Property Tax
Property tax is a levy based on assessed value used to fund local services. Learn how property taxes are calculated and exemptions.
Definition
Property tax is an annual tax imposed by local governments on real estate, based on the assessed value of the property. The revenue funds schools, police and fire services, infrastructure, and other municipal services. Assessed values are determined by tax assessors and may differ from market value. Tax rates are expressed as millage rates or percentages and vary by jurisdiction. Homeowners may qualify for exemptions (such as homestead exemptions, senior exemptions, or disability exemptions) that reduce taxable value. Understanding property tax assessments helps homeowners plan budgets and appeal valuations if necessary.
Why It Matters
Property tax is the part of your housing payment that keeps climbing after your rate is locked forever. Washington has no income tax, so schools and local services lean hard on levies, and one passed school bond can add several hundred dollars in a single year. Reassessments show up later as an escrow shortfall and a payment increase nobody budgeted for.
Examples
In King County, an assessed value climbs from $760,000 to $890,000. The annual bill goes from $7,900 to $9,150, pushing the escrowed monthly payment up about $104.
A 68-year-old retiree with household income under the county threshold files for the senior exemption and sees the bill cut by roughly 40 percent.
A buyer closing in June reimburses the seller for taxes already paid through October, adding $1,430 to the funds due at the table.
Tips
Compare your assessed value to actual sales on your street the month the notice arrives. In Washington you have 30 days from the notice or until July 1, whichever is later, to appeal to the county Board of Equalization.
Argue an appeal on comparable sales as of January 1 of the assessment year. Assessors value as of that date, and appeals built on later sales get dismissed.
Recheck the exemption income limits every year if you are over 61, disabled, or a veteran with a service-connected disability. The thresholds are tied to county median income and move, so an old denial may no longer apply.
Related Terms
Assessed Value
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Special Assessment
A special assessment is a one-time fee levied by an HOA or municipality to fund specific projects. U...
Tax Lien
A tax lien is a government claim against property for unpaid taxes. Learn priority rules, redemption...
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