Bill would reduce taxes for WA seniors, others

Published 1:30 am Tuesday, February 24, 2026

OLYMPIA — A bill this session would expand tax exemptions and make 30,000 more low income seniors, people with disabilities, and disabled veterans eligible for them.

Senate Bill 6162 would make those in the Senior Citizen Property Tax Relief Program exempt from all state school levy property taxes. It would remain revenue-neutral by raising that tax on everyone else.

“For decades, this program has made ownership more affordable and ensured that some of our most vulnerable residents can remain in their homes with dignity, stability, and financial security,” said primary sponsor Sen. Deborah Krishnadasan, D-Gig Harbor, during its Senate floor debate Feb. 16. “In every district represented in this chamber, there are constituents who will directly benefit from this expanded program.”

Under the bill, people over the age of 61, or a surviving spouse over the age of 57, with fixed low income up to 80% of their county median income would be eligible for parts of these exemptions. This is 10 percentage points higher than previously, capturing those 30,000 additional taxpayers.

People can see their county median income and apply for exemptions through the Department of Revenue’s county directory online.

SB 6162 is the AARP’s top priority bill this session. Cathleen MacCaul, advocacy director at AARP Washington, said property tax relief for seniors is the key for helping people age in place and stay in their homes.

“As the property tax increases, and they are on a fixed income, they can’t necessarily cover those increases,” MacCaul said in an interview.

Under current law, disabled persons of any age who are unable to work and veterans who have 100% disability are also part of the program. Under this bill, veterans who have at least 40% service-connected disability are also eligible, a change from current law’s 80% minimum.

Those now qualifying are exempt from part of the state’s school levy property tax, but this bill would exempt them from the entire state levy. In 2026, program qualifiers were exempt from the $0.73 per $1,000 of assessed value, and paid the other $1.36 per $1,000 evaluation, which they would not under this bill.

These changes would apply to taxes collected in 2027 and thereafter.

To remain revenue-neutral, this will increase the state levy for other taxpayers. The significance of this increase is in debate.

During the bill’s Senate floor debate, Sen. Chris Gildon, R-Puyallup, who voted yes, said SB 6162 has “competing priorities” — one for senior citizens who need affordability and the other with the rest of tax-paying Washingtonians.

“It does represent a tax shift onto other taxpayers to the tune of about $200 million per year,

Gildon said. “A lot of people are going to have to make a difficult choice on this particular bill.”

By setting an automatic deductible amount, the bill would simplify the program’s application process, which senators and lobbyists alike said has been a large hurdle for people.

To become eligible, people can add up their deductibles, lowering their total income and putting them beneath the 80% threshold for program eligibility.

MacCaul said eligible seniors were not applying to the program because of the “burdensome paperwork” adding deductibles together took. With this bill, people can choose to instead take a $7,500 deductible per person, however low their actual deductibles are. If their deductibles are higher, a person can still file those.

For people renting out a portion of their primary residence, the bill also would allow up to $6,000 of that rental income to be excluded from a person’s taxable income.

The bill passed the Senate, with 41 yeas and eight Republicans voting nay. It now must go through the same process in the House before it can be signed by Gov. Ferguson into law. It currently awaits a public hearing in the House Finance Committee. To stay alive, it must pass that committee by the cutoff March 2.

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