| We've got a pretty good system in Washington for helping retired and disabled people not get taxed out of their homes. • Applies to age 61+, age 57+ surviving spouse if the person who qualified dies, unable to work due to disability, or disabled veteran with a service connected rating of 40%+. • Disposable income must be less than 70% of median county income. • Your assessed value for property tax purposes is the minimum of the actual accessed value and the accessed value when you qualified for the program. • You are exempted from paying one of the statewide school levies (there are two of them) and from paying "excess levies". Generally, "excess levies" are voter approved levies. • If your disposable income is less than 60% of the county median household income you also are exempt from regular levies on min($70000, max($50000, 0.35 V)) where V is the assessed taxable value. • If your disposable income is less then 50% of the county median household income the exemption from regular levies is max($60000, 0.60 V). In my county those income levels are $65k, $56k, and $46k but are updated every three years and for 2027-2029 will be $93k, $81k, $70k. For a house with a tax of $3600, the tax as you go through those levels would be about $2200, $1900, and $1000 (or maybe it was $2400, $2200, and $1000...it was a while ago that I calculated it and I'm not sure which it was). (For King County, which is where Seattle is, the levels next year will be $101k, $89k, and $76k). Disposable income is basically all your income, even if it is not taxable, with deductions for various medical things like drugs, in-home care and assistance, Medicare and Medigap premiums, and many others. If your disposable income goes over the 70% threshold and you lose eligibility but it comes back down after one year and you reapply you get back your original frozen assessment. You can repeat this so you could qualify and get the frozen assessment and the exemptions, then alternate years in which you take a big IRA withdrawal which pushes you over and you pay tax that year based on your actually assessment and with no exemptions, then do a year with the frozen assessment and the exemptions. |