Washington state has a unique system for determining property taxes. Rather than determine local property taxes based on the home or property value, the state uses a three-component budget-based approach that considers a levy amount, the local property tax bands, and the current levy rate.
Property tax increases are also determined uniquely. Instead of basing an increase on the property's value, property tax increases are based on the amount of the taxes assessed in a prior year.
Regardless of how the taxes are determined, people in Washington look for low local property taxes when considering a home. Let's take a look at some of the areas of Washington with the lowest tax rates.
Washington's Lowest Local Property Taxes
You'll find the lowest property tax rate in Stevenson, Washington. Located along the Columbia River Gorge near the Oregon border, homeowners here pay less in property taxes than anyone else in the state.
Other Communities With Low Property Taxes
Are you a real estate investor looking for properties in a more metropolitan area? Consider Spokane.
How much is the local property tax in Spokane? Spokane is a good choice for low property taxes. Spokane's local property taxes rank lower than the other major cities in the state and offer a wide range of housing options and job opportunities.
If you're considering Spokane to purchase rental properties, consider working with an experienced property management company to help you find the best locations to minimize your tax liability.
The eastern area of the state, including Columbia, Yakima, and Whitman Counties, all offer lower property taxes than the central and coastal areas.
Seattle has the state's highest property taxes, but if you don't mind living 45 minutes away, you'll find lower property taxes in Tacoma. The difference in the tax rate is about 22%.
Property Tax Relief
The state and county tax offices offer tax relief programs for local property taxes. In some cases, you can request a local property tax refund, a payment deferral, or various levels of exemptions.
Washington state law provides tax benefit programs for senior adults and persons with disabilities. You must apply for these programs. Currently, only about 1% of property owners take advantage of this.
Consult with your local assessor office to learn about tax property tax relief options.
Finding the Lowest Property Taxes
Whether you are looking to purchase a home for your family or invest in rental properties in the state of Washington, finding the best local property taxes is essential. The coastal and central areas of the state have higher property taxes than the eastern region, but you can find tax relief programs to help defer some of the expense.
One of the most promising areas of the state is Spokane. It's a large city with a vibrant economy and attractive neighborhoods. It's also one of the areas with the most affordable property tax rates.
To learn more about finding or managing properties in the Spokane area, contact us today.