Washington does not have a state income tax, but property taxes can be a significant expense, especially for retirees living on a fixed income. As home values in Bellingham and across Whatcom County have risen, many older homeowners have seen their property tax bills climb as well.
To help, Washington offers a property tax exemption program for qualifying seniors, people with disabilities and certain disabled veterans. Many eligible homeowners never apply, so it is worth understanding how the program works.
Who may qualify
In general, the program is available to Washington homeowners who own and live in their home as their primary residence and who meet an age or disability requirement. Applicants typically must be at least 61 years old by the end of the year before taxes are due, or be unable to work because of a disability, or be a veteran with a qualifying service-connected disability rating.
There is also a household income limit, and it varies by county because it is tied to local median income. Depending on your income, the program can reduce the taxable value of your home and exempt you from certain levies, which can noticeably lower your annual bill. A related deferral program may allow some homeowners to postpone property taxes as well.
A short application could lower your property tax bill for years to come.
How to apply and plan ahead
Applications are filed with your county assessor, such as the Whatcom County Assessor for Bellingham homeowners. You will usually need proof of age or disability, proof of ownership and residence and documentation of household income, including retirement and Social Security income.
Because income limits and rules can change, check the current requirements each year and report changes in income or residence as required. If you believe you qualified in a recent year but did not apply, ask the assessor whether a claim for a prior year is still possible.
If your mortgage includes an escrow account, a lower tax bill may reduce your monthly payment after the next escrow review. Consider directing the savings toward an emergency fund or future healthcare costs.
The experts at Finance Expert Connect help Bellingham and Whatcom County retirees plan for property taxes and retirement expenses. Contact us for a free expert consultation.