Property tax exemptions to expand for seniors, disabled
New thresholds take effect in 2027 across Washington's 39 counties.
OLYMPIA — A bipartisan bill passed by state lawmakers to expand property tax relief on primary residences for qualifying senior citizens, persons retired due to disability, and qualifying military veterans in Washington was signed into law last week by Gov. Bob Ferguson.
Approved earlier this year, Senate Bill 6162 will update the Senior/Disabled Property Tax Exemption program effective Jan. 1, 2027 with new median household income thresholds in each of the state’s 39 counties.
Grant County Assessor Melissa McKnight said the measure has been considered a top legislative priority by the Washington Association of County Assessors over the past two years.
The association was responding to cost-of-living increases — including rapidly rising home valuations that hike property taxes — affecting persons on limited incomes.
The program provides property tax relief on primary residences to individuals age 61 or older, persons under 61 and disabled from employment, and veterans with a disability rating of 80% or higher who live in their homes for at least six months each calendar year. Residency requirements may also be met for persons in approved care facilities.
According to the state Department of Revenue, there are three levels of tax levies eligible for exemption, depending on a household’s disposable income in comparison to county-specific thresholds.
For the remainder of 2026, McKnight said Grant County’s threshold to qualify for the program stays at $46,000 in annual gross household income. But “significant changes” will go into effect for county residents in 2027, she said in a recent press statement.
Then, the base income threshold will increase to $61,000. In addition, a standard deduction of $7,500 for individuals or $15,000 for joint filers will automatically be applied.
“These changes effectively raise the maximum qualifying income threshold to $68,500 for individuals and $76,000 for joint filers,” said McKnight.
She said individuals currently enrolled in the state’s two lower exemption tiers will automatically move to the highest exemption level.
“This transition will occur without any required action from the participants and will be reflected in the (county’s) 2027 property tax statements,” said McKnight.
The Revenue department says household disposable income includes revenue from all sources, even income that is not taxable for federal purposes. Common income sources include Social Security, military pay, veterans benefits, pensions and retirement plan distributions, business or rental income, capital gains, annuities, and dividends.
However, deductions in household income are allowable for individuals and their spouses or domestic partners living in adult care facilities and for in-home medical and personal-assistance care, prescription drugs, Medicare and supplemental policy premiums, and long-term care insurance.
County assessors are responsible for administering the state exemption program and for determining who meets its qualifications. Applications and supporting documents are due by Dec. 31 of the assessment year.
McKnight said residents who believe they may qualify for the updated income thresholds should wait until all 2026 income documentation is available before applying. That would include materials from 2026 federal income tax returns, Social Security earnings statements, and pension or IRA distribution records.
Assessors will notify applicants if they are approved or denied. Denials can be appealed to each county’s board of equalization for review.
Among Washington’s legislators voting to approve SB 6162 were 13th District state Sen. Judy Warnick of Moses Lake and House Reps. Tom Dent of Moses Lake and Alex Ybarra of Quincy.
