Olympia, WA – March 2026 — Washington lawmakers have approved Engrossed Substitute Senate Bill 6162 (ESSB 6162), a sweeping property‑tax reform package designed to expand relief for seniors, people with disabilities and military veterans.
NOTE: The bill cleared the House of Representatives on March 6, and was delivered to the governor’s desk on March 12; under legislative rules, the governor has 20 days from adjournment to sign the measure, allow it to become law without a signature or veto it. Supporters expect a signature in early April, making the new rules effective for property taxes payable in 2027.
What Engrossed Substitute Senate Bill 6162 (ESSB 6162) Does
The bill fundamentally recalibrates Washington’s senior/disabled property‑tax exemption program, which is codified in RCW 84.36.381. Key provisions include:
1. Higher income thresholds
Starting with taxes levied for collection in 2027, the income limits for the three exemption tiers (known as thresholds 1, 2 and 3) will increase to 60 %, 70 % and 80 % of the county median household income, respectively. Under current law, these percentages are 50 %, 60 % and 70 %.
2. Larger exemption amounts
For those at or below Threshold 1, the bill exempts regular property taxes on the greater of $80 000 or 80 % of the home’s assessed value—an increase from $60 000 or 60 % of value. Homeowners between Threshold 1 and Threshold 2 can exempt the greater of $70 000 or 45 % of the home’s value (capped at $200 000), up from $50 000 or 35 % (capped at $70 000). Those at Threshold 3 continue to receive a valuation freeze: their taxable value is locked at the year they first qualify, protecting them from future appreciation.
3. Standard deduction and flexibility
Qualifying homeowners may reduce their “combined disposable income” by a standard deduction of $7 500 per taxpayer and $7 500 for a spouse/domestic partner. Alternatively, they may itemize medical and care expenses. Up to $6 000 of rental income from renting part of the home can be excluded.
4. Broader eligibility for veterans
Veterans now qualify if they receive U.S. Department of Veterans Affairs compensation with a 40 % service‑connected disability rating or a total disability rating; survivors aged 57 + may continue the exemption. Previously, veterans generally needed an 80 % disability rating.
5. Consolidation of the state property tax
The bill merges the two state‑school levies into a single state school levy and requires property‑tax statements to label it clearly. All qualified homeowners—regardless of income tier—are fully exempt from this state levy and from all voter‑approved “excess” levies.
Supporters’ View
Senate Bill 6162 enjoyed broad support in both chambers, passing the Senate 41‑8 and the House with a comfortable majority.
Senator Deb Krishnadason (D‑Gig Harbor), the bill’s prime sponsor, framed the measure as a way to help vulnerable homeowners stay in their homes. “Really, at the core of this legislation, it’s bringing and strengthening critically important property tax exemptions to our most vulnerable, our low‑income, fixed‑income seniors, disabled persons and disabled veterans,” Krishnadason told the House Finance Committee. “And it will help so many … so that they can stay in their homes where they raise their children and see their grandchildren take those first steps”.
County assessors also welcomed the reforms. Pierce County Assessor‑Treasurer Marty Campbell said the new rules would make the program easier to administer. “I urge support of Senate Bill 6162,” he said. “This is a huge step forward in both internal processes and making sure that we are expanding needed deductions”.
Skepticism and Concerns
Not everyone is enthusiastic.
At the same House committee hearing, anti‑tax activist Tim Eyman argued that shifting the tax burden onto other taxpayers is unfair. “The property tax is a unique tax,” he said. “You’re going to get a fixed amount of money, and every time you take somebody off, you’re making everybody else pay more. It is just so maddening that you can’t just reduce taxes on your own”.
Next Steps
The legislature has adjourned, and ESSB 6162 now awaits the governor’s decision. According to the EnoughFP legislative analysis, the governor has a 20‑day window after the March 12 adjournment to sign or veto the bill or let it become law without a signature.
If signed, the state Department of Revenue plans to issue official guidance and updated income‑threshold tables by August 2026. The new exemptions will take effect for property taxes levied in 2027, giving county assessors and taxpayers time to prepare for the changes.