Real Estate February 7, 2025

Are You Paying Too Much for Property Taxes?


OK nobody panic, but it’s almost…TAX TIME. For Washington State homeowners, this means you’ve probably received a little postcard letting you know your property’s assessed value and taxes due for 2025. Those with a mortgage on their home may be tempted to file this away and let the bank take care of it (after all, that’s what your mortgage escrow fund is for). However, everyone should take a close look no matter who is writing the check—you may be over-paying taxes if your home’s assessment is above fair market value. You or a loved one who is a low-income senior or disabled may also be paying too much if you haven’t taken advantage of available exemptions. Read on for solutions to these issues as well as important deadlines to keep you on track. (Looking for income tax tips, too? Check out this article for homeowners.)

 

Assessments & Valuation  |  Exemptions & Deferrals  |  Important Dates

 


Assessments & Valuation

Each county has an assessor tasked with appraising real property at its true and fair market value, according to the highest and best use of the property. Fair market value is defined as, “the amount that a willing and unobligated buyer is willing to pay a willing and unobligated seller.” While three appraisal methods are accepted, the most common approach is to estimate value based on sales of similar properties. This is known as the Market or Sales Comparison approach and is typically pretty accurate. In fact, it’s what real estate agents use when they prepare CMA valuation estimates.

However, the county’s assessed value can be incorrectly high for a number of reasons. For example, if your property suffered recent damage or depreciation that wasn’t taken into account (physical inspections are only required once every six years). The highest and best use might also be incorrect, such as vacant land that is assessed as develop-able but in fact cannot support a septic system.

If you feel your assessment is too high, there are a number of steps you can take. A good first step is to contact your local county assessor’s office. You can request copies of the comparable sales that were used to appraise your property’s value, and can also inform them of any errors or information that should have been taken into account. Disagreements are often settled at this level without any further action needed.

If you can’t come to a resolution with the assessor, the next step would be to file an appeal with your county’s board of equalization (BOE). If you or the assessor disagrees with the BOE’s decision, it can then be appealed to the State Board of Tax Appeals (BTA). In some cases, the decision made by the BTA can also be appealed in Superior Court. Keep in mind that any appeal you make will require you to provide market evidence that the assessed value does not truly reflect the fair market value.

 

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Exemptions & Deferrals

Low-income senior homeowners who are age 61+ or people unable to work due to a disability (or their surviving spouses/domestic partners age 57+) may be eligible for a property tax exemption. This lowers the amount of taxes that are owed each year. For King County, the maximum income is $84,000 (find income guidelines for other counties here).

Seniors, low-income or disabled people who don’t meet the guidelines for an exemption may still be eligible for a property tax deferral. While this doesn’t reduce the taxes owed, it does allow you to defer taxes (including special assessments and back taxes) as a lien on the property that can be repaid either as funds become available or when the property is sold. 5% interest is assessed on the deferred amount.

Find application info plus more property tax relief programs in this article on Property Tax Relief Programs.

 

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Important Dates

January 1st: Property is valued for taxes due in the next year.

March 31st: Applications are due for the Senior/Disabled Deferral and Widow/Widower Assistance.

April 30th: The first half of property taxes are due (or full amount if you owe less than $50).

May 1st: 1% per month (12% per annum) is assessed on any overdue taxes.

June 1st: A 3% penalty is assessed for any overdue taxes in the current year.

July 1st: Deadline to file an appeal with the County Board of Equalization (BOE) for the current year’s assessment (or 30 days from the date of notification if it’s later).

August 31st: New construction is placed on the assessment roll based on the valuation determined July 31st.

September 1st: Applications for the Limited Income Deferral are due.

October 31st: The second half of property taxes are due.

December 1st: An 8% penalty is assessed for any overdue taxes in the current year.

December 31st: Property tax exemption applications are due for seniors and those with disabilities.

 

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For more info, contact the Washington State Department of Revenue at dor.wa.gov or (360) 705-6705. You can also find a lot of great info in their Homeowner’s Guide to Property Tax publication.

Psst…I love giving you these helpful tips but they can’t replace the advice of your tax professional. Reach out to your pro for counsel on the best course of action for your unique situation.


 

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CommunityTips, Trends & Living February 10, 2023

Property Tax Relief Programs in King County

More than 26,000 low-income seniors and disabled people in King County who qualify for a tax exemption haven’t claimed it…are you or your family member one of them?

If you are homeowner, make $58k or less per year, and are either age 61+ or retired due to disability, there is a good chance you qualify. You can even retroactively apply for the exemption for the prior 3 years!

Scroll down for details on this exemption plus 4 other property tax relief programs that King County offers.

In another county? Here is the full list of income thresholds for every county in Washington State, and here is another link to view the programs each county offers.

 

Senior/Disabled Property Tax Exemption

WHAT IS IT?

A reduction in King County property tax for seniors, people with disabilities, and disabled veterans.


WHO QUALIFIES?

  • Seniors age 61+

or

  • Those who cannot work due to a disability

or

  • Veterans with service-related disabilities

YOU MUST…

  • Own your home
  • Have occupied it as a primary residence at least 6 months out of the year

INCOME LIMIT

  • $58,423 maximum annual household income in the previous year

WAYS TO APPLY

  • Click here to apply online
  • Call 206-296-3920
  • Ask your local senior center if they help with applications

 

Senior/Disabled Property Tax Deferral

WHAT IS IT?

The ability for seniors & disabled people to defer unpaid property tax/special assessments, including back taxes for as long as you’ve owned the home. Deferred taxes + any accumulated interest then become a lien on the property until it’s repaid.


WHO QUALIFIES?

  • Seniors age 60+

or

  • Those who cannot work due to a physical disability

YOU MUST…

  • Own your home and have lived in it for more than 9 months in a calendar year
  • Meet an equity requirement

INCOME LIMIT

  • $67,411 maximum annual household disposable income

HOW TO APPLY

  • Call 206-263-2338

 

MORE TAX RELIEF PROGRAMS…

 

Limited Income Deferral

WHAT IS IT?

The ability to defer the second installment of your property taxes/special assessments (normally due October 31st) if you are a low-income homeowner. The deferred taxes plus interest become a lien on the property until they’re repaid.


YOU MUST…

  • Have owned your property for 5 years
  • Be living in the home as of January 1st of the application year AND more than 9 months during that year
  • Meet an equity retirement
  • Have already paid the first half of your taxes (due April 30th)

INCOME LIMIT

  • $57,000 maximum annual household income in the previous year

HOW TO APPLY

  • Call 206-263-2338

 

Homeowner Improvement Exemption

WHAT IS IT?

Relief from tax increases caused by major additions or remodels.


YOU MUST…

  • Own a detached single family dwelling (including mobile homes)
  • File your claim for exemption with the assessor BEFORE construction is complete

HOW TO APPLY

  • Call 206-263-2338

 

Flood & Storm Damage Property Tax Reduction

WHAT IS IT?

Tax relief for property damaged by something beyond the owner’s control. Eligible properties receive a reduction of assessed value resulting in lower property taxes. In addition, taxpayers can receive an exemption to keep taxes lower for the 3 years after they rebuild.


YOU MUST…

  • Have your property on the assessment roll as of January 1st in the year it was damaged
  • Have property that was destroyed, OR was in a declared disaster area and reduced in value by more than 20% as a result of the disaster

HOW TO APPLY


 

For more information on any of these programs, visit the King County Assessor’s tax relief page. You can also find info for other counties on the WA Dept of Revenue website.

 


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We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

© Copyright 2023, Windermere Real Estate/Mercer Island.