If property taxes are squeezing your household budget, it is worth checking eligibility again for 2027. Washington has expanded its exemption program for qualifying seniors, people retired because of disability and veterans with qualifying disabilities.
The new income limits are higher in both Snohomish and Island counties. They apply to taxes payable in 2027 and later, rather than changing the rules for a 2026 bill.
Check the 2027 income limits
The state Department of Revenue publishes three income levels for each county. Lower-income levels receive a larger exemption. The highest qualifying combined-disposable-income limit for 2027–29 is:
| County | Maximum qualifying income |
|---|---|
| Snohomish | $91,000 |
| Island, including Camano Island | $75,000 |
Those are annual combined disposable income figures, calculated under the program’s rules. For taxes payable in 2027, the income year is 2026. A previous denial under a lower threshold is a reason to ask the assessor to check again.
Who can qualify?
You generally must own and occupy the home as your principal residence, meet the income limit and qualify through one of these routes:
- Be at least 61 by Dec. 31 of the year before the taxes are due.
- Be retired from regular gainful employment because of disability.
- Be a veteran receiving VA compensation at a combined service-connected rating of 40% or higher, or a total service-connected disability rating regardless of the evaluation percentage. The 40% route applies beginning with taxes collected in 2027.
Special rules also allow some surviving spouses or domestic partners age 57 or older to continue an existing exemption. Ask about your circumstances if ownership involves a trust, life estate or co-owner, or if you have moved into long-term care.
Income is more than your tax return’s bottom line
The calculation includes the applicant’s income, a spouse or domestic partner’s income and income of co-owners living in the home. It can include Social Security and pension payments even when some amounts are untaxed for federal income-tax purposes.
For 2027, the law allows a standard deduction of $7,500 for the applicant and another $7,500 for a spouse or domestic partner, as an alternative to itemizing qualifying medical expenses. Other changes can affect qualifying rental income and combat-related special compensation. Use the county’s current worksheet rather than subtracting every expense from income yourself.
What the exemption changes
The amount saved depends on your qualifying income, property value and levies. For 2027, eligible participants are exempt from the state school levy and excess levies, with additional local regular-tax relief at the lower income levels. A home does not automatically become entirely tax-free.
An exemption is different from a deferral. Deferral programs postpone eligible taxes and create a repayment obligation with interest. Ask the assessor which program is being discussed before signing an application.
Apply through the county where the home is located
Start with the Snohomish County Exemption Division at 425-388-3540, or Island County’s exemption program at 360-678-7853. Island County has an online application for new applicants; renewals and status changes use separate forms.
Ask for the application and income worksheet for the correct tax year. Gather identification, ownership information, income records such as Social Security and pension 1099s, tax returns if filed, and disability or VA documentation when applicable. If itemizing medical deductions, keep the supporting receipts.
Some county pages and forms still display older-year rules. Specify that you are asking about taxes due in 2027 and confirm which packet to use and when to submit it. Ask separately about any earlier years for which you may have qualified.
Current participants generally do not need a new application solely to move into a better exemption level because the thresholds increased. DOR says assessors will make that adjustment. Continue to respond to renewals and report eligibility changes.
Updated Oct. 30, 2026. Sources: DOR 2027–29 income thresholds; DOR 2027 changes notice; RCW 84.36.381; RCW 84.36.383; county assessors linked above.
