Older Yakima County homeowners may clear a higher income bar for Washington’s senior property tax exemption next year. The county assessor’s preliminary 2027 limits are $47,000, $54,000 and $62,000, replacing a top limit of $45,000 in 2026. The change traces to Senate Bill 6162, which the governor signed on March 23, 2026.
What do the three preliminary limits replace?
The county’s exemption page still lists the 2026 structure, with gross household income below $45,000 as the ceiling. Households earning $0 to $33,000 are exempt from regular property taxes on up to $60,000 or 60% of the home’s value, whichever is greater, plus 100% of excess levies.
The middle band, $33,001 to $39,000, is exempt on up to $50,000 or 35% of value, whichever is greater and not above $70,000, plus excess levies. The top band, $39,001 to $45,000, is exempt from excess levies only. The county page adds that gross household income is not the same as adjusted gross income on a tax return.
The Yakima Herald-Republic reported on April 2 that the assessor’s office had set preliminary 2027 limits of $47,000, $54,000 and $62,000. The county’s release called the figures preliminary and subject to change through August 2026 under state law. The release lists the three figures without saying which benefit each one unlocks.
A household with $46,000 of gross income sits above the current $45,000 ceiling but under the lowest of the three preliminary 2027 figures. Washington’s Department of Revenue says each county has its own income requirements, set from the county’s median household income, which is why Yakima’s numbers differ from those in other counties.
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What else does Senate Bill 6162 change?
The legislature’s bill record shows SB 6162, titled “Concerning property tax reform,” passed the Senate 41-8 and the House 93-2. It was signed March 23, 2026 as Chapter 163 of the 2026 laws and took effect June 11, 2026. Twenty-five senators are listed as sponsors, and House Bill 2621 was the companion measure.
The Herald reports that the law sets income limits as a percentage of county median household income, adjusted to better align with federal low-income standards. It adds a standard deduction option when income is calculated, a full exemption from the state school levy for qualifying participants and a continued valuation freeze for eligible homeowners.
The standard deduction option changes the income number that gets compared with each limit, so households near one of the lines are the ones to watch. The school-levy exemption and the valuation freeze work on the tax side, not the eligibility side, and the law also aims to simplify how the program is run.
When do 2027 applications open, and who has to act?
The county says new applications for the 2027 tax year open in January 2027, once 2026 income documentation is final. The changes apply to taxes payable in 2027 and are based on 2026 income, and income documents for 2026 cannot be accepted until after January 1, 2027.
Applicants need finalized records, such as a filed Form 1040, 1099s, W-2s or similar documents, and applications are taken at the Yakima County Assessor’s Office. For a household that was over the $45,000 ceiling, the first step is the 2026 income total, because 2026 income decides who qualifies for the 2027 bill.
Current participants do not need to act now. The assessor’s office says it will place them automatically at the appropriate exemption level. People who previously exceeded the income limits but qualify under the new thresholds may be contacted by mail, according to the county.
The age rules are unchanged on the county page. An applicant must turn 61 by December 31 of the year the income was earned, a surviving spouse of a past participant must be at least 57, or the applicant must be disabled to the point of being unable to pursue gainful employment. The state Department of Revenue also lists veterans with a service-connected rating of at least 80%.
The exemption also has residence rules. The property must be the applicant’s primary residence, where the applicant lives at least six calendar months a year, and the exemption cannot be received on any other property, according to the county’s reductions page.
That page also lists a separate deferral program. Applicants must be at least 60 or retired due to disability, must already qualify for the senior or disabled exemption and must have income below $40,000. They can defer property taxes and special assessments up to 80% of the home’s equity, and the deferred amount becomes a lien payable with interest when the property is sold or transferred.
The unresolved item is the final set of numbers. The window for changes to the preliminary figures ran through August 2026, and the county page still shows the $45,000 ceiling, so the final 2027 limits are the figures to confirm with the Yakima County Assessor’s Office before January. Households that were close to a line in 2025 or 2026 have the most to learn from that conversation.
Will 2026 income land under the new line?
A household that earned between $45,000 and the new limits in 2026 has been shut out so far, and a missed January application can mean carrying the full 2027 bill for another year. The preliminary numbers also leave real uncertainty about which band, and which benefit, a given income lands in.
The Senior Property Tax & Home-Cost Relief Kit explains the 5 kinds of property-tax relief and how to read a tax bill line by line, so a Yakima County owner can see which benefit an income band actually changes. It also includes an application log and renewal calendar for the January filing and every renewal after it.
Plan the January filing with a property-tax relief kit and renewal calendar →
More Financial Reading
- 21 Ways to Stretch a $2,087 Social Security Check
- 15 Places to Find Your Share of the $4.25 Billion States Give Back
- The New $6,000 Senior Deduction and 14 More Tax Moves for Retirees
This article was produced with AI assistance and edited for accuracy against the sources linked above.
