pay property taxes to three main entities: county, city, and school districts. Unlike many other states, taxpayers do pay some property tax to the state. This levy started in 2017 and goes to state schools.

Counties may have extra tax levies for road maintenance, emergency medical services, fire services, and libraries. As of 2023, property taxes accounted for about 30% of charged state and local taxes. In 2023, about 56% of Washington homeowner tax revenue went to public school districts. Some 16% funded county operations, and 13% financed cities or towns. 

The system is called a “budget-based property tax.” A county, city, school, or special purpose district will establish how much it needs to fund its annual budget. It then calculates how much of that needs to come from property tax revenues. That’s the levy amount. 

Each county assessor certifies this amount by November 30 each year. It then figures the levy rate by dividing the total by the assessable value of all properties within the tax district.

Washington’s Department of Revenue doesn’t handle the collection. It oversees the administration of property taxes at the local level to verify that all taxing authorities follow the rules. All Washington property taxes are paid directly to the counties. 

Tax Assessment Process

It begins with setting a property value. The county assessor determines the value of each real property in the county. 

All properties are appraised at 100% of their fair and true market value. Washington defines that as how much an unobligated buyer will pay a seller. 

Depending on the local real estate market, property type, and other factors, the county assessor will use the market, cost, or income approach to determine a value. Most homes in Washington state have their value set using the market or sales comparison method.

Property valuations update every year. State law requires a physical inspection at least once every six years.  After the valuation, all homeowners will receive their Change of Value Notice.

Washington State Tax Rates

Actual property tax rates in Washington State depend on where you live, the local taxing district’s budget, and voter-approved levies.

The assessed value is multiplied by the property’s tax rate to determine the taxable value. Certain exemptions or deductions may apply.

Local governments set their tax rates based on their annual budget. These rates, or levies as Washington State calls them, are expressed at $1 per every $1,000 in property value.

Not sure what that means? Let’s say your Washington home has an assessed value of $400,000. A levy rate of 0.25 means you’ll pay a quarter for every $1,000 of home value, which comes out to $100.

But tax rates can’t go up to fund bigger budgets. The state’s constitution limits annual property rate increases to 1% of the property’s fair value. You may hear this called the “$10 limit” in tax circles. That’s because 1% of $1,000 is $10. Any taxes outside this limit will have to be “special” levies. This excess levy–called a levy lid lift–must be voter-approved.

What if the property tax increases go over the $10 limit? There’s a process called prorationing, for which the state Department of Revenue has step-by-step instructions. Note that the limit is strictly on the levies and not property values. Those can still rise by fair market value every year, regardless of the percentage increase.

Making Your Tax Payment

County Treasurers mail property tax statements in February every year. Property owners must pay at least half of the owed tax by April 30 of that year. The balance is due by October 31.

Failure to make Washington property tax payments on time or at all will result in penalties through interest on owed taxes. Eventually, the homeowner can lose their property through a tax foreclosure process.

Property taxes can be paid in person or by mail. Some counties have a system for electronic payments, but not all are equipped for this. Check with your local County Treasurer.

Tax levies and what you’ll owe will change each year. Looking at just real property tax ratios, the highest levies for 2023 were in:

• Pacific County, 95.0
• Whatcom County, 94.8
• Spokane County, 94.6

While the lowest levies were in:

• Asotin County, 66.5
• Adams County, 67.5
• Grant County, 73.1

That does not account for property values, which can influence the actual dollar amount paid. For instance, King County has high median home values, so owners paid the highest average amount in the state, $6,328 for 2024.

Appealing Property Taxes

Like most states, you can’t appeal the levy, but you can appeal the assessed value. The process starts at the county level. To see how to appeal the change in value, go to the local county assessor’s office. You can see the comparable sales information the assessor used to update the home’s value. 

The appeal requires you to present factual evidence, such as an independent party appraisal or proof of excessive property deterioration that would lower its value.

If the county-level appeal does not bring the resolution you seek, escalate the appeal to the county Board of Equalization (BOE). Again, the local county sets forms and processes, so start there. Most petitions must be filed by July 1 of that year or within 30 days of the change in value notice receipt. 

The final step will take the appeal to the State Board of Tax Appeals. 

Tax Exemptions and Relief

Are your Washington property taxes too high? There are some tax relief programs to lower your bill.

Senior Exemption: Seniors may be eligible for property tax relief based on age, income, or disability status. This exemption operates as a tax freeze. Whatever your value is on January 1 of the approval year, it stays locked at that rate for as long as you own and occupy the home. It also exempts you from excess levies and a part of regular levies. Eligibility depends on household income.

Senior and Disabled Tax Deferral: Qualified residents can delay up to 80% of their property taxes and special assessments based on current home equity. Eligibility depends on household income, home equity, age, and disability. 

Property Tax Deferral on Limited Income: Has your cash flow changed recently? In this program, the second tax payment due in October is deferred for up to 40% of your home equity. You must have owned the home for at least five years. After that, qualification is based on household income and equity. 

Destroyed Property: Washington sometimes experiences extreme weather, like wildfires, volcano eruptions, or earthquakes. What happens if one of these uncontrollable acts of nature happens to your home? Tax relief through an assessment reduction or tax abatement is available for:

• Any home destroyed in a natural disaster
• Any home damaged in a way that its value drops by more than 20%
• Any home inside a state- or county-declared disaster area

Tax Assistance for Widowed Veterans: The Department of Revenue runs a tax program for senior citizens and disabled persons who are widows or a veteran. It is a grant-based program.

Value of Remodel Exemption: This limited-time exemption is for improving single-family homes, like adding a patio or a new room. You could qualify for a three-year property tax exemption on the value added from the improvements. You have to apply before starting the remodel project.

Recent Changes

Understanding Washington State’s property taxes requires familiarity with local regulations and practices, which can vary between counties and municipalities. Tax laws and regulations can change over time. Stay updated on recent developments or reforms in Washington State’s property tax system.

As always, consult with local tax authorities or professionals for specific inquiries or assistance. This article is intended as information only and should not be used as tax advice.