What’s Going On With Property Taxes in King County?

A Homeowner’s Guide to What’s Changing and Why It Matters

If you own a home in Seattle—or are thinking about buying—there’s been a lot of buzz around property taxes lately. From proposed statewide legislation to new local levies, it’s a good time to check in on what’s changing, what it might mean for your bottom line, and how it ties into the bigger picture of affordability in our region.

Here’s a breakdown of the biggest updates, explained in plain English:

🔧 Proposed Statewide Property Tax Cap Changes

Washington lawmakers are currently considering Senate Bill 5798 and House Bill 2049, which would change how much property tax revenue cities and counties are allowed to collect each year.

Current cap: Local governments can increase property tax revenue by up to 1% annually, no matter how much costs rise.
Proposed change: Allow revenue to grow by a formula tied to inflation and population growth, capped at 3% annually.

Why it matters:

Supporters say this change would help local governments keep up with rising costs for schools, emergency services, and infrastructure.
Critics warn it could lead to higher tax bills and make housing even less affordable, especially for lower-income households.

We’ll know more when the legislative session wraps up later this spring.

🚦 Seattle’s $1.55 Billion Transportation Levy: What It Means for Homeowners

In November 2024, Seattle voters approved a record-setting $1.55 billion transportation levy to replace the expiring "Move Seattle" levy. This eight-year investment will fund major improvements in:

Street repaving and pothole repair
Sidewalk construction and pedestrian safety
Bridge maintenance and seismic upgrades
Light rail access and transit connectivity
Bike lane and freight corridor improvements

📈 What to Expect:

The new levy raises property taxes, with the rate set at up to $2.71 per $1,000 of assessed home value. For a median-valued Seattle home, that’s approximately $44 more per month.

💡 When does it take effect?

You’ll begin to see the increase reflected in your 2025 property tax bill, due in two installments: April 30 and October 31. That means this current tax season is when the impact starts to show.

While the cost increase may feel steep, the funds aim to improve safety, mobility, and connectivity across the city. For homeowners and potential sellers, it may also mean added appeal as infrastructure investments take shape.

🫠 Social Housing Funding & Broader Affordability Moves

While not a property tax, it’s worth noting that Seattle voters also recently approved a new business tax on excess compensation to fund social housing. This approach avoids direct property tax increases but reflects a broader shift toward addressing long-term housing affordability.

Social housing models aim to create permanently affordable, publicly owned housing—something worth watching as new initiatives unfold.

📂 Other Real Estate-Related Tax Considerations

If you’re buying or selling a home in Washington, here are a few more tax items to keep on your radar:

Real Estate Excise Tax (REET): A graduated tax on home sales, ranging from 1.1% to 3.0% depending on the sale price.
Capital Gains Tax: May apply to profits from selling property held for over a year, depending on your individual situation.

🏡 What It All Means for You

Property taxes help fund essential services that keep our cities running—but they also affect affordability and homeownership decisions. As changes take shape at both the state and local level, I’m keeping a close eye on what it means for buyers, sellers, and homeowners alike.

If you’re wondering how these updates impact your property, your neighborhood, or your real estate plans, feel free to reach out. I’m always happy to help break it down in a way that makes sense for you.

Have questions or want to talk strategy? Let’s connect.