Tax Savings For Seniors, Disabled & Retired Homeowners

How Seniors and Disabled Homeowners in King & Snohomish Counties Can Reduce or Eliminate Property Taxes

Property taxes can be a significant financial burden for elderly and disabled homeowners, especially those on fixed incomes. Thankfully, there are several property tax relief programs available in King and Snohomish Counties that can help reduce or even eliminate your property taxes. These programs are specifically designed to assist seniors, disabled homeowners, and disabled veterans by offering exemptions, deferrals, and other forms of financial relief.

In this blog, we will explore these property tax relief programs and provide real-world financial examples to show exactly how much you can save. Let’s dive in!

1. Senior Citizens and Disabled Persons Property Tax Exemption

Washington State offers a Property Tax Exemption for seniors and disabled homeowners who meet certain income and residency requirements. This program provides either a full exemption or partial exemption from property taxes, depending on your household income and the assessed value of your home.

Eligibility Criteria:

• Age: 61 or older, or retired due to a disability.
• Income: Household income must be under $45,000 (for 2024).
• Primary Residence: The home must be your primary residence.

How the Program Works:

• Full Exemption: Homeowners with a household income of $45,000 or less may qualify for a full exemption, meaning no property tax would be due for the year.
• Partial Exemption: If your income exceeds $45,000 but is still within the program’s limits, you may qualify for a partial exemption, which reduces the taxable value of your property.

Financial Example (King County, Home Value: $750,000):

Let’s look at how this program works with an example of a homeowner in King County.

• Home Value: $750,000
• Household Income: $40,000 (meets the full exemption requirement)

Full Exemption:

• Annual Property Tax (Before Exemption):
  $750,000 × 1.1% = $8,250

• Exemption Amount: The homeowner qualifies for a full exemption, reducing the taxable value of the home to $0.

• Annual Property Tax (After Exemption):
  $0 × 1.1% = $0

• Annual Savings: The homeowner saves $8,250 in property taxes annually!

Partial Exemption:

If the homeowner’s income was slightly above the threshold for full exemption but still below the maximum allowable income for partial exemption (say $47,000), they could qualify for a partial exemption that reduces the taxable value of the home.

Let’s assume the partial exemption reduces the taxable value by $60,000:

• Taxable Value After Partial Exemption:
  $750,000 - $60,000 = $690,000
• Annual Property Tax (After Partial Exemption):
  $690,000 × 1.1% = $7,590
• Annual Savings:
  $8,250 - $7,590 = $660 in property tax savings.

2. Senior Citizens and Disabled Persons Property Tax Deferral Program

If you’re a senior or disabled homeowner who does not qualify for an exemption but still needs financial relief, the Property Tax Deferral Program may be the right choice. This program allows homeowners to defer property taxes until they sell their home or no longer live in it. The deferred taxes will accumulate interest but are not due immediately.

Eligibility Criteria:

• Age: 60 or older, or retired due to disability.
• Income: Household income must be under $58,423 (for 2024).
• Primary Residence: The home must be your primary residence.
• Home Value: Property must be worth less than $500,000 for the state program, but some local programs may have higher thresholds.

Financial Example (Snohomish County, Home Value: $750,000):

Assume a homeowner in Snohomish County has the following:

• Home Value: $750,000
• Household Income: $45,000 (meets the deferral eligibility)
• County Property Tax Rate: 1.1%

While the state deferral program has a $500,000 limit, let’s assume the homeowner qualifies for a local county deferral program.

• Annual Property Tax (Before Deferral):
  $750,000 × 1.1% = $8,250

Under the deferral program, the homeowner can defer the $8,250 in taxes. Let’s also assume interest accrues at 5% annually.

• Interest Accumulation:
  $8,250 × 5% = $412.50 interest in the first year.

• Total Deferred Amount After One Year:
  $8,250 (taxes) + $412.50 (interest) = $8,662.50

• Annual Savings: The homeowner saves $8,250 in immediate taxes, although the amount will accumulate interest until paid back.

3. Property Tax Exemption for Disabled Veterans and Their Surviving Spouses

Washington State offers a Property Tax Exemption for veterans with a service-connected disability of at least 80%. Surviving spouses of qualifying veterans can also benefit from this exemption.

Eligibility Criteria:

• Veterans with a disability rating of 80% or higher from the VA.
• Household income must be under $58,423 (for 2024).
• The property must be the veteran’s primary residence.

Financial Example (King County, Home Value: $750,000):

Let’s say a disabled veteran in King County with:

• Home Value: $750,000
• Disability Rating: 100% (eligible for full exemption)
• Household Income: $40,000 (meets the income requirement)

This veteran qualifies for a full exemption:

• Annual Property Tax (Before Exemption):
  $750,000 × 1.1% = $8,250

• Exemption Amount: The property tax is completely exempt for this qualifying disabled veteran.

• Annual Property Tax (After Exemption):
  $0 × 1.1% = $0

• Annual Savings: The disabled veteran saves $8,250 in property taxes annually!

For veterans with a disability rating between 80% and 99%, they may still qualify for a partial exemption, which could reduce the taxable value of their home. For example, if the partial exemption reduces the taxable value by $100,000, here’s how the savings would look:

• Taxable Value After Partial Exemption:
  $750,000 - $100,000 = $650,000

• Annual Property Tax (After Partial Exemption):
  $650,000 × 1.1% = $7,150

• Annual Savings:
  $8,250 - $7,150 = $1,100 in property tax savings.

4. King & Snohomish County-Specific Property Tax Relief Programs

In addition to the state programs, King County and Snohomish County offer additional local tax relief options. These may include local deferral programs or resources to help seniors and disabled residents apply for exemptions.

If you live in Snohomish County, for instance, you may qualify for an additional local property tax deferral program, which could offer relief for higher property values or additional income limits.

Financial Example (Snohomish County, Home Value: $750,000):

If a Snohomish County homeowner qualifies for the local deferral program, here’s the potential financial scenario:

• Home Value: $750,000

• Household Income: $40,000 (meets income limits for deferral)

• County Property Tax Rate: 1.1%

• Annual Property Tax (Before Deferral):
  $750,000 × 1.1% = $8,250

• Deferred Taxes + Interest (5%):
  $8,250 × 5% = $412.50 in interest.

• Total Deferred Amount (After One Year):
  $8,250 + $412.50 = $8,662.50

• Annual Savings: The homeowner saves $8,250 in immediate taxes, but this amount will accumulate interest until the property is sold or transferred.

Conclusion: Save Big on Property Taxes in King & Snohomish Counties

If you're an elderly, disabled, or veteran homeowner in King or Snohomish Counties, these property tax relief programs can save you thousands of dollars each year. Whether through full exemptions that eliminate property taxes entirely or deferral programs that help you manage tax payments over time, these programs are designed to ease the financial burden of homeownership.

To get started, contact your county assessor’s office or visit the following websites to learn more and apply:

• King County Assessor: King County Assessor’s Website
• Snohomish County Assessor: Snohomish County Assessor’s Website

Don't let high property taxes hold you back—take advantage of these valuable programs today!