Washingtons Levy Based Property Tax System

I want to acknowledge the concern that rising assessed values automatically mean higher taxes. This is a common misconception; many states employ such a system but Washington does not. In Washington State, property taxes are based on a budget-based levy system, not on assessed values. That means increases in market value do not raise the total amount of tax collected. Instead, taxing districts (such as fire districts, cities, schools, and libraries) certify a dollar amount they are legally allowed to collect, and the levy rate adjusts up or down depending on the total tax base.

What determines your tax bill

Fire #5 Actual Certified Levy
Fire #5 Certified Levy - No Value increase from the previous year

You can also verify all the math yourself with the Department of Revenue’s fill-in form here: https://dor.wa.gov/sites/default/files/2022-02/64-0007.xlsx.

Data you need: 
2025 Tax Base: $4,266,969,464 (Source - Page 9)
2024 Tax Base: $3,892,090,824 (Source - Page 9)
2025 New Construction: $42,503,808
2024 Tax Rate: $0.90959204/$1,000 of Assessed Value (Source - Page 9)
2025 Requested % Increase: 1% 
2025 Requested $ Increase: $35,402.15
2025 Requested Levy Request Amount: $3,650,000,000
2024 Refunds not collected in 2024 and allowed to collect in 2025: $24,891.19

Historical 2025 levy from the first levy calculation above:

Tax Base = $4,266,969,464

Levy Rate = 0.84581009 per 1,000

Collections = $3,609,045.82

No-increase scenario (freeze the tax base) from the second levy calculation above:

Frozen Tax Base = $3,892,090,824

Frozen Levy Rate = 0.92727688 per 1,000

Frozen Collections = $3,609,045.82

The collections remain the same, but the levy rate adjusts to ensure the district collects only its lawful budget request amount of $3,609,045.82.

The average year-over-year market change in Fire District 5 was 9.6318% based on the tax bases in 2024 and 2025 (4,266,969,464/3,892,090,824 = 1.096318 or 9.6318%). A 2025 sample home valued at $350,000 would have been $319,250 the year before ($350,000 ÷ 1.096318) on average.

If valued at market: $350,000 ÷ 1,000 × 0.84581009 = $296.03.

If frozen at $319,250 with a calculated frozen rate: $319,250 ÷ 1,000 × 0.92727688 = $296.03.

From this process, it is clear that the tax is identical because the levy amount drives collections, not the assessed value.

The market valuation is my office’s estimate of value as of the January 1 assessment date, developed using accepted appraisal methods and verified sales. However, the amount you ultimately pay is determined by each taxing district’s certified levy request and the legal limits placed on their collections. The Assessor’s role is to ensure those collections do not exceed what the law allows. My office acts as a limiter, not a generator, of taxes. Assessed values serve as the denominator in the levy rate equation, which determines the amount of tax assigned per $1,000 of value on a district-by-district basis. This structure guarantees fairness and predictability: increases in assessed value do not raise total taxes, because it is mathematically impossible for the Assessor to increase collections by changing values.

A good way to think about this is like splitting a dinner bill. The restaurant (the taxing district) sets the total amount, which is the budget. The Assessor’s job is to determine each person’s fair share based on what they ordered (the property you own). If you only ordered soup, you pay less than the person who ordered steak and wine, but the total bill remains the same. Similarly, increases in assessed value do not raise the district’s collections; the total is fixed, and the rate simply adjusts to divide that bill fairly. Although other states use different systems, Washington’s budget-based system is designed to keep collections capped by law. Those other methods have their own challenges, while Washington’s model focuses on predictability, fairness, and legal limits on growth.