What is property tax?
Who values your property?
When will my property values change?
Who decides how much property tax will be?
Where do I pay my property taxes?
How can I reduce the amount of property tax I pay?
More questions and answers about property tax
What is property tax?
Property tax is a tax that is imposed on persons because of their ownership or possession of property and is measured by the market value of the property. In Washington State, all real and personal property is subject to tax unless specifically exempted by law. Property tax was the first tax levied in the state of Washington. Today, property tax accounts for about 30 percent of total state and local taxes. It continues to be the most important revenue source for public schools, fire protection, libraries, and parks and recreation.
Who values your property?
State law requires that county assessors appraise property at 100 percent of its true and fair market value in money, according to the highest and best use of the property. Fair market value or true value is the amount that a willing and unobligated buyer is willing to pay a willing and unobligated seller. The county assessor values real property using one or more of three professional appraisal methods. Further detailed explanations on these methods can be found in our publication, A Homeowner's Guide to Property Taxes (pdf).
Real property includes land, improvements to land, structures, and certain equipment affixed to structures. Personal property includes furnishings, machinery and equipment, fixtures, supplies, and tools. The primary characteristic of personal property is its mobility. Personal property tax applies to personal property used when conducting business or to other personal property not exempted by law. Most personal property owned by individuals is specifically exempt. However, if these items are used in a business, personal property tax applies.
Everyone who uses personal property in a business or has taxable personal property must complete a personal property tax affidavit. This affidavit must be filed with you county assessor’s office by April 30 of each year. The assessor uses the affidavit to value your personal property for taxes due the following year. Personal property tax rates are the same as for real property. For detailed information about personal property tax, please refer to the Personal Property Tax (pdf) fact sheet
When will my property values change?
Assessors must revalue real property at least once every four years. In some counties, properties are revalued each year and require physical inspection at least once every six years. If your appraised real property value changes, you will receive a “change of value notice” from your local county assessor that lists the old and new appraised value of land and improvements. The frequency of changes in value to your property depends on your county’s revaluation cycle (see Comparison of County Assessor’s Statistics). If you do not agree with the appraised value of your property, you are encouraged to contact your local county assessor’s office.
Who decides how much property tax will be?
Various taxing districts, including the state and local jurisdictions, levy property tax. The individual taxing districts determine the amount of money needed and the county assessor calculates the tax rate necessary to raise that money. The amount of property tax due on an individual property is based on the combination of tax rates and the assessed value of the property.
Where do I pay my property tax?
All property taxes are paid to the county treasurer’s office where the property is located. We’ve provided contact information for Washington’s 39 counties to assist you.
How can I reduce the amount of property tax I pay?
If you believe your property has been incorrectly valued, you may appeal the valuation to the county board of equalization. Information about this process can be found in our publication, Appealing Your Property Tax Valuation to the County Board of Equalization (pdf).
Property tax exemptions are available for some property owners, such as senior citizens, disabled persons, and many nonprofit organizations. For more information, see these publications:
Historic property may also qualify for a special valuation. Property taxes will not reflect substantial improvements made to eligible historic property for 10 years. To be eligible, the property must be listed in:
- The National Register of Historic Places (or certified as contributing to the significance of a National Register Historic District), or
- A Local Register of Historic Places.
In addition, the property must be in a class of properties approved for special valuation by the local government. The Washington Department of Archaeology & Historic Preservation has more information on this program and other incentives for historic property rehabilitation on their web site, Department of Archaeology and Historic Preservation.