Your Home's Value Dropped. So Why Are Your Property Taxes Higher?

Introduction

You hear that home prices are cooling, and then your property tax bill arrives. Somehow, you are paying more. Washington's property tax system works differently than most homeowners expect, and understanding it can help you spot an error or find an exemption.

This article explains the system in plain words, shows the numbers behind the 2026 increase, and lists the dates that matter this month.

Quick answer: Washington taxes are budget based. Each district sets a budget, divides it by total assessed value, and your value sets your share. When values fall and budgets hold or grow, the rate rises, and voter approved levies add more. Your 2026 bill also reflects your value as of January 1, 2025, so this year's cooler market has not reached it yet.

If we haven’t met, I’m Cheryl Dillon, a residential Realtor serving Greater Seattle, the Eastside, and Snohomish County. I enjoy helping people make confident decisions about their homes and lifestyles. Whether you’re thinking about buying or selling, or simply exploring your options, I’d love to connect and help you consider what might be right for your next move.

How Does Washington's Budget Based Property Tax Work?

Washington's system is budget based, not rate based. That is the most important idea in this article.

1. Each taxing district sets a budget. Your property sits inside many overlapping districts, such as the state school levy, your county, city, school district, fire district, and library district.
2. The budget is divided by the total assessed value of all property in that district. That produces a levy rate, expressed in dollars per $1,000 of assessed value.
3. Your tax equals your assessed value divided by 1,000, multiplied by the combined levy rates.

When assessed values go down and a district's budget stays the same, the levy rate goes up. The district still collects roughly the same total. Your home value mostly decides your share of that total.

A Simple Example

Take a small district with a budget of $1,000 and ten homes each worth $100,000. Each homeowner pays $100. Now suppose every home drops 10 percent in value. The budget is still $1,000, so each homeowner still pays about $100, and the rate adjusts upward to collect the same amount.

Your tax changes meaningfully only when your home's value changes relative to your neighbors, or when the budgets you are taxed for change.

What Is the 1 Percent Levy Limit?

Many homeowners assume the limit caps how much their own bill can rise. It does not.

The limit applies to the growth of each taxing district's regular levy, generally holding the annual increase to 1 percent plus amounts tied to new construction and certain other additions. It does not cap your individual assessed value or your personal bill.

A separate constitutional limit caps the total of regular, non voted levies at 1 percent of a property's value, or $10 per $1,000 of assessed value. Voter approved levies sit outside these limits.

Why Do Voter Approved Measures Drive Increases?

If regular levies can grow only about 1 percent a year, why do bills often rise faster? In most years, the answer is voter approved levies and bonds. The King County Assessor reports that voter approved measures, more than rising property values, are responsible for most increases. The 2026 numbers show it clearly:

• Total King County property taxes for 2026: about $8.4 billion
• Increase from 2025: about $770 million, or roughly 10 percent
• Increase in total county property value: about 5.4 percent, from $873 billion to $920 billion

Snohomish County property taxes for 2026:

• Total property taxes for 2026: about $1.948 billion
• Increase from 2025: about $97 million, or 5.26 percent
• Increase in total taxable assessed property value: about 6.3 percent, from $223 billion to $237 billion

Total taxes rose nearly twice as fast as total property value. School, parks, emergency services, transit, and other voter approved measures make up much of the difference.

Why Can My Bill Rise Even When the Market Cools?

• District budgets grew through the 1 percent increase and new construction.
• New voter approved levies started, or existing ones increased.
• Your home's value held steadier than other homes in your area, which increased your share of the total.
• Timing lag: your 2026 bill is based on your assessed value as of January 1, 2025.

That last point surprises many people. The value on your tax statement reflects the market as of January 1 of the prior year, so a softer 2026 market affects future tax years rather than the bill you are paying this October.

When Are Second Half Property Taxes Due?

• First half: due April 30
• Second half: normally due October 31. In 2026, October 31 falls on a Saturday, so King County's deadline moves to Monday, November 2.

Snohomish County lists October 31 as its second half due date. Because that is a Saturday, the safest plan is to pay online or by phone by Friday, October 30. Late payments add interest and penalties. If your taxes are paid through a mortgage escrow account, your lender handles the payment and the statement is for your records.

How Do I Appeal My Assessment in King or Snohomish County?

Appeals focus on value, not on the tax rate. The question is whether your assessed value reflects market value on the valuation date.

King County: File your petition with the Board of Equalization online or by mail by July 1 of the assessment year, or within 60 days of the mailing date on your valuation notice, whichever is later.

Snohomish County: File your petition with the Board of Equalization within 60 days of the mailing date on your valuation notice. The regular 2026 notices were mailed June 26, making August 25, 2026 the appeal deadline. That window has closed, although the board may accept late petitions in limited circumstances.

1. Review your property record on the assessor's website for errors in square footage, bedroom count, condition, or lot size.
2. Gather comparable sales of similar nearby homes that sold close to the valuation date.
3. Document condition issues such as needed repairs or foundation concerns.
4. File by the deadline and submit your evidence on time. The hearing notice lists the evidence due dates.

If you disagree with the county board's decision, you can appeal to the Washington State Board of Tax Appeals. I am always happy to pull comparable sales for clients considering an appeal. If you missed this year's window, watch for your next valuation notice.

What Other Ways Can I Lower My Property Taxes?

Senior and disability programs. Washington offers exemption and deferral programs for qualifying seniors and people with disabilities who meet income limits. I covered this in my article on the hidden property tax break many homeowners miss.

An accurate record. Simple errors in your assessor record can raise your value. Checking it each year takes a few minutes.

Your vote. Because voter approved measures drive much of the change, local ballots matter. Ballots for the November 3 general election are mailed in mid October.

What Should Buyers Know About Property Taxes?

• Look at the current levy rate for the tax code area where the home sits, since rates vary between cities and school districts.
• Budget conservatively for future increases from voter approved levies.
• A sale does not automatically trigger a reassessment in Washington. Properties are revalued on the county's regular schedule.

I include an estimated tax amount when helping clients compare homes, because a few hundred dollars a year can matter when choosing between two neighborhoods.

What Should Sellers Know?

Property taxes are typically prorated at closing in Washington, so buyers and sellers each pay their share for the portion of the year they own the home. Your escrow officer calculates the exact amount. If you pay through mortgage escrow, any remaining balance is generally refunded after your loan is paid off.

What Are the Most Common Property Tax Mistakes?

• Assuming the 1 percent limit caps your personal bill
• Expecting a lower bill the same year the market cools
• Missing the appeal window, which runs 60 days from the notice mailing or to July 1, whichever is later
• Never checking the assessor record for errors in square footage, bedrooms, or condition
• Forgetting that a mortgage escrow account still needs a review when the bill changes

Frequently Asked Questions

Why did my property taxes go up when my home value went down?

Washington uses a budget based system. When values fall and district budgets stay the same or grow, levy rates rise. New or increased voter approved levies also raise bills, and your 2026 bill is based on your value as of January 1, 2025.

How are property taxes calculated in Washington state?

Each taxing district's budget is divided by the total assessed value in the district to produce a levy rate. Your tax equals your assessed value divided by 1,000, multiplied by the combined levy rates of the districts where your home sits.

What is the 1 percent levy limit in Washington?

It limits the annual growth of each taxing district's regular levy to about 1 percent, plus new construction and certain other additions. It does not cap your individual assessed value or bill, and voter approved levies sit outside it.

When are second half property taxes due in King and Snohomish County?

The regular deadline is October 31, and first half taxes are due April 30. In King County, the 2026 second half deadline moves to Monday, November 2, because October 31 falls on a Saturday. Snohomish County lists October 31, so pay by Friday, October 30 to be safe.

How do I appeal my property assessment in King and Snohomish County?

File a petition with the Board of Equalization in your county. In King County, the deadline is July 1 of the assessment year or 60 days after your valuation notice is mailed, whichever is later. In Snohomish County, the deadline is 60 days after the notice is mailed. For 2026 Snohomish County notices, the deadline was August 25, 2026. Include comparable sales, any errors in your property record, and evidence of condition. Appeals address assessed value rather than tax rates.

Do voter approved levies raise property taxes?

Yes. In both King and Snohomish counties, voter approved levies and bonds can increase property tax bills. These measures fund services such as schools, parks, and emergency services. Your bill also depends on the applicable levy rates and your property's assessed value. The King County Assessor has identified voter approved measures as a major driver of increases.

Can I lower my property taxes in Washington?

You can review your assessor record for errors, appeal your assessed value if it exceeds market value, and apply for senior or disability exemptions if you qualify.

Ready to Understand Your Home's True Value?

Whether you want comparable sales for an appeal, a clear estimate of taxes on a home you are considering, or a full picture of what your home is worth today, I would love to help.

Wherever you are in your home journey, you don’t have to have everything figured out before reaching out. I also help people connect with trusted, carefully vetted real estate agents across the country when their plans take them beyond my local area. If you have questions, would like to talk through your options, or need an introduction to an agent in another area, I’d be glad to connect. We can take it one step at a time. You don’t have to do this alone. I’m here to help.

Phone: 425.954.5622

Email: Cheryl@CherylDillonRealEstate.com

Website: CherylDillonRealEstate.com

Cheryl Dillon is a licensed REALTOR® in the state of Washington with eXp Realty.