Washington just opened a property tax break most veterans don’t know exists

Washington veterans who didn’t get property tax relief for years may finally qualify in 2027, but the state isn’t going to call to tell them.

Beginning with taxes due in 2027, a combined service-connected disability rating of 40% or higher will be enough to enter the state’s exemption program. The old bar was 80%. The change comes from Engrossed House Bill 1106, sponsored by State Rep. Stephanie Barnard (R-Pasco). The original version would have dropped the rating to 20% by 2028, but the Senate amended it to stop at 40%. Lawmakers passed it in 2025.

A second law, Senate Bill 6162, signed by Governor Bob Ferguson in March, raises the income limits and expands what the exemption covers in the same year.

Who qualifies?

According to the Department of Revenue, a veteran needs the 40% rating by December 31, 2026, to claim relief in 2027. A total disability rating for a service-connected condition also qualifies, regardless of the percentage. The veteran must own and occupy a primary residence in Washington and have household income below the county limit.

Combat-related special compensation no longer counts toward income starting in 2027. Applicants can also take a $7,500 standard deduction, plus another $7,500 for a spouse, instead of itemizing medical costs.

Every approved homeowner is exempt from the state school levy and local excess levies on the home. Lower-income applicants also get relief on local regular property taxes.

Income limits by county

The ceiling depends on where you live.

Under the Department of Revenue’s 2027 table, the top qualifying income is $101,000 in King County, $93,000 in Kitsap, $91,000 in Snohomish, and $85,000 in Pierce and Clark. Thurston is $83,000. Benton is $77,000, Spokane $74,000, and Whatcom $72,000. Yakima is $62,000. Okanogan is the lowest in the state at $49,000.

So a Bremerton veteran earning $90,000 qualifies. But that same veteran in Wenatchee, where Chelan County limits it to $68,000, does not.

How to claim it?

Applications go to the county assessor, instead of Olympia. The state guidance lists no single filing deadline, and timing varies by county. Yakima County says it won’t accept 2026 income documentation until after January 1, 2027, once tax returns and W-2s are final.

Veterans already in the program don’t need to reapply; assessors are supposed to move them to the right level automatically. One exception applies: veterans whose combat-related pay was counted in 2026 must file a status change notice themselves, because the county can’t pull that pay out of the calculation for them.

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