WashingtonSB 61622025-2026 Regular SessionSenateWALLET

Concerning property tax reform.

Sponsored By: Deborah Krishnadasan (Democratic)

Signed by Governor

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Bigger property tax breaks for eligible homeowners

Beginning June 11, 2026, Washington expands property tax relief for eligible homeowners who live in their principal residence. Eligible groups include people age 61 or older, disabled retirees, and veterans with qualifying service-connected disabilities. At or below income threshold 3, claimants pay no state property tax or excess property taxes. Certain voter-approved regular taxes are also exempt, but only when the city or county names the exemption in its ballot ordinance. At or below threshold 1, regular taxes exclude the greater of $80,000 or 80% of the home's value. Above threshold 1 through threshold 2, they exclude the greater of $70,000 or 45%, capped at $200,000.

Higher income limits for homeowner tax relief

For property taxes collected in 2027 and later, Washington raises income limits for its senior and disabled homeowner exemption program. Thresholds 1, 2, and 3 are the greater of their prior-year amounts or 60%, 70%, and 80% of county median household income, respectively. Adjustments occur every three years, beginning August 1, 2026. Inflation-based adjustments for thresholds 2 and 3 are capped at 1% annually, and negative adjustments are frozen. Applicants must still meet the program's age, disability, or veteran requirements and live in the home.

More homeowners can delay property tax payments

For taxes levied in 2027 and later, Washington raises the income limit for deferring property taxes or special assessments. The limit is the greater of its prior-year amount or 90% of county median household income. Adjustments occur every three years, beginning August 1, 2026. When the county-income adjustment is not made, an inflation fallback applies, capped at 1%. Homeowners must file a declaration covering taxes or assessments on their residence; deferral delays payment rather than erasing the debt.

State school tax rate set for homeowners

For taxes collected in 2027, Washington sets the state property tax rate at $2.075355 per $1,000 of state-equalized assessed value. This is the state portion, not the full property tax bill. For taxes collected in 2028 and later, state levy limits apply. Beginning June 11, 2026, county treasurers must label this tax the “state school levy” on tax statements. The label change does not change the amount owed.

New income deductions for homeowner tax relief

Beginning June 11, 2026, property tax relief applicants can deduct $7,500 from counted income, or $15,000 with a spouse or domestic partner. Instead, they can deduct eligible listed expenses, including prescriptions, Medicare premiums, medical equipment, and long-term or home care. Applicants can also subtract up to $6,000 yearly in rent received for living space in their principal residence. Short-term rental receipts cannot be subtracted and must be reported as income. Combat-related special compensation under the federal veterans program is excluded from counted income.

Sponsors & Cosponsors

Sponsor

Deborah Krishnadasan
Democratic • Senate

Cosponsors

Adrian Cortes
Democratic • Senate
Claire Wilson
Democratic • Senate
Derek Stanford
Democratic • Senate
Emily Alvarado
Democratic • Senate
Jamie Pedersen
Democratic • Senate
Javier Valdez
Democratic • Senate
Jesse Salomon
Democratic • Senate
Jessica Bateman
Democratic • Senate
John Lovick
Democratic • Senate
June Robinson
Democratic • Senate
Leonard Christian
Republican • Senate
Liz Lovelett
Democratic • Senate
Manka Dhingra
Democratic • Senate
Marcus Riccelli
Democratic • Senate
Marko Liias
Democratic • Senate
Mike Chapman
Democratic • Senate
Noel Frame
Democratic • Senate
Rebecca Saldaña
Democratic • Senate
Sharon Shewmake
Democratic • Senate
Steve Conway
Democratic • Senate
T'wina Nobles
Democratic • Senate
Tina Orwall
Democratic • Senate
Vandana Slatter
Democratic • Senate
Victoria Hunt
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 175 • No: 18

Senate vote • 3/10/2026

Final Passage as Amended by the House

Yes: 41 • No: 8

House vote • 3/6/2026

Final Passage as Amended by the House

Yes: 93 • No: 2 • Other: 3

Senate vote • 2/16/2026

3rd Reading & Final Passage