Washington's Open Space Taxation Act lets qualifying open space, farm, and timber land be assessed on current use rather than highest and best use. If classification ends, additional tax generally covers seven or four prior years, plus interest and often a 20% penalty.

What land can be classified, and how does the tax change?

The program is in Chapter 84.34 RCW. The Department of Revenue's September 2026 publication, Understanding the Open Space Taxation Act, is the official consumer explanation. It identifies three categories:

• Open space land, including land preserved for conservation, wildlife, historic, natural-resource, or recreation benefits, and some "farm and agricultural conservation" land that was farmed and may return to farming.
• Farm and agricultural land devoted to commercial agricultural purposes. The owner has to show an ongoing intent to make a monetary profit from producing an agricultural product. Operations of less than 20 acres also have to meet minimum income requirements that vary with acreage.
• Timber land of five acres or more devoted to growing and harvesting timber for commercial purposes. Some counties have merged this classification into the designated forest land program under Chapter 84.33 RCW, so timber land classification may be unavailable in those counties.

An owner or contract vendee may apply, and all owners have to sign. Applications may be filed any day of the year. If approved, current-use assessment begins on January 1 of the year after the application year. An application received in 2026, for example, would be approved for assessment in 2027, which would affect taxes payable in 2028. Apply at the county assessor's office. Open space and timber applications may also go through the county legislative authority. A city or county may charge a processing fee.

The assessor keeps two values: the fair market value if the land were not classified, and the current-use value. Property taxes on the classified land are assessed on the current-use value. Buildings and portions of a parcel that are not classified are still taxed in the ordinary way.

Classification lasts until the owner requests removal or withdrawal, the use no longer meets the conditions, the parcel is conveyed to a tax-exempt entity, or the parcel is conveyed to a new owner who has not signed a Notice of Continuance.

What happens at a sale, and what tax can come due?

When classified land is sold or transferred, the seller becomes liable for the additional tax, interest, and penalty unless the new owner signs a Notice of Continuance, which is attached to or shown on the real estate excise tax affidavit. The county auditor cannot accept a conveyance of classified land unless that notice has been signed or the additional tax, interest, and penalty have been paid. The assessor then decides whether the land still qualifies. Signing the notice is not a guarantee of continued classification.

If classification is removed, additional tax, interest, and a penalty apply unless a statutory exception in RCW 84.34.108(6) fits. DOR describes the additional tax as the difference between the tax paid as classified land and the tax that would have been paid if the land had not been classified. Taxes in the year of removal are prorated. That additional tax is generally payable for:

• The last seven years, for open space and timber removals.
• The last four years, for farm and agricultural removals.

Interest is charged at the same rate as delinquent property taxes. The penalty is 20% of the additional tax plus interest. If the land has been classified for at least 10 years and the owner requests withdrawal, that 20% penalty is not applied. The additional tax and interest can still be due.

A buyer of acreage, a hobby farm, timbered land, or a house with a large classified parcel should ask, before closing:

• Whether any of the land is in current use or designated forest land, and under which category.
• Whether the buyer can and will sign a Notice of Continuance, and whether the assessor is likely to approve continued use.
• What additional tax, interest, and penalty would be if classification ends at sale or soon after.
• How current-use status interacts with the flat 1.28% state real estate excise tax rate that can apply to qualifying agricultural and timberland sales.

If the assessor later removes the classification, the owner may appeal to the county board of equalization by July 1 of the year of the determination, or within 30 days of the assessor's mailed notice, or within a longer local period of up to 60 days, whichever is later.

FAQ

Does current-use classification reduce the tax on my house as well as the land?

Taxes on classified land are assessed on the current-use value rather than highest and best use. Buildings and land that are not classified are still assessed in the ordinary way. Ask the assessor how your parcel is split.

What if I buy classified land and want to keep the lower assessment?

Sign the Notice of Continuance on the real estate excise tax affidavit. The assessor still has to determine that the land remains qualified. If you do not sign, the seller becomes liable for the additional tax, interest, and penalty at the time of sale.

How far back does the additional tax go if classification is removed?

Generally seven years for open space or timber land, and four years for farm and agricultural land, plus interest. A 20% penalty often applies, unless the land has been classified at least 10 years and the owner requests withdrawal.

When would a new application start to change my taxes?

If an application is approved, current-use assessment begins on January 1 of the following year, and the change shows up on the taxes payable the year after that.

Next step

If you are buying or selling acreage, farm, or timber land in Washington, ask the county assessor whether the parcel is classified and what a Notice of Continuance or a removal would cost. A licensed local real estate agent who handles rural property can help you build those questions into the purchase agreement.

Sources: Washington Department of Revenue, Understanding the Open Space Taxation Act (September 2026, PDF); Chapter 84.34 RCW; Washington Department of Revenue, property tax.

The Washington State Housing Finance Commission's Home Advantage program is open to buyers with household income up to $215,000, including repeat buyers. It pairs a first mortgage with down payment assistance of 3%, 4%, or 5% of the loan amount, at 0% interest. A free Commission homebuyer education class is required.

How do Home Advantage and House Key Opportunity differ?

The Commission does not make the loan directly to you. Participating lenders qualify, process, and underwrite it. The Commission's consumer site, Here to Home, describes two main first-mortgage programs, and every Commission home loan comes with down payment assistance in the form of a second loan.

Home Advantage is the broader program:

• Household annual income may not exceed $215,000, statewide.
• You do not have to be a first-time homebuyer.
• The home has to be your principal residence. Eligible property types include a one-unit single-family home, a townhome, a condominium, a manufactured home, or a two-unit (duplex) home, subject to the loan's underwriting rules.
• Down payment assistance is 3%, 4%, or 5% of the first-mortgage amount, at 0% interest. Funds can be used for down payment and closing costs.
• The assistance loan is payment-deferred. There is no separate monthly bill. The balance is due when you sell, refinance, or transfer the property, stop using it as your principal residence, or pay off the first mortgage, at 30 years or earlier.

House Key Opportunity is aimed at first-time buyers with lower, county-based income limits. The Commission defines a first-time homebuyer as someone who has not owned and occupied a primary residence at any time in the past three years. That first-time rule is waived if you buy in a federally designated Target Area or if you are an honorably discharged veteran. House Key can be used for a one-unit home, townhome, condominium, or manufactured home. It also offers special terms for some Habitat for Humanity and community land trust purchases, with a lower income cap based on area median income. A Commission-trained lender will apply the current county income and purchase-price rules, which change.

Both programs require a Commission-sponsored homebuyer education class. Every borrower who will sign the note and the deed of trust needs a certificate. The Commission offers free in-person and virtual classes around the state. A $50 online self-study course from eHome America is also described as an option. The certificate is valid for two years. Taking the class early, before you are under contract, avoids a last-minute delay.

Other assistance, and how to start

The Commission also administers additional down payment programs that have to be paired with Home Advantage or House Key. Those include needs-based assistance, a veterans program, disability-related assistance, and local partners such as programs in East King County and in the city of Bellingham. Income limits, interest rates, and maximum assistance amounts differ, and some of those figures are updated periodically. A Commission-trained loan officer, not a general internet summary, is the place to confirm which option currently fits a household. The Commission can be reached at 800-767-4663 or through Here to Home.

Practical points before you apply:

• Assistance is not a grant. Even a 0% loan has to be repaid when you sell, refinance, move out, or pay off the first mortgage.
• You will still need to qualify for the first mortgage under the lender's and the loan type's credit, debt-to-income, and appraisal rules.
• If you already own another home, Home Advantage may still be available if that other home was not financed through the Commission and you intend to occupy the new home, subject to the loan program's guidelines.
• Manufactured homes and community land trust or Habitat purchases can be eligible, but they have extra underwriting steps.

Start with a class and a Commission-trained lender, not with a nonrefundable deposit to an unlicensed finder. A licensed local real estate agent who regularly closes Commission loans can also help you write an offer that reflects down payment assistance timelines. Rates, income limits, and available funds can change with the market. The Commission says Home Advantage funds are generally available on an ongoing basis, subject to market rates and conditions. Confirm the current interest rate and assistance options with a participating lender before you rely on a quote from an earlier month.

FAQ

Do I have to be a first-time buyer for Home Advantage?

No. Home Advantage is open to repeat buyers, with a statewide household income limit of $215,000. House Key Opportunity generally requires first-time buyer status, unless you buy in a Target Area or are an honorably discharged veteran.

Is the down payment assistance a grant?

No. It is a second loan. On Home Advantage, the standard assistance is 3%, 4%, or 5% of the first-mortgage amount at 0% interest, with no monthly payment until it comes due at sale, refinance, move-out, or payoff of the first mortgage.

Is the homebuyer education class required?

Yes, for Commission home loan programs. Each person who will sign the note and deed of trust needs a certificate from a Commission-sponsored class. The certificate is valid for two years.

Who do I contact to apply?

A participating, Commission-trained lender. The Commission does not make the loan directly. Here to Home and the Commission (800-767-4663) can help you find a class and a lender.

Next step

Ask a Commission-trained lender, and a licensed local real estate agent, whether Home Advantage or House Key Opportunity fits your income and the property you want to buy, and schedule the required homebuyer education class before you write an offer.

Sources: Washington State Housing Finance Commission, Here to Home, homebuyers; Here to Home, down payment assistance; Washington State Housing Finance Commission.

Washington property owners who disagree with the assessor's valuation can appeal to the county board of equalization. The deadline is the later of July 1 of the assessment year, or 30 days after the Change of Value Notice is issued, and some counties allow 60 days. A letter or phone call is not a substitute for the official petition.

What are you appealing, and when is the deadline?

State law requires assessors to value taxable property at 100% of its true and fair market value, according to the property's highest and best use. Market value, as the Department of Revenue explains it, is the amount a willing and unobligated buyer would pay a willing and unobligated seller. The assessor may use a sales comparison, a cost approach, an income approach for income-producing property, or a combination of those methods. Real property is reassessed each year, with a physical inspection at least every six years. A Change of Value Notice is sent when the assessed value changes.

Appraised (market) value and assessed value can differ if you already receive an exemption or other reduction. The appeal is about whether the value is at true and fair market value, not simply whether the tax bill feels high. Comparing only the percentage increase, or only another parcel's assessment, is not enough. You have to show, with market evidence, that your parcel is not valued at 100% of true and fair value.

File the "Taxpayer Petition for Review of Property Valuation Determination" in the county where the property sits. Forms are available from DOR, the county board of equalization, and the assessor's office. Only the taxpayer or entity listed on the assessment roll, their authorized agent, or the property owner may file. If you mail the petition, it has to be postmarked by midnight of the deadline. You can also hand-deliver it and have it date-stamped.

The deadline is the later of July 1 of the assessment year, or 30 days after the Change of Value Notice is issued. DOR's example: a notice postmarked July 20 produces an August 19 deadline. Some counties allow 60 days from the notice. Confirm the local rule with that county's board of equalization. There are narrow reasons a late filing can be waived, such as a death or serious illness, an absence from the home where the notice was mailed, reliance on incorrect written advice from the board or assessor, a postal loss, or, for a business, the absence of the employee who handles property taxes. A request to waive the deadline has to be made within a reasonable time, and the board's decision on a waiver is not appealable.

In limited situations the board may reconvene, for example if you did not receive a change-of-value notice at least 15 days before the deadline, if you bought the property after July 1 and on or before December 31 and the sale price was less than 90% of assessed value in an arm's-length sale, or in certain omitted-property or 100% overvaluation cases. Those paths have their own later deadlines, including April 30 of the following year for some of them. Ask the county board before you assume a late appeal is closed.

What evidence works, and what happens at the hearing?

The petition has to state specific market reasons the assessor's value is incorrect. "The value is too high" or "the taxes are excessive" is not enough. Useful evidence includes a recent appraisal, documented deterioration, and sales of similar properties that closed near the assessment or appraisal date. For each comparable sale, include the parcel number, address, date of sale, sale price, and the characteristics that make it comparable, such as location, lot size, living area, year built, condition, and outbuildings. Maps, photographs, written repair estimates, and third-party documentation of problems can help.

Submit your evidence at least 21 business days before the hearing. The clerk will notify you of the date, location, and time. The hearing is informal, and owners may represent themselves. Both you and the assessor may testify and offer written evidence, and each may rebut the other. By law, the assessor is presumed correct. The taxpayer has the burden to show the assessed value is not correct, by clear and convincing evidence.

The board has to issue a written decision within 45 days of the hearing. If you disagree, you may appeal to the state Board of Tax Appeals within 30 calendar days of the postmarked date of the board's decision. You may also pay the tax under protest and file a refund lawsuit in Superior Court under Chapter 84.68 RCW. Pay the tax when it is due even if an appeal is pending. If the value is reduced, the treasurer will adjust the bill.

You can still talk with the assessor's office about the valuation, and many disagreements are resolved there. Filing the petition on time is what preserves the appeal if that conversation does not end the dispute. Keep the assessor informed of your mailing address, because the notice goes to the name and address on the assessment roll.

FAQ

When is the deadline to appeal a Washington property assessment?

The later of July 1 of the assessment year, or 30 days after the Change of Value Notice is issued. Some counties allow 60 days from the notice. Confirm the rule with your county board of equalization.

Can I appeal with a letter or a phone call?

No. The Department of Revenue says a letter or phone call will not be accepted as a substitute for the official petition form.

Who has the burden of proof?

The assessor's value is presumed correct. You have to present clear and convincing market evidence that the property is not valued at 100% of true and fair market value.

What if I disagree with the board of equalization?

You may appeal to the state Board of Tax Appeals within 30 calendar days of the postmarked date of the board's decision, or pay under protest and sue in Superior Court for a refund.

Next step

If a Change of Value Notice looks wrong, calendar the county deadline, complete the official petition, and gather comparable sales or an appraisal. A licensed local real estate agent can help you read recent sales; the county board of equalization is where the appeal is filed.

Sources: Washington Department of Revenue, appealing your property assessment to the county board of equalization; RCW 84.48; WAC 458-14-056.

Washington charges a graduated real estate excise tax on the sale of real property. The state rates are 1.10%, 1.28%, 2.75%, and 3.00% on portions of the selling price, and local REET is added. The seller usually pays; if the seller does not, the buyer is responsible.

What are the current state rates, and who pays?

The Washington Department of Revenue administers the state tax under Chapter 82.45 RCW. For deeded transfers from January 1, 2023, through December 31, 2026, the state rates apply to portions of the selling price as follows:

• 1.10% on the portion that is $525,000 or less.
• 1.28% on the portion from $525,000.01 through $1,525,000.
• 2.75% on the portion from $1,525,000.01 through $3,025,000.
• 3.00% on the portion above $3,025,000.

The rates are marginal. A $600,000 house is not taxed at 1.28% on the entire price. The first $525,000 is taxed at 1.10%, and only the remaining $75,000 is taxed at 1.28%. Qualified sales of agricultural land and timberland are an exception: they stay at a flat state rate of 1.28%, if the buyer will continue a qualifying use and the county assessor signs the Notice of Continuance on the affidavit.

Beginning January 1, 2027, the dollar thresholds adjust, as RCW 82.45.060 requires every four years. DOR has already published the new brackets: $551,000, $1,551,000, and $3,051,000, with the same four rates, and with the agricultural and timberland flat rate remaining 1.28%. If you are scheduling a closing around New Year's 2027, confirm which set of thresholds applies to the date of sale.

Local REET is separate and has to be added to the state tax to get the total due. Cities and counties can impose local rates, and DOR publishes those rates in tables that change during the year. The combined bill is what appears on the closing statement. A $5.00 state technology fee applies to every transfer. If an exemption is claimed for the total tax, an additional $5.00 affidavit processing fee applies. A minimum of $10.00 is due in fees or tax.

Usually the seller pays. If the seller does not, DOR says the buyer is responsible. Unpaid tax can become a lien on the property itself. The parties can negotiate who will pay as between themselves, but that private agreement does not erase the statutory liability if the tax is not paid.

When is the tax due, and what else should buyers and sellers watch?

On a deeded transfer, REET is due on the date of sale, regardless of the recording date, and is payable to the county treasurer in the county where the property is located. Penalty and interest apply if the tax is not paid within one month of the date of sale. The late penalties are 5% after one month, an additional 5% after two months (10% total), and an additional 10% after three months (20% total). Interest also accrues on unpaid tax from the date of sale, at the rates DOR publishes for that calendar year (6% for 2026).

An affidavit generally has to be filed whenever ownership or title is transferred by a deed or similar instrument. The affidavit, the conveyance document, and payment go to the county treasurer, not to DOR's main office. Mailing a deeded-transfer packet to DOR by mistake can delay filing and trigger penalties.

A transfer of a controlling interest (generally 50% or more, looking at a 36-month period) in an entity that owns Washington real property is also a taxable sale. Those returns are filed with DOR, and payment is supposed to be postmarked within five days of the transfer. Penalties and interest apply if the tax is not postmarked within one month.

Limited exemptions exist, including many gifts, inheritances, certain government transfers, and some foreclosure-related conveyances. Only one exemption can be claimed per transfer, and the exemption code belongs on the affidavit. All transactions can be audited, and records have to be kept for at least four years from the date of sale.

Before you sign a purchase agreement, ask the closing firm or a licensed local agent to estimate:

• The state REET on the contract price, using the correct bracket for the closing date.
• The local REET rate for that city or county, from DOR's current rate table.
• Who will pay the tax under the contract, remembering that unpaid tax can still encumber the property.
• Whether agricultural or timberland continuance, or another exemption, might apply, and what proof the treasurer will require.

Do not rely on a rule of thumb from a different year or a different county. Local rates change, and the state thresholds change on January 1, 2027.

FAQ

Who usually pays Washington's real estate excise tax?

The seller usually pays. If the seller does not, the buyer is responsible, and unpaid tax can become a lien on the property. A contract can allocate the cost between the parties, but the tax still has to be paid to the county treasurer.

Are the state rates a single percentage of the whole price?

No, except for qualified agricultural and timberland sales taxed at a flat 1.28%. For other sales, each rate applies only to the portion of the price in that bracket.

When does REET have to be paid?

On a deeded transfer, it is due on the date of sale and is paid to the county treasurer. Penalties and interest apply if it is not paid within one month of the date of sale.

Do the $525,000 thresholds last after 2026?

They apply to transfers through December 31, 2026. On January 1, 2027, the thresholds become $551,000, $1,551,000, and $3,051,000. Confirm the date-of-sale brackets with DOR or the county treasurer.

Next step

Ask a licensed local real estate agent, and the escrow or closing firm handling your sale, to estimate state and local REET for your contract price and closing date, and to confirm who will pay it.

Sources: Washington Department of Revenue, real estate excise tax; RCW 82.45; San Juan County Treasurer, REET rate summary (state brackets).

Unless the buyer waives it, a Washington seller has five business days after mutual acceptance to deliver a completed seller disclosure statement. The buyer then has three business days after receiving it to approve the statement or rescind the purchase in writing. The statement is based on the seller's actual knowledge and is not a warranty.

What is the seller disclosure statement, and what are the deadlines?

Chapter 64.06 RCW requires a "real property transfer disclosure statement" in most residential sales. In the industry it is often called Form 17, but the legal duties come from the statute, not from a trade form number. RCW 64.06.030 sets the timing. Unless the buyer has expressly waived the right to receive the statement, the seller delivers it no later than five business days after mutual acceptance of a written purchase and sale agreement, or on a different schedule the parties agree to. Within three business days of receipt, or as otherwise agreed, the buyer may either approve and accept the statement or rescind the agreement, in the buyer's sole discretion.

If the buyer rescinds, the buyer has to deliver written notice of rescission to the seller within that three-business-day period. Upon delivery of that notice, the buyer is entitled to the immediate return of deposits and other consideration, less any agreed disbursements, and the purchase agreement is void. If the buyer does not deliver a written rescission notice in time, the statement is deemed approved and accepted.

The form itself, in RCW 64.06.020, is filled out from the seller's actual knowledge at the time it is completed. It is for disclosure only. It is not a representation by any real estate licensee, and it is not a warranty of any kind by the seller or by an agent. Blank spaces are not supposed to be left empty; if a question does not apply, the seller writes "NA," and a "yes" answer to flagged items is supposed to be explained.

The statement covers a wide set of conditions, including title and legal issues, water, sewer or septic, structural and system items, and environmental questions. Those environmental questions include flooding, standing water, and drainage problems, and whether the property is in a government-designated flood zone or floodplain. The form is a starting point for inspections, not a substitute for them. A buyer who wants a professional inspection still negotiates that in the purchase agreement.

What if the statement is late, incomplete, or later amended?

If the seller fails or refuses to provide the disclosure statement, RCW 64.06.040(3) gives the buyer a rescission right until the earlier of three business days after the statement is finally received, or the date the transfer has closed, unless the buyer has waived the right in writing. Closing, for this purpose, is when the buyer has paid the price or down payment and the deed or real estate contract has been delivered and recorded. After closing, the seller's duty to deliver the statement, and the buyer's rights under this chapter, end.

If the seller later learns of additional information or an adverse change that makes a disclosure inaccurate, the seller has to amend the statement and deliver the amendment, unless the problem is corrected at least three business days before closing. The buyer then has three business days after receiving the amendment to accept it or rescind. If closing is scheduled during that window, the closing date is extended until the three-business-day period expires. Once the sale has closed, a later change does not require an amendment and does not reopen a rescission right under this chapter.

Some transfers are exempt from the disclosure law, as listed in RCW 64.06.010. Foreclosure-related transfers, gifts, and certain other conveyances can fall outside the requirement. If you are not sure whether a sale is exempt, ask the closing firm or a licensed real estate agent to point you to the statutory list rather than assuming the form is optional.

Practical steps for buyers and sellers:

• Buyers: calendar the three business days from actual receipt, and send any rescission in writing. Silence is treated as acceptance.
• Sellers: complete the form from actual knowledge, explain "yes" answers, and deliver it within five business days of mutual acceptance unless a different schedule is agreed in writing.
• Both sides: if new information appears, ask whether an amendment is required, and do not treat the disclosure as a substitute for inspections, a flood-map check, or a title report.

A licensed local real estate agent can walk through the form and the contract dates. For legal advice about a specific rescission or a disputed answer, a real estate attorney is the right person to ask.

FAQ

How long does a Washington seller have to deliver the disclosure statement?

Unless the buyer has waived the right to receive it, the seller delivers a completed, signed, and dated statement no later than five business days after mutual acceptance, or on another schedule the parties agree to. The rule is in RCW 64.06.030.

How long does a buyer have to rescind after receiving it?

Three business days after receipt, or as otherwise agreed. Rescission has to be in a written notice delivered to the seller within that period. If no written notice is delivered, the statement is deemed accepted.

Is the disclosure statement a warranty that the house is in good condition?

No. The statute says it is a disclosure based on the seller's actual knowledge, it is not part of the purchase agreement, and it is not a warranty by the seller or by a real estate licensee.

What if the seller never provides the statement?

The buyer's rescission right continues until the earlier of three business days after the statement is received or the date the transfer closes, unless the buyer has waived that right in writing.

Next step

Ask a licensed local real estate agent to review the disclosure deadlines in your purchase agreement, to confirm when the three-business-day rescission window starts, and to help you decide what inspections still need to be scheduled.

Sources: RCW 64.06.030; RCW 64.06.040; RCW 64.06.020; RCW 64.06.010.

Washington homeowners who are at least 61, unable to work because of a disability, or are qualifying disabled veterans may receive a property tax exemption if they own and occupy their primary residence and meet county income limits. A separate deferral program can postpone taxes that remain due.

Who qualifies, and how do the income tiers work?

The exemption is in RCW 84.36.381 and is administered by the county assessor, with income thresholds set and published by the Department of Revenue. To be eligible, you have to own and occupy the home as your primary residence in Washington and have a qualifying income. You also have to meet at least one of the following by December 31 of the assessment year:

• You are at least 61 years of age.
• You are at least 57 and the surviving spouse or domestic partner of someone who was in the exemption program at the time of their death.
• You are unable to work because of a disability, at any age.
• You are a disabled veteran with a service-connected evaluation of at least 40%, or you receive compensation from the U.S. Department of Veterans Affairs at the 100% rate for a service-connected disability.

Income limits are county-specific and are organized in three exemption thresholds, plus a higher deferral threshold. DOR publishes a table for tax years 2024 through 2026, and a new table for tax years 2027 through 2029. For tax years 2024 through 2026, the third (highest) exemption threshold is $84,000 in King County, $75,000 in Snohomish County, $65,000 in Kitsap County, $64,000 in Pierce County, and $41,000 in some smaller counties. Those figures are examples from DOR's official table, not a substitute for looking up your own county and tax year.

The benefit depends on which threshold you meet. DOR's June 10, 2026 special notice on Engrossed Substitute Senate Bill 6162 describes both the current structure and the larger benefits that apply to taxes levied for collection in 2027:

• All three exemption tiers are already excused from local excess levies (generally voter-approved levies) and, through tax year 2026, from Part 2 of the state school levy. Starting with tax year 2027, participants are fully exempt from the state school levy and from all local excess levies.
• Income Threshold 1 also exempts regular (or, starting in 2027, local regular) property taxes on the greater of a fixed dollar amount or a percentage of the home's value, with no cap on that percentage calculation. For tax years through 2026, that is the greater of $60,000 or 60% of value. For 2027 and after, it is the greater of $80,000 or 80% of value.
• Income Threshold 2 has a smaller regular-levy exemption: the greater of $50,000 or 35% of value, not to exceed $70,000 of value, through 2026; and the greater of $70,000 or 45% of value, not to exceed $200,000 of value, for 2027 and after.
• Income Threshold 3 does not exempt regular local property taxes.

Current participants do not have to re-apply just because the 2027 income limits and benefit levels changed. The county assessor places them in the correct tier. A status-change filing is needed if something in your situation changed, such as removing combat-related special compensation from the income calculation, which the 2026 law excludes beginning with tax year 2027.

How is the deferral program different?

The exemption reduces the tax bill. The deferral program is separate: it postpones payment of taxes, which then typically become a lien that is paid later, often when the home is sold or the deferral ends. The deferral income threshold is higher than the exemption thresholds. For tax years 2024 through 2026, DOR's table lists, for example, $88,998 in King County and $45,450 in several smaller counties. For tax year 2027 and after, the deferral threshold is based on a higher share of county median household income, and DOR has already posted the county figures.

There is also a limited-income deferral program, with its own rules. Combined disposable income, not simply a W-2 wage, is what the assessor uses. The 2026 law allows a standard deduction of $7,500 for the applicant, plus another $7,500 for a spouse or domestic partner, in lieu of itemizing qualifying medical expenses, and a limited deduction for certain long-term rental income on the primary-residence parcel if you itemize instead. You cannot claim both the standard deduction and that rental deduction.

Applications and questions go to the county assessor, not to a private tax-relief company. DOR offers a screening tool and the current threshold tables, but the assessor makes the official determination. If you are buying or selling a home that already has an exemption or a deferral, ask the assessor and the closing firm how the change in ownership or occupancy will affect it. A deferral lien, if one exists, has to be addressed at sale.

FAQ

What is the minimum age for Washington's property tax exemption?

You generally have to be at least 61 by December 31 of the assessment year, unless you qualify as a surviving spouse or partner of a prior participant (at least 57), are unable to work because of a disability, or are a qualifying disabled veteran.

Are the income limits the same in every county?

No. The Department of Revenue publishes county-specific thresholds for each three-year cycle. Use the table for your tax year, or ask the county assessor.

What changes in tax year 2027?

A 2026 law raises many income thresholds, increases the regular-levy exemption at Thresholds 1 and 2, and fully exempts participants from the state school levy. Current participants are moved to the correct tier automatically.

Is a deferral the same as an exemption?

No. An exemption reduces the tax. A deferral postpones taxes that are still due, usually as a lien. The deferral income limit is higher than the exemption limits.

Next step

Ask your county assessor which income threshold applies to your county and tax year, and whether you should apply for the exemption, the deferral, or both. A licensed local real estate or insurance agent can help you think about how a sale or a new purchase would affect an existing exemption or lien.

Sources: Washington Department of Revenue, property tax exemption for seniors, people retired due to disability, and veterans with disabilities; DOR, exemption and deferral income thresholds; DOR special notice, changes to property tax relief programs and the state school levy (June 10, 2026); DOR, income thresholds for tax years 2024-2026 (PDF).