A home buyer recently asked me, “What would the difference in taxes be between Pierce County and King County?” It’s one of the most common questions I get when preparing a mortgage quote — and the honest answer is: it depends entirely on where the property sits, not just which county.
How Property Tax Levies Work in Washington
Property taxes vary by city, not just by county. For example, some areas of Tacoma carry meaningfully higher tax rates than parts of Seattle, and the difference usually comes down to voter-approved levies — school bonds, fire districts, parks, and similar measures layered onto the base rate. Think back to the last local ballot you voted on; several of those measures were likely tied directly to your property tax bill.
Each taxing district has a levy rate, expressed as dollars per $1,000 of assessed value. Your annual property tax is calculated as:
Assessed Value ÷ 1,000 × Levy Rate = Annual Property Tax
Levy rates differ from one taxing district to the next, which is why two homes of similar value a few miles apart — one in unincorporated King County, one inside Tacoma city limits — can carry very different tax bills. The Washington Department of Revenue’s property tax overview has more detail on how levy rates and assessed values interact statewide.
Assessed Value vs. Appraised Value
These two numbers are not the same thing and mixing them up is one of the most common misunderstandings I run into. Your county assessor sets the assessed value used for tax purposes; your lender orders an independent appraisal to determine market value for the loan. The two can move in different directions and by different amounts.
If you believe your assessed value is inaccurate, you have the right to appeal it with your county’s board of equalization. The Department of Revenue’s appeal process guide walks through the steps and deadlines.
Estimating Property Taxes Before You Own the Home
When I prepare a mortgage rate quote and we don’t yet have the actual property tax figure for a specific home, I typically estimate using 1.25% of the home’s purchase price, divided by 12 for the monthly amount built into your payment. It’s intentionally a bit conservative — better to estimate high and be pleasantly surprised than to qualify on a number that turns out too low.
Once you’re under contract on a specific home, it’s important to get your mortgage professional the actual current property tax amount so your quote — and your qualifying payment — reflects reality rather than an estimate.
New Construction: Watch for Omit Taxes
New construction is where tax estimates get tricky. County records often still show the tax bill based on the land alone, because the improvements (the home itself) haven’t been factored into the assessed value yet. That low number can look like a great deal — until the county catches up and issues what’s known as an “omit tax” bill, retroactively taxing the value of the completed home.
If you rely on the land-only tax figure when budgeting for a new construction purchase, you can be caught off guard by a significantly higher bill once the omit tax is assessed. This is exactly why I lean on the 1.25% estimate rather than trusting outdated county records for new builds.
👉 Read: Watch Out for Property Taxes When Buying a New Home for a deeper walkthrough of how omit taxes work and how to budget for them.
Why Your Taxes May Increase Right After You Buy
It’s common to see a property tax increase shortly after closing. Your sale price becomes public record, and if it’s higher than the home’s current assessed value, the county assessor typically catches up to that number at the next reassessment. Since taxes and insurance aren’t fixed costs, plan on your mortgage payment adjusting — up or down — as those figures change over time.
Frequently Asked Questions
How are property taxes calculated in Washington State? Your county multiplies your property’s assessed value by the local levy rate (expressed per $1,000 of value). Levy rates vary by city and taxing district based on voter-approved measures for schools, fire, parks, and similar services.
What’s the difference between assessed value and appraised value? Assessed value is set by the county assessor for tax purposes. Appraised value is an independent market-value estimate ordered by your lender for the loan. The two numbers can differ.
Why did my property taxes go up after I bought my home? Your sale price is public record. If it’s higher than the previous assessed value, the county typically adjusts the assessment upward at the next cycle, which raises your tax bill and your mortgage payment.
How can I estimate property taxes before I own a home? Without an actual tax figure, a common estimate is 1.25% of the purchase price annually, divided by 12 for the monthly portion of your mortgage payment.
Can I appeal my property tax assessment in Washington? Yes. If you believe your assessed value is inaccurate, you can file an appeal with your county’s board of equalization within the deadline set by your county.
Updated 2026
About Rhonda Porter
[…] by your loan servicer. Each month, a portion of your mortgage payment is set aside to cover your property taxes and homeowners insurance when those bills come […]