When talking with seniors in the community, the topic of property tax bills often comes up. Home values have risen, but retirement income remains the same, making the property taxes that come due twice a year a significant burden.

However, I often hear, "There's a property tax exemption program, but we don't qualify because our income is too high." The income limits for this program will increase significantly starting with the 2027 tax year.

This is in reference to the ESSB 6162 bill signed by Governor Ferguson on March 23 of this year. According to the Washington State Department of Revenue (DOR), this law took effect on June 11, 2026, and will apply to property taxes collected in 2027.

First, let's clarify the eligibility criteria. You must own a home in Washington state, live in that home, and meet the income requirements.

The age requirement is to be at least 61 years old by December 31 of the application year. Individuals who are unable to work due to a disability, veterans with a certain level of disability, and surviving spouses of beneficiaries aged 57 or older may also qualify.

The key factor is the income limit. This program establishes three income brackets by multiplying the county median household income by a certain percentage.

Until now (2024-2026), those percentages were 50%, 60%, and 70%. Starting in 2027, they will increase to 60%, 70%, and 80%, respectively, each rising by 10 percentage points.

Looking at the numbers makes it more tangible. For Snohomish County, the income limits for 2024-2026 were $54,000 for the first bracket, $64,000 for the second, and $75,000 for the third.

According to the table released by the DOR for 2027-2029, Snohomish County will have limits of $68,000 for the first bracket, $79,000 for the second, and $91,000 for the third. The upper limit has increased from $75,000 to $91,000, which is a significant jump.

For reference, King County has set limits of $76,000 for the first bracket, $89,000 for the second, and $101,000 for the third. Since the numbers vary by county, it's essential to check the limits for your specific county.

The exemption benefits have also expanded. Now, all three brackets will be exempt from the entire state school levy and local excess property taxes.

Previously, only a portion of the state school levy (Part 2) was exempt, but this has now been expanded to the entire amount. Since the school tax makes up a significant portion of property taxes, this change alone can make a considerable difference.

In the first bracket, in addition to this, there will be an exemption of the greater of $80,000 or 80% of the assessed value from local general property taxes. Previously, it was $60,000 or 60% of the assessed value.

In the second bracket, the exemption will be the greater of $70,000 or 45% of the assessed value, with a maximum of $200,000. Considering the previous cap was $70,000, this is a significant expansion.

The third bracket will not have an exemption from local general property taxes as before. However, the exemption from school taxes and excess property taxes alone makes it worthwhile to apply.

The method for calculating income has also changed. Household income will now be based on total income, including Social Security benefits, but starting in 2027, there will be a standard deduction of $7,500 for the applicant and $7,500 for a spouse or partner.

This standard deduction replaces the previous medical expense itemized deduction. Many people have struggled to gather receipts for hospital bills and medication costs, so this change is a welcome improvement.

Rental income from long-term leases of space within the home or on the same property will be deductible up to $6,000. Short-term rental income does not count toward this deduction.

Can you apply right away? Timing is important. The Snohomish County Assessor's office indicates that the application for the 2027 tax year will be available starting in January 2027.

For those already in the program, the DOR explains that the county will automatically adjust to a more favorable bracket based on income. However, it's a good idea to verify that your bracket has been updated correctly.

For inquiries, you can contact the Snohomish County Assessor's office at (425) 388-3433. Application forms and informational materials are also available on the county website's Assessor page.

Even if you don't qualify for the exemption, there is a deferral program for delaying property tax payments. The income limit for this program has also increased from 75% to 90% of the county median income, making it $101,355 for Snohomish County.

One thing to keep in mind is that just because more people are receiving exemptions, it doesn't mean the total amount collected by the county will decrease; that burden will be shared among other taxpayers.

Reports from the Spokane area suggest that property taxes for a $400,000 home could increase by around $20. This aspect may lead to differing opinions.

Here's my perspective: It's important to prevent situations where people have to sell their homes due to taxes after a lifetime of hard work, and I believe the community can shoulder that burden together.

However, the calculations regarding income and other benefits can vary based on individual circumstances, so I recommend checking with a tax professional or county representative. Mixing pensions, investment income, and rental income can change the calculations.

If you previously gave up because your income exceeded the limits, consider reevaluating in January. For those whose parents are struggling with property taxes, it would be a good opportunity to assist them as well.

If I were in your position, I would organize my income documents by the end of the year and submit my application as soon as it becomes available in January. There's nothing worse than missing out on benefits simply due to a lack of knowledge.