State School Levy Property Tax Tips

Property tax is the primary funding source for Washington’s public schools. Two types of property tax levies support the state school system, the state school levy paid by Washington property owners for public schools, and special or excess levies approved by voters for a specified school district.

Revenues from special or excess levies may only be used for that school district. Funds collected from the state school levy go to the state’s general fund. This money is distributed to school districts throughout the state on a set formula.

The maximum state school levy rate is $3.60 per $1,000 per market value. From 2018 through 2026, the state school levy consisted of two parts, referred to as Part 1 and Part 2. In tax years of 2018, 2020, and 2021, the combined levy rate was $2.70 per $1,000 market value. For tax year 2019, the combined rate was $2.40 per $1,000 market value. Beginning in 2022 and continuing through 2026, both levy parts were subject to one percent annual growth limit.

During the 2026 Legislative Session, ESSB 6162 became law. This law combined the two state school levies back into a single state school levy starting with the 2027 tax year. The 2027 state school levy rate is $2.075355 per $1,000 market value. The single levy becomes subject to the one percent growth limit starting in the 2028 tax year.

Senior citizens and people with disabilities receiving a property tax exemption under RCW 84.36.381 and personal property machinery and equipment used exclusively in growing and producing agricultural products under RCW 4.36.630 are fully exempt from the state school levy.

Equalized state school levy

The foundation of all property tax levies, including the state school levy, is uniformity in taxation. Under the law, county assessors must value all taxable property at 100 percent of true and fair market value (RCW 84.40.030, 040). All 39 county assessors value property every year using mass appraisal techniques.

Before the Department of Revenue (Department) calculates how much to collect from each county for the state school levy, we conduct an annual ratio study. This study establishes the level of assessment for both real and personal property in each county.

The ratio measures the difference between the true and fair market value and the county assessed value. The individual ratios are then applied to the county assessor’s real and personal property, adjusting the assessments to true and fair market value prior to determining each county’s share of the state school levy. This ensures property owners pay what is truly due for the state school levy.

Example

Mr. Baker owns a property in County A and Mr. Rainier owns a property in County B. The properties have the same market value (both would sell for the same amount), but are located in different counties. The county assessor in County A assessed Mr. Baker’s property at $99,000 and the county assessor in County B assessed Mr. Rainier’s property at $80,000. Based on the Department’s study, the true and fair market value of each property is $100,000.

Without an equalized assessment, this is how Mr. Baker’s and Mr. Rainier’s state school levy would be assessed:

*Levy rate per $1,000 assessed value.

To ensure both taxpayers pay the correct amount of property tax, the Department applies the individual county assessor’s ratio to the assessed value equalizing assessments for the properties in each county and determines the amount of tax the state school can levy. Then, the assessor calculates a levy rate for the state school levy using their assessed values. This results in an equalized levy rate as shown in the following example:

*Levy rate per $1,000 assessed value.

The rate difference doesn’t mean one owner is getting a break, or that another owner is overcharged. It simply allows for equal application of the state school levy.

For the 2025 tax year, county state school levy rates ranged from $2.12 and $2.92 per $1,000 assessed value for both Part 1 and Part 2.

Questions?

If you would like more information about the state school levy, contact the Department of Revenue at 360-534-1400.