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Intended audience: county assessors, property tax exemption and deferral program participants.
The 2023 Legislature passed Substitute House Bill 1355 (SHB 1355), which makes changes to the property tax exemption and deferral programs for senior citizens, persons with disabilities, and disabled veterans.
Exemption program updates
Income thresholds adjustment frequency
The frequency of income threshold adjustments changes from every 5 years to every 3 years beginning with the adjustment effective Aug. 1, 2023.
Income thresholds amounts
The percentage of median county household income allowable for each income threshold increases effective Aug. 1, 2023.
Revised exemption program income thresholds
| Income threshold | Tax years 2019 and earlier | Tax years 2020 through 2023 | Tax years 2024 and after |
|---|---|---|---|
| 1 | $30,000 | The greater of IT1 for the previous year or 45% of median county household income where the property is located. | The greater of IT1 for the previous year or 50% of median county household income where the property is located. |
| 2 | $35,000 | The greater of IT2 for the previous year or 55% of median county household income where the property is located. | The greater of IT2 for the previous year or 60% of median county household income where the property is located. |
| 3 | $40,000 | The greater of IT3 for the previous year or 65% of median county household income where the property is located. | The greater of IT3 for the previous year or 70% of median county household income where the property is located. |
Applicants exceeding thresholds due to other benefits
Existing exemption participants that would otherwise be disqualified from the program after receiving a Social Security or Supplemental Security Income (SSI) cost-of-living adjustment in calendar year 2023 will remain eligible in the exemption program for the 2024 exemption year.
Statewide outreach
The Department of Revenue will engage in statewide outreach to inform the public about the changes to income thresholds and the application process.
Changes to the deferral program
To align with the exemption program, the frequency of income threshold adjustments for the deferral program will also change from every 5 years to every 3 years beginning with the adjustment effective Aug. 1, 2023.
Questions and answers (Q & A)
Q: How can I determine the income threshold for my county?
A: Income thresholds for each county are available on the Department of Revenue’s website. Senior citizens and people with disabilities exemption and deferred income thresholds | Washington Department of Revenue
Q: Does the application process change because of SHB 1355?
A: No. The exemption and deferral programs continue to be administered by your county assessor’s office. You will need to contact your county assessor’s office to request an application. If you have questions about required documents, or processing procedures and timelines, you will also need to contact your assessor. See the department’s website for a list of county assessor contacts.
Q: Does SHB 1355 make any changes to qualification requirements for the exemption besides the allowance for cost-of-living adjustments and increases to the income thresholds?
A: No. Except the allowance for social security and SSI cost-of-living adjustments, no other qualification changes were made.
Resources
Property Tax Exemption for Senior Citizens and People with Disabilities brochure.
RCWs 84.36.381, 84.36.383, 84.36.385, 84.38.020.
Questions?
Please visit our property tax page or call the Property Tax Division at 360-534-1400 or contact your county assessor.
