How Property Taxes Work and How They Affect Buyers in Seattle
Property taxes are one of the most important ongoing costs to understand when buying a home in Seattle. Yet many buyers are surprised by how property tax is calculated, how it can change over time, and how it affects both monthly and annual budgets.
Iām Emily Cressey, a Seattle real estate broker with HomePro Associates, and I help buyers understand property tax in Seattle every day. This guide explains how property taxes work, what buyers should expect, and how property tax factors into the true cost of buying a home.
What Is Property Tax?
Property tax is an annual tax assessed on real estate and paid by property owners. In Seattle, property tax revenue funds local services such as schools, public safety, parks, and infrastructure.
Property tax is not set by the seller or lender. Instead, it is calculated by local taxing authorities based on assessed value and tax rates.
How Property Tax Is Calculated in Seattle
Seattle property tax is determined by two main factors:
- The assessed value of the home
- Local tax levy rates
Assessed value is not always the same as market value, though they are often related. Tax rates are set by local jurisdictions and can vary by location within the Seattle area.
Because of this, property tax amounts can differ significantly between neighborhoods and home types.
Why Property Tax Can Change After You Buy
Many buyers assume the property tax amount shown on a listing will remain the same after purchase. In reality, property tax can change for several reasons, including:
- A reassessment after sale
- Changes in levy rates
- Improvements or renovations
Understanding this helps buyers avoid surprises after closing.
How Property Tax Affects Monthly Payments
For most buyers, property tax is included in monthly mortgage payments through an escrow account. This means property tax directly affects affordability.
Buyers should:
- Review estimated property tax with their lender
- Understand how escrow adjustments work
- Plan for potential increases over time
Property tax is a long-term expense, not a one-time cost.
Estimating Property Tax Before Buying
Buyers can estimate property tax by:
- Reviewing current tax records
- Using lender estimates
- Consulting local resources
While estimates are helpful, buyers should plan conservatively and allow room for change.
Property Tax and Long-Term Ownership
Over time, property tax tends to increase as values and levies change. Buyers planning to stay long-term should factor property tax growth into their financial planning.
Understanding property tax helps buyers make informed decisions about affordability not just today, but years into ownership.
Common Property Tax Questions Buyers Ask
Buyers often ask:
- Why property tax varies so much by neighborhood
- Whether tax exemptions apply
- How reassessments work after purchase
Having these answers early helps buyers feel confident and prepared.
Part of the Buyer Costs and Risks Guide
This article is part of Buyer Costs and Risks: The True Cost of Buying in Seattle, where I break down the real expenses buyers should understand when buying a home.
š Explore Buyer Costs and Risks in Seattle