🏡 How Are Property Taxes Calculated? A Homeowner’s Guide for 2025

🏡 How Are Property Taxes Calculated in Washington State?

If you’ve ever opened your property tax bill and thought, “Where do these numbers even come from?” — you’re not alone. Understanding how property taxes are calculated can empower you to make smarter financial decisions and even save money.

🔍 The Basics of Property Tax Calculation

Property taxes are determined at the local level and help fund essential services — schools, libraries, roads, fire departments, and more. But how they’re calculated is a little math-heavy (don’t worry, we’ve got you).

Here’s a breakdown of the process:

1. Budget Determines Revenue Need
   Each taxing district (like your school or fire district) sets a budget.

2. Assessed Property Values are Totaled
   The county assessor determines the total value of all properties in each district. For example, in Snohomish County in 2025, the total was value of all properties in county was $223 billion.

3. Rates are Calculated
   Divide the budget by the total assessed value (per $1,000). For example, if the Snohomish County wants to raise $30,00,000 they would divide the total assessed value of all land ($223 billion) by the need then multiply by $1,000 to create the levy rate which is $ per $1,000 of your property's assessed value.  ($30M/$223B)*1,000 = $0.135 levy rate

4. Your Tax Bill = Assessed Value × Tax Rate
   If your home is valued at $900,000 and your levy rate is $0.135 your annual property tax for this levy is $121.50.

💸 Understanding Levy Rates: What You’re Really Paying For

It's also important to recognize tax rates can vary from neighborhood to neighborhood due to local taxing districts & programs... for instance here are three location all with Edmonds addresses and all with different total tax rates:

📍 Edmonds Property Tax Examples: Same City, Different Rates.

Each of these locations share the same State, Sound Transit, County, Library, School & Hospital district tax rates which add up to $6.04 per $1,000 of valuation. Though, here's where they begin to vary. 

• Edmonds "Bowl" Home - in the City of Edmonds and within the Port of Edmonds District.
  
  
• Edmonds "Westgate" Home - in the City but not within the Port District.
  
  
• Edmonds "Esperance" Home - an Edmonds address, but actually in unincorporated Snohomish County, so they pay county operational taxes, fire protection, etc.
  
  

🔗 Where to Look Up Your Property Tax Details Online

To learn more about your specific taxes, visit your county assessor's webpage where you can look up your property's details.

• King County

• Snohomish County

These sites make it easy to find your property and view your property report where you'll learn the full details of the property taxes you pay, as well as the details & history of your assess value and the status of your tax payments.

🏠 Why Assessed Value Matters More Than You Think

Of course, we've only covered how taxes are calculated and tax  levy rates are created for properties... the other component of calculating your annual property tax bill is your property's assessed value which is something you can actually monitor and potentially influence.  Learn more about how property is assessed and how you appeal your assessments if it is too high by reading this article.

Questions About Property Taxes?

💬 Contact us for to get answers about your property and taxes.