Seattle and King County Senior Property Tax Exemption and Deferral 2026–27: Income Limits, the New 2027 Thresholds, and How to Apply
Washington has no state income tax, which means property tax does a lot of the work of funding local government. For a retired homeowner in Seattle on a fixed income, that bill can climb faster than Social Security. Washington law gives King County homeowners two tools to push back: an exemption that lowers the tax, and a deferral that postpones it.
The numbers matter here more than anywhere else, and they are changing. The Washington Department of Revenue (DOR) has posted new, higher income thresholds for tax years 2027 through 2029. This guide puts both the current and the new King County limits side by side, then explains the differences between the programs, how to apply, and what to do if your application is denied.
Exemption vs. Deferral in One Sentence Each
Exemption: you pay less property tax, or none at all, and you never repay it. (King County Assessor)
Deferral: you pay later; the deferred taxes and interest become a lien on your home until repaid. (King County Assessor)
You can think of the exemption as a discount and the deferral as a loan secured by your home's equity.
King County Income Thresholds: Current and Coming
The DOR sets income thresholds county by county. These are the figures it publishes for King County:
Threshold | Tax years 2024–2026 | Tax years 2027–2029 |
Income Threshold 1 | $60,000 | $76,000 |
Income Threshold 2 | $72,000 | $89,000 |
Income Threshold 3 (exemption ceiling) | $84,000 | $101,000 |
Deferral Threshold | $88,998 | $113,512 |
The DOR says the 2027–2029 thresholds were updated to meet the requirements of Engrossed Substitute Senate Bill 6162. Income Threshold 3 is the top income limit for the exemption, and the Deferral Threshold is the limit for the deferral. The DOR does not spell out benefit amounts per threshold on these pages; it says the size of an exemption is based on your income, the value of the residence, and the local levy rates.
In plain terms, a King County homeowner whose income was too high in 2026 could qualify starting in tax year 2027. If you were turned down before because your income was over $84,000, check again against the $101,000 figure.
Program 1: The Senior and Disabled Persons Exemption
Who qualifies
According to the DOR, you must meet one of these as of December 31 of the year before the taxes are due:
be at least 61 years old;
be retired from regular gainful employment due to a disability; or
be a veteran receiving VA compensation at a combined service-connected rating of 80% or higher, or a total disability rating for a service-connected disability.
You must also own and occupy the home as your primary residence and have combined disposable income at or below your county's threshold. The King County Assessor adds that you must own the residence as of December 31 of the year before the tax year.
The King County Assessor's page lists the 2026 income limit (based on 2025 income) as under $84,000, including Social Security and other sources. Note one inconsistency on the county's page: its checklist says "at least age 62 the first year you apply," while its own message to seniors and the DOR both say 61. The DOR is the state agency that sets program rules, so use 61 and confirm with the Assessor if you are close to the cutoff.
What "combined disposable income" means for you
The DOR provides a Combined Disposable Income Worksheet with the application. It is how your income is measured, and it is why some people with gross incomes above the threshold still qualify. Use the worksheet rather than guessing from your tax return.
Keeping the exemption
The King County Assessor says that once you qualify, the exemption continues as long as you are eligible, but you must notify the Assessor of any change in your status or income. The DOR says renewal is required at least once every six years, as determined by the local assessor.
Program 2: The Senior and Disabled Persons Deferral
Who qualifies
The DOR says you must be:
at least 60 by December 31 of the year you file, or retired from regular gainful employment because of a disability;
the owner and occupant of the home as your primary residence; and
below the deferral threshold for combined disposable income, with enough equity to secure the State's interest.
The King County Assessor's 2026 version of these rules: age 60 or older or retired due to disability, owning and living in the home at least nine months a year, household income for 2025 of $88,998 or less, and meeting equity requirements.
What it costs
The DOR says the deferral can cover property taxes and special assessments for current and delinquent years. The deferred amount accrues 5% simple interest until repaid. Repayment is due when the home is sold, the applicant passes away, or the home is no longer the primary residence.
Program 3: The Limited-Income Deferral (Any Age)
If you are under 60 but money is tight, the DOR runs a separate property tax deferral for homeowners with limited income:
combined disposable income of $57,000 or less;
owned the home in Washington for five years and live in it as a primary residence;
enough equity to secure the State's interest.
It allows you to defer the second-half installment due in October. Applications are due by September 1. Interest is simple interest at a variable rate based on the federal short-term rate plus 2%.
How to Apply in King County
The King County Assessor strongly encourages the online application through its Senior Exemption Portal. The Assessor says paper applications take far more time and staff resources to process and cause backlogs. Paper applications are still accepted.
Need help? Call the Assessor's office at 206-296-3920 and staff can walk you through it.
Disability-based applicants who do not receive SSI must complete a Proof of Disability form. The DOR also accepts written acknowledgment from Social Security or the Veterans Administration.
Documents to gather
Based on the forms the DOR and the Assessor list:
The application (online or paper).
The Combined Disposable Income Worksheet and the income records it asks for, such as Social Security statements, pension and IRA statements, and your tax return if you filed one.
Proof of age, or proof of disability (SSA or VA acknowledgment, or the Proof of Disability affidavit).
For veterans, your VA rating letter.
For a deferral, information the county needs to confirm equity, such as your mortgage balance.
If You Are Denied
Income too high: recheck using the worksheet, since "combined disposable income" is not the same as gross income. Then compare your income against the 2027–2029 thresholds; King County's exemption ceiling rises from $84,000 to $101,000.
Age just under the line: the DOR rule is age 61 by December 31 of the year before taxes are due. Ask the Assessor which tax year you can first claim.
Not enough equity for a deferral: you may still qualify for the exemption, which has no equity test.
Disagree with the decision: call the Assessor's office at 206-296-3920 and ask how to request a review of your application.
Related Guides
Sources
This guide gives general information, not tax or legal advice. Thresholds and rules change; confirm with the King County Assessor before you apply.
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