WashingtonWashington sets property tax relief rules and labels the state school levy
Washington’s property tax law sets income-based relief rules for eligible residents and requires tax statements to label the state property tax as the school levy.
What it does
Eligible older, disabled, and certain veteran homeowners may owe less property tax, with relief based on household income and home value.
For taxes collected in 2027 and later, the three income limits are tied to 60, 70, and 80 percent of each county’s median household income.
Property tax statements must identify the state property tax as the “state school levy.”
The state school property tax rate is $2.075355 per $1,000 of assessed value for 2027 tax collections.
Argument forHigher county income limits could let more older, disabled, and qualifying veteran homeowners receive property tax relief.
Argument againstBroader income limits could let more homeowners claim tax relief, which may shift some property tax costs to other taxpayers.
More detail
Eligible residents may receive a property tax exemption based on their income. The program covers residents age 61 or older, people retired because of disability, and certain veterans who meet the other requirements. Residents must meet the program’s age, disability, or veteran status rules, own the home, and use it as their main residence. The amount of relief depends on income and home value; the lowest income tier is exempt from excess property taxes and some voter-approved regular taxes. The act applies to taxes collected in 2027 and later.
Income limits for the property tax relief program are set as shares of county median income. The limits determine who may qualify for the property tax exemption program. For each tier, the limit is the greater of the prior year’s limit or the stated share of county median household income. The stated limits apply to taxes collected in 2027 and later and are adjusted every three years beginning August 1, 2026.
County treasurers must label the state property tax as the “state school levy” on tax statements. The label must appear on each property tax statement. The act applies to taxes collected in 2027 and later.
The state property tax rate is set at $2.075355 per $1,000 of assessed value. The rate applies to the state property tax that supports public schools. The rate is based on the assessed value of taxable property across Washington. For taxes collected in 2028 and later, the state levy is subject to property tax growth limits. The stated rate applies to taxes collected in 2027; growth limits apply to the state levy for 2028 and later.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 23Effective date 6/11/2026.Latest
- Mar 23Chapter 163, 2026 Laws.Major
- Mar 23Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 11Speaker signed.Major
- Mar 11President signed.Passed House
- Mar 10Passed final passage; yeas, 41; nays, 8; absent, 0; excused, 0.Passed Senate
- Vote recorded Final Passage as Amended by the House (#19). Result: pass.Upper
- Mar 10Senate concurred in House amendments.
- Mar 6Third reading, passed; yeas, 93; nays, 2; absent, 0; excused, 3.Minor
- Vote recorded Final Passage as Amended by the House (#8). Result: pass.Lower
- Mar 6Rules suspended. Placed on Third Reading.Minor
- Mar 6Floor amendment(s) adopted.
- Mar 3Rules Committee relieved of further consideration. Placed on second reading.Minor
- Mar 2Referred to Rules 2 Review.Minor
- Mar 2Minority; without recommendation.Minor
- Mar 2Minority; do not pass.Minor
- Mar 2FIN - Majority; do pass.Minor
- Mar 2Executive action taken in the House Committee on Finance at 8:00 AM.
- Feb 27Public hearing in the House Committee on Finance at 8:00 AM.
- Feb 17First reading, referred to Finance.Minor
- Feb 16Third reading, passed; yeas, 41; nays, 8; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage (#12). Result: pass.Upper
- Feb 16Rules suspended. Placed on Third Reading.Minor
- Feb 16Floor amendment(s) adopted.
- Feb 161st substitute bill substituted (WM 26).Major
- Feb 12Placed on second reading by Rules Committee.Minor
- Feb 9Passed to Rules Committee for second reading.
- Feb 9Minority; without recommendation.Minor
- Feb 9WM - Majority; 1st substitute bill be substituted, do pass.Major
- Feb 9Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.
- Jan 22Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
- Jan 15First reading, referred to Ways & Means.Introduced
Taxes & BudgetEducation