Every year I sit at kitchen tables with Kitsap homeowners who’ve owned their homes for decades. The mortgage is paid off. The property taxes keep climbing. And a surprising number of them have never heard of the Kitsap County senior property tax exemption — Washington’s property tax exemption for seniors, people with disabilities, and disabled veterans.
That’s not a small thing to miss. If you’re 61 or older, retired because of a disability, or a veteran with a service-connected disability rating, this program could lower your property tax bill, sometimes by a lot. And big changes take effect for 2027 taxes that will let more Kitsap households qualify.
Here’s the plain-English version of who qualifies, what it actually saves, and the part most people don’t think about until they’re in it: how the exemption plays into selling, downsizing, or buying a home.
This is general information, not tax or legal advice. The Kitsap County Assessor’s Office makes the final call on eligibility.
Who qualifies today (2026 taxes)
Start with the timing, because it trips people up. The Kitsap County Assessor bases eligibility on the year before the tax year — the exemption on 2026 taxes is based on 2025 age, ownership, and income. From there, there are three tests: who you are, how you own and use the home, and what your household earns.
Age, disability, or veteran status
You must meet one of these:
- Age 61 or older by December 31 of the prior year, or
- Unable to work because of a disability (any age), or
- A veteran with a service-connected disability rating of 80% or higher, or receiving VA compensation at the 100% rate, or
- A surviving spouse or domestic partner, 57 or older, of someone who had the exemption when they died.
Own it and live in it
You must own the home — a house, condo, mobile home, or co-op share — and it must be your principal residence for more than six months of the year. Homes held in a revocable trust can still qualify, as can some life estates and irrevocable trusts, but you’ll need to file the trust documents.
Income
For 2026 taxes, Kitsap household income for 2025 must be $65,000 or less. “Household” means you, your spouse or domestic partner, and any co-owner who lives with you. And it counts most income, taxable or not: Social Security, pensions, interest, dividends, rental income, and so on.
What doesn’t count against you: Service-connected VA disability benefits are not counted, and some unreimbursed costs can be subtracted — like prescriptions, in-home care, and nursing home expenses.
What’s changing for 2027 taxes — and why it’s worth checking again
Two changes make a lot more Kitsap homeowners eligible.
The first is higher income limits. The Washington Department of Revenue has published new Kitsap County thresholds for tax years 2027–2029, and the top threshold rises from $65,000 to $93,000.
The second is a lower veteran disability rating. Under the updated state law (RCW 84.36.381), for taxes due in 2027 and later, a veteran qualifies with a combined service-connected rating of 40% or higher (down from 80%), or with a total disability rating.
“If you looked into this before and were just over the line, that answer may not hold anymore. It’s worth checking again.”
How much the senior property tax exemption actually saves
The exemption works in tiers based on your income. The lower the threshold you fall under, the more of your tax bill it covers.
| Kitsap threshold | 2024–2026 | 2027–2029 | What you’re exempt from |
|---|---|---|---|
| Threshold 3 | up to $65,000 | up to $93,000 | Voter-approved excess levies (like school levies) and the state school levy |
| Threshold 2 | up to $56,000 | up to $81,000 | All of the above, plus regular taxes on the greater of $70,000 or 45% of your home’s value (max $200,000) |
| Threshold 1 | up to $46,000 | up to $70,000 | All of the above, plus regular taxes on the greater of $80,000 or 80% of your home’s value |
There’s another benefit people overlook: once you qualify, your home’s taxable value is frozen at its value in the year you first qualified. Kitsap values have climbed a lot, so that alone can make a big difference over time.
If you’re downsizing or selling: the exemption can move with you
This is where the exemption stops being only a tax question and becomes a real estate question. Under state law, if you sell your home, you can transfer your exemption to your replacement home in Washington. You can only claim it on one home at a time, and the replacement home gets valued as of January 1 of the year you transfer.
A few things I tell sellers:
Tell the Assessor when you move. Don’t assume the exemption follows you automatically.
Moving to long-term care doesn’t automatically cost you the exemption. If you move to a nursing home, assisted living, or an adult family home, or in with a relative for care, the home can still qualify if it sits empty, a spouse or dependent lives there, or it’s rented to pay for your care.
Run the numbers on your next home. A smaller, less expensive home may keep you comfortably under the income and value limits.
If you’re buying a home with an exemption: check the tax number twice
Buyers, here’s the trap. The property tax amount on a listing or tax statement may reflect the seller’s exemption — and when the home sells, the exemption ends. Your taxes could be noticeably higher than the number you saw.
The budget check worth doing before you commit: Ask your lender to estimate taxes on the full assessed value, and look at the Assessor’s records before you finalize your budget.
How to apply in Kitsap County
- Gather last year’s income documents: your federal tax return if you file, plus statements for Social Security, pensions, VA benefits, and so on, for everyone in the household.
- Apply online through the Kitsap County Assessor (they also have a walkthrough video), or ask for help.
- Questions? The Assessor’s Office is at 614 Division Street MS-22, Port Orchard, WA 98366 · 360-337-5777 · assessor@kitsap.gov.
The deferral option: a different kind of help
If you don’t qualify for the exemption, or you still need help, Washington also has a property tax deferral program for seniors and people with disabilities. The state pays the taxes for now, and they’re repaid later — usually when the home sells — with a lien on the property. That’s a bigger decision than the exemption, so talk it through with your family and a financial or legal advisor first.
Quick answers: Kitsap County senior and disabled exemption questions
Do I have to reapply every year?
The Assessor’s Office will tell you when a renewal is due. In the meantime, let them know if your income, ownership, or living situation changes.
I’m a disabled veteran under 61. Can I qualify?
Yes. For 2026 taxes you need an 80% or higher service-connected rating, or VA compensation at the 100% rate. For taxes due in 2027 and later, the state law lowers it to 40% or higher. You still need to meet the ownership, residence, and income rules.
If I sell and buy a smaller home in Kitsap, do I lose my exemption?
No. You can transfer it to your replacement home in Washington. Contact the Assessor when you move.
Does a revocable living trust disqualify me?
No, as long as you keep full use of the home and can revoke the trust. You’ll need to file a Declaration of Trust and your trust agreement with your application.
Thinking about downsizing, or buying in Kitsap?
The exemption isn’t just a line on a tax statement. For longtime homeowners, it can shape when you move, what you buy next, and what staying put really costs. Knowing how it works before you list — or before you make an offer — means taxes are part of the plan instead of a surprise after closing.
As a veteran-owned brokerage, I spend a lot of time helping longtime homeowners, veterans, and their families plan a move that makes sense — taxes included. Book a free 30-minute call or send me a message, and we’ll map out your options together.
Sources
- Kitsap County Assessor, Senior/Disabled Exemption Details (2026 income limit $65,000; how to apply; contact info): https://www.kitsap.gov/assessor/Pages/SeniorDisabledExemptionDetails.aspx
- Kitsap County Assessor, Senior/Disabled Exemption Eligibility Requirements (age, residence, trusts, what counts as income): https://www.kitsap.gov/assessor/Pages/ExemptionEligibilityRequirements.aspx
- RCW 84.36.381, Residences: property tax exemptions, qualifications (tiers, frozen value, transfer to replacement residence, long-term care, 40% veteran rating for taxes levied for collection in 2027+): https://app.leg.wa.gov/rcw/default.aspx?cite=84.36.381
- WA Department of Revenue, Exemption for seniors, people retired due to disability, and veterans with disabilities (current 80% / 100% veteran rule): https://dor.wa.gov/taxes-rates/property-tax/property-tax-exemption-seniors-people-retired-due-disability-and-veterans-disabilities
- WA DOR, Income thresholds for tax years 2027–2029 (Kitsap: T1 $70,000 · T2 $81,000 · T3 $93,000 · deferral $103,990): https://dor.wa.gov/taxes-rates/property-tax/senior-citizens-and-people-disabilities-exemption-and-deferred-income-thresholds/income-thresholds-senior-citizen-and-disabled-persons-property-tax-exemption-and-deferral-tax-years
- WA DOR, Income thresholds 2024–2026 PDF (Kitsap: T1 $46,000 · T2 $56,000 · T3 $65,000 · deferral $68,803): https://dor.wa.gov/sites/default/files/2023-08/Income_ThreshTY24-26.pdf
- RCW 84.38, Deferral of special assessments and/or property taxes: https://app.leg.wa.gov/rcw/default.aspx?cite=84.38