Property Tax Deferral for Homeowners with Limited Income

This deferral program is for applicants with a disposable income of $57,000 or less. It applies to property taxes due and payable after April 30. The application is due by September 1 of the year of the deferral and the first installment of property taxes must have been paid at the time of the application.

Eligibility

An applicant must have owned the home for at least five years and currently reside in it. The total deferral cannot exceed 40 percent of the equity in the residence and the owner must have sufficient fire and casualty insurance.

How It Works

The state pays the second half installment of property taxes and places a lien on the property.

The deferred taxes, with interest, must be repaid. The interest rate is based on the federal prime rate plus 2 percent.

For more information, visit the Department of Revenue, or to obtain the publication, click here.

What’s the difference between a property tax deferral and a property tax exemption?

Under this deferral program, the Washington State Department of Revenue pays the second installment of your property taxes and/or special assessments, due October 31st, on your behalf.

The program is not an exemption or a grant. Deferred taxes are taxes that have been postponed. When you no longer own and use the property as your personal residence you must repay the deferred tax. The deferred amount, plus interest, becomes a lien in favor of the state until the total amount is repaid.

(Washington State Department of Revenue Publication)