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Home prices in Washington State have risen steadily over the last few years, and at a faster pace than many other states in the country. And the property tax rate has gone up as well over the years.
The question is, will property taxes increase in Washington State in 2022?
Property taxes are charged by the city to cover the cost of things such as roads, parks, transit, police, and firefighters, among other things. But where will property tax rates be throughout 2022?
State and local governments have long leaned on homeowners as a source for revenue. According to an analysis conducted by the Tax Foundation, property taxes in particular accounted for around 35% of the total revenue earned by state and local governments.
In Washington, as in most states, the money generated through property taxes is applied to all sorts of government costs. It flows into the public school system, emergency services, utilities and more. It’s a vital revenue source that states couldn’t do without.
In Washington State, the property tax rate is currently around 90 cents per thousands dollars based on the most recent home appraisal. This number is different for various counties across the state.
For instance, the property tax rate in Snohomish County is 0.93017%, while nationwide it is 1.1%. So, the higher the tax rate, the higher amount you will pay in property taxes. In the case of Snohomish County’s rate, a property assessed at a value of $965,788 (the current median home price) would be subject to $8,983 in property taxes annually.
Many things can cause rates to increase from one year to the next. New construction, needed funding for public schools, and repair of local roadways can all contribute to an increase in property tax rates. If there are any cuts to a service that is subsidized by property taxes, the governments can choose to change property tax rates.
This year, even though tax rates decreased slightly, skyrocketing home prices speak to a massive windfall in property tax revenues across the state.
In the state of Washington, property taxes comprise about one-third of all state and local tax revenues and cover the cost for things like public schools, law enforcement, and park maintenance, to name a few.
Taxes on individual homes are based on the assessed value of the property and the tax rate that the property is applicable to. The assessed value of a property is determined by evaluations made throughout the previous year based on market data, as well as inspections of homes that occur every few years.
Property tax rates apply to the assessed values of homes and are calculated based on the assessed value in a specific tax district, as well as the taxing authority’s total budget.
There are caps placed on how much property taxes can be increased. As you can see based on the numbers provided above, Washington’s tax rate is lower than the national rate. Increases in taxes are limited to 1% each year or by the rate of inflation, whichever of the two is lower. That said, these limits do not apply to new levies.
Are you in need of a home loan to finance the purchase of a home in Washington State? If so, we can help. Sammamish Mortgage has been helping Washington home buyers and homeowners with their mortgage needs since 1992. We serve all of Washington, Oregon, Idaho, and Colorado and offer many mortgage programs. Get in touch with Sammamish Mortgage today to get started.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.