Property Tax Basics in Washington: What Homeowners Need to Know

Complete guide to Washington property taxes: how they work, assessment process, payment options, appeals, exemptions, and Seattle-specific rates and information.

Tags:property-tax, washington, seattle, homeownership, tax-relief, assessment
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Your first property tax bill arrives. $9,000. You expected $6,000. What happened? Why is it so high? Can you appeal? When do you pay? What if you can't afford it?

Property taxes in Washington are complex. No state income tax means higher property taxes. Rates vary by location. Assessments change annually. Understanding how property taxes work helps you budget, avoid surprises, and potentially save money.

This guide covers everything you need to know about Washington property taxes, from how they're calculated to how to appeal your assessment, with specific Seattle-area information and examples.

Table of Contents

How Property Taxes Work in Washington

No State Income Tax

Washington is one of 9 states with no state income tax:

  • No tax on wages
  • No tax on investment income
  • No tax on retirement income

Instead, Washington relies on:

  • Sales tax (high: 10.25% in Seattle)
  • Property tax (moderate to high)
  • Business taxes

Result:

  • Property taxes are higher than in states with income tax
  • But total tax burden may be similar or lower

Property Tax Formula

Your property tax = Assessed value × Tax rate

Example:

  • Assessed value: $900,000
  • Tax rate: 1.0% (varies by location)
  • Property tax: $9,000/year

Two factors determine your tax:

  1. Assessed value (what your property is worth)
  2. Tax rate (set by local governments)

Who Collects Property Taxes

Local governments:

  • County
  • City
  • School district
  • Fire district
  • Library district
  • Port district
  • Other special districts

Each sets its own levy:

  • School district: Largest portion (40–50%)
  • County: 20–30%
  • City: 15–25%
  • Other districts: 10–20%

Total tax rate = Sum of all levies

Seattle example:

  • School district: 0.45%
  • City of Seattle: 0.25%
  • King County: 0.20%
  • Port of Seattle: 0.05%
  • Other districts: 0.05%
  • Total: 1.0%

Property Assessment

How Your Property Is Assessed

County assessor determines value:

  • King County Assessor (for Seattle area)
  • Snohomish County Assessor
  • Pierce County Assessor
  • Etc.

Assessment methods:

1. Sales comparison:

  • Most common method
  • Compares your home to recent sales
  • Adjusts for differences (size, condition, location)

2. Cost approach:

  • Estimates cost to rebuild
  • Minus depreciation
  • Plus land value
  • Used for unique properties

3. Income approach:

  • For rental properties
  • Based on rental income
  • Capitalization rate

For most homes: Sales comparison

Assessment Cycle

Annual revaluation:

  • Washington requires annual revaluation
  • Assessor reviews all properties every year
  • Adjusts values based on market changes

Physical inspection:

  • Every 6 years (required by law)
  • Assessor visits property
  • Verifies size, condition, improvements
  • Updates records

Between inspections:

  • Assessor uses market data
  • Adjusts values based on sales
  • May not reflect your specific property

Assessment Notice

When you receive it:

  • Mailed in late April or early May
  • Shows assessed value for current year
  • Shows change from previous year

What it shows:

  • Land value
  • Improvement value (building)
  • Total assessed value
  • Previous year's value
  • Change in value

Seattle example:

  • Land value: $400,000
  • Improvement value: $500,000
  • Total assessed value: $900,000
  • Previous year: $850,000
  • Change: +$50,000 (+5.9%)

Important:

  • Assessed value ≠ Market value
  • Assessed value is typically 90–100% of market value
  • Used for tax calculation only

Factors Affecting Assessment

What increases assessment:

  • Home improvements (addition, remodel)
  • New construction
  • Market appreciation
  • Neighborhood improvements

What decreases assessment:

  • Damage or deterioration
  • Market depreciation
  • Removal of structures

What doesn't affect assessment:

  • Cosmetic updates (paint, carpet)
  • Landscaping (usually)
  • Personal property (furniture, appliances)
  • Your purchase price (unless recent)

Tax Rate and Levy

How Tax Rate Is Determined

Each taxing district sets levy:

  • School district: "We need $100 million"
  • County: "We need $50 million"
  • City: "We need $75 million"
  • Etc.

Tax rate = Levy ÷ Total assessed value

Example:

  • School district levy: $100 million
  • Total assessed value in district: $10 billion
  • School district tax rate: $100M ÷ $10B = 1.0% = $10 per $1,000

Your tax = Your assessed value × Tax rate

Example:

  • Your assessed value: $900,000
  • Tax rate: 1.0%
  • Your tax: $900,000 × 1.0% = $9,000

Levy Limits

Washington has levy limits:

  • Protects taxpayers from unlimited increases
  • Limits how much taxes can increase each year

1% limit:

  • Regular levies can increase max 1% per year
  • Plus new construction
  • Regardless of property value increases

Example:

  • Last year's levy: $100 million
  • This year's levy: Max $101 million (1% increase)
  • Even if property values increased 10%

Exceptions:

  • Voter-approved levies (no limit)
  • Bonds (no limit)
  • New construction (added to base)

Result:

  • If property values increase faster than 1%, tax rate decreases
  • If property values increase slower than 1%, tax rate increases

Voter-Approved Levies

Types:

1. Excess levies:

  • Above the 1% limit
  • Require voter approval
  • Common for schools
  • Temporary (1–4 years)

2. Bonds:

  • For capital projects (new schools, roads, etc.)
  • Require voter approval
  • Long-term (20–30 years)

3. Lid lifts:

  • Permanently increase levy limit
  • Require voter approval
  • Rare

Seattle example:

  • Seattle voters approved school levy in 2022
  • Adds $0.50 per $1,000 to tax rate
  • For 4 years
  • Increases your tax by $450/year on $900,000 home

When and How to Pay

Payment Schedule

Two options:

Option 1: Pay in full (April 30)

  • Entire year's tax due April 30
  • No penalty if paid by April 30
  • Most common

Option 2: Pay in two installments

  • First half due April 30
  • Second half due October 31
  • No penalty if paid on time
  • Convenient for budgeting

Late payment penalties:

  • After April 30 (first half): 1% penalty per month
  • After October 31 (second half): 1% penalty per month
  • Plus interest
  • Can add up quickly

Seattle example:

  • Annual tax: $9,000
  • Option 1: Pay $9,000 by April 30
  • Option 2: Pay $4,500 by April 30, $4,500 by October 31

How to Pay

Methods:

1. Online:

  • County treasurer website
  • King County: kingcounty.gov/depts/finance-business-operations/treasury
  • Credit card (fee: 2.5%)
  • E-check (free)
  • Most convenient

2. Mail:

  • Check or money order
  • Mail to county treasurer
  • Postmark by due date
  • Allow time for delivery

3. In person:

  • County treasurer office
  • Check, cash, or credit card
  • During business hours

4. Escrow (if you have mortgage):

  • Lender pays from escrow account
  • You pay 1/12 each month with mortgage payment
  • Lender ensures payment on time
  • Most common for mortgaged homes

Escrow Account

How it works:

  • Lender estimates annual property tax
  • Divides by 12
  • Adds to monthly mortgage payment
  • Holds in escrow account
  • Pays county when due

Example:

  • Annual property tax: $9,000
  • Monthly escrow: $750
  • Added to mortgage payment
  • Lender pays $9,000 to county in April

Benefits:

  • Don't have to remember to pay
  • Spread cost over 12 months
  • Lender ensures payment on time
  • Avoid late penalties

Drawbacks:

  • Less control
  • Escrow account may require cushion
  • Can't earn interest on money

Escrow analysis:

  • Lender reviews escrow annually
  • Adjusts monthly payment if needed
  • If taxes increase, payment increases
  • If taxes decrease, payment decreases (rare)

Property Tax Statement

When you receive it:

  • Mailed in February or March
  • Shows tax due for current year
  • Shows payment options and due dates

What it shows:

  • Assessed value
  • Tax rate for each district
  • Total tax due
  • Payment options
  • Due dates
  • Parcel number

Keep for records:

  • Need for taxes (deductible)
  • Need for selling
  • Need for refinancing

Appealing Your Assessment

When to Appeal

Consider appealing if:

  • Assessed value is higher than market value
  • Assessor made error (wrong square footage, etc.)
  • Property has damage or defects not reflected
  • Comparable sales don't support assessment

Don't appeal if:

  • You just don't want to pay taxes
  • Assessed value is close to market value
  • You have no evidence to support lower value

Success rate:

  • About 30–40% of appeals result in reduction
  • Average reduction: 5–10%
  • Worth it if you have good evidence

How to Appeal

Step 1: Review assessment notice

  • Received in late April or early May
  • Check for errors (square footage, bedrooms, etc.)
  • Compare to recent sales in your neighborhood

Step 2: Gather evidence

  • Recent sales of comparable homes
  • Appraisal (if you have one)
  • Photos of damage or defects
  • Repair estimates
  • Any evidence of lower value

Step 3: File appeal

  • Deadline: July 1 (or 60 days from assessment notice, whichever is later)
  • File with county Board of Equalization
  • Online or by mail
  • No fee

Step 4: Attend hearing

  • Informal hearing with Board
  • Present your evidence
  • Assessor presents their evidence
  • Board makes decision

Step 5: Receive decision

  • Usually within 30–60 days
  • If approved: Assessment reduced, tax reduced
  • If denied: Assessment stays same
  • Can appeal to State Board (if denied)

Seattle example:

  • Assessed value: $900,000
  • Market value (based on comps): $850,000
  • File appeal with evidence
  • Board reduces assessment to $850,000
  • Tax savings: $500/year (at 1.0% rate)

Tips for Successful Appeal

1. Act quickly:

  • Deadline is July 1
  • Don't wait until last minute
  • Gather evidence early

2. Use comparable sales:

  • Most persuasive evidence
  • Find 3–5 recent sales (last 6 months)
  • Similar size, age, condition, location
  • Show your home is worth less

3. Document errors:

  • Wrong square footage
  • Wrong number of bedrooms/bathrooms
  • Wrong lot size
  • Assessor will correct errors

4. Show damage or defects:

  • Foundation cracks
  • Roof damage
  • Plumbing issues
  • Photos and repair estimates

5. Be professional:

  • Polite and respectful
  • Stick to facts
  • Don't complain about taxes
  • Focus on value, not tax amount

6. Consider hiring appraiser:

  • If assessment is significantly high
  • Appraisal costs $400–$600
  • May be worth it for large reduction

Property Tax Exemptions and Relief

Senior Citizen and Disabled Exemption

Who qualifies:

  • Age 61+ OR disabled
  • Income limits (adjusted annually)
  • Own and occupy home

Income limits (2025):

  • Full exemption: Income under $45,000
  • Partial exemption: Income $45,000–$65,000
  • No exemption: Income over $65,000

Benefits:

  • Full exemption: Up to $60,000 of assessed value exempt
  • Partial exemption: Up to $30,000 of assessed value exempt
  • Reduces tax by $600–$1,200/year

How to apply:

  • File with county assessor
  • Deadline: December 31
  • Renew annually
  • Provide income documentation

Seattle example:

  • Assessed value: $900,000
  • Senior with income $40,000
  • Exempt: $60,000
  • Taxable value: $840,000
  • Tax savings: $600/year (at 1.0% rate)

Disabled Veteran Exemption

Who qualifies:

  • Honorably discharged veteran
  • 80%+ service-connected disability
  • Own and occupy home

Benefits:

  • First $300,000 of assessed value exempt
  • Significant tax savings

How to apply:

  • File with county assessor
  • Provide VA disability rating
  • One-time application (no renewal)

Seattle example:

  • Assessed value: $900,000
  • Disabled veteran (80%+ disability)
  • Exempt: $300,000
  • Taxable value: $600,000
  • Tax savings: $3,000/year (at 1.0% rate)

Property Tax Deferral Program

Who qualifies:

  • Age 60+ OR disabled
  • Income limits (higher than exemption)
  • Own and occupy home
  • Equity in home

How it works:

  • State pays your property tax
  • You repay when you sell or die
  • Interest charged (3–5%)
  • Lien placed on property

Benefits:

  • Don't have to pay tax now
  • Helps seniors on fixed income
  • Can stay in home

Drawbacks:

  • Debt accumulates
  • Interest charged
  • Reduces equity
  • Heirs must repay

How to apply:

  • File with Washington State Department of Revenue
  • Deadline: April 15
  • Renew annually

Other Exemptions

Historic property:

  • For designated historic properties
  • Special valuation
  • Reduces tax
  • Must maintain historic character

Current use (farmland, forest land):

  • For agricultural or forest land
  • Valued at current use, not highest and best use
  • Significantly reduces tax
  • Must meet requirements

Nonprofit property:

  • For property owned by nonprofits
  • Used for charitable purposes
  • Fully exempt

Seattle-Specific Information

Seattle Property Tax Rates

Average rate: 1.0–1.1%

  • Varies by neighborhood
  • Depends on special districts

Breakdown (typical):

  • Seattle Public Schools: 0.45%
  • City of Seattle: 0.25%
  • King County: 0.20%
  • Port of Seattle: 0.05%
  • Other districts: 0.05–0.10%
  • Total: 1.0–1.1%

Comparison:

  • Seattle: 1.0–1.1%
  • Bellevue: 0.9–1.0%
  • Redmond: 0.9–1.0%
  • Tacoma: 1.1–1.2%
  • National average: 1.1%

Seattle is moderate:

  • Not the highest in WA
  • Not the lowest
  • About average for Puget Sound

Recent Levy Increases

Seattle voters have approved:

  • School levies (2022, 2025)
  • Transportation levy (2024)
  • Parks levy (2024)
  • Housing levy (2023)

Result:

  • Tax rate has increased
  • From 0.9% in 2020 to 1.1% in 2025
  • Expect continued increases

Future levies:

  • Schools will need more funding
  • Transportation needs
  • Affordable housing
  • Voters decide

Seattle home values:

  • 2020: $700,000 (median)
  • 2021: $850,000 (+21%)
  • 2022: $900,000 (+6%)
  • 2023: $875,000 (–3%)
  • 2024: $900,000 (+3%)
  • 2025: $925,000 (+3%)

Assessment trends:

  • Follow market trends
  • Lag by 6–12 months
  • Annual revaluation

Tax impact:

  • If values increase faster than 1%, tax rate decreases
  • If values increase slower than 1%, tax rate increases
  • Your tax may increase even if rate decreases (if your value increases more than average)

Neighborhood Variations

Property taxes vary by neighborhood:

Capitol Hill:

  • Assessed value: $800,000 (median)
  • Tax rate: 1.05%
  • Annual tax: $8,400

Ballard:

  • Assessed value: $900,000 (median)
  • Tax rate: 1.05%
  • Annual tax: $9,450

Queen Anne:

  • Assessed value: $1,200,000 (median)
  • Tax rate: 1.05%
  • Annual tax: $12,600

West Seattle:

  • Assessed value: $850,000 (median)
  • Tax rate: 1.05%
  • Annual tax: $8,925

Differences due to:

  • Home values (biggest factor)
  • Special districts (small factor)

Budgeting for Property Taxes

How Much to Budget

Rule of thumb: 1% of home value

  • $900,000 home: $9,000/year
  • $750/month
  • Add to monthly housing cost

More accurate: Check tax rate

  • Look up your address on county website
  • See actual tax rate
  • Calculate: Assessed value × Tax rate

Plan for increases:

  • Taxes increase over time
  • Voter-approved levies
  • Property value increases
  • Budget extra 3–5% per year

Seattle example:

  • Current tax: $9,000/year
  • Expected increase: 3% per year
  • Year 1: $9,000
  • Year 2: $9,270
  • Year 3: $9,548
  • Year 4: $9,835
  • Year 5: $10,130

Saving for Property Taxes

If you pay directly (not escrow):

Option 1: Monthly savings

  • Divide annual tax by 12
  • Save each month
  • Have money when due
  • Example: $9,000 ÷ 12 = $750/month

Option 2: Lump sum

  • Save throughout year
  • Pay in April
  • Requires discipline

Where to save:

  • High-yield savings account
  • Money market account
  • Separate from other savings
  • Earn interest while saving

If you pay via escrow:

  • Lender handles it
  • Included in monthly payment
  • No separate savings needed

Tax Deduction

Property taxes are deductible:

  • Federal income tax deduction
  • Itemized deductions
  • Up to $10,000 limit (SALT cap)
  • Includes state/local taxes

SALT cap:

  • State and Local Tax deduction
  • Limited to $10,000 total
  • Includes property tax + state income tax (or sales tax)
  • Washington has no income tax, so full $10,000 for property tax

Example:

  • Property tax: $9,000
  • Deductible: $9,000 (under $10,000 limit)
  • Tax bracket: 24%
  • Tax savings: $2,160

If over $10,000:

  • Property tax: $12,000
  • Deductible: $10,000 (capped)
  • Not deductible: $2,000
  • Tax bracket: 24%
  • Tax savings: $2,400 (not $2,880)

Keep records:

  • Property tax statements
  • Proof of payment
  • Need for tax return

Summary: Key Takeaways

  • Washington has no state income tax, so property taxes are higher (but total tax burden may be similar)
  • Property tax = Assessed value × Tax rate (typically 1.0–1.1% in Seattle)
  • County assessor determines assessed value annually based on market sales
  • Tax rate is sum of levies from all taxing districts (school, county, city, etc.)
  • Pay in full by April 30 or in two installments (April 30 and October 31)
  • Late payment penalty: 1% per month plus interest
  • Most mortgaged homes pay via escrow (1/12 each month with mortgage payment)
  • Can appeal assessment if value is too high (deadline: July 1)
  • Exemptions available for seniors, disabled, and disabled veterans
  • Budget 1% of home value for property taxes, plan for 3–5% annual increases
  • Property taxes are deductible on federal taxes (up to $10,000 SALT cap)

Next Steps

  1. Find your property tax information:
    • King County: kingcounty.gov/depts/assessor
    • Look up your address
    • See assessed value and tax amount
  2. Review assessment notice (received in April/May)
  3. Check for errors (square footage, bedrooms, etc.)
  4. Consider appeal if value is too high (deadline: July 1)
  5. Set up payment method:
    • Escrow (if mortgaged)
    • Online payment
    • Automatic payment
  6. Budget for property taxes:
    • Calculate monthly amount
    • Set up automatic savings
    • Plan for increases
  7. Check for exemptions:
    • Senior/disabled exemption
    • Disabled veteran exemption
    • Apply if eligible
  8. Keep records for tax deduction

Additional Resources

King County:

  • Assessor: kingcounty.gov/depts/assessor | (206) 296-7300
  • Treasurer: kingcounty.gov/depts/finance-business-operations/treasury | (206) 263-2890
  • Board of Equalization: kingcounty.gov/depts/assessor/appeals

Washington State:

  • Department of Revenue: dor.wa.gov | (360) 705-6705
  • Property tax information: dor.wa.gov/taxes-rates/property-tax
  • Exemptions and relief: dor.wa.gov/property-tax-exemptions

Other counties:

  • Snohomish County: snohomishcountywa.gov/182/Assessor
  • Pierce County: piercecountywa.gov/199/Assessor-Treasurer
  • Kitsap County: kitsapgov.com/assessor

This article provides general information about Washington property taxes and should not be considered tax or legal advice. Tax laws and rates change regularly. Consult with a tax professional for guidance specific to your situation.

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