WA SB5798

Expands senior citizen property tax exemptions by increasing income thresholds to 60-80% of county median household income (from 50-70%) starting in 2027, and raises the exempt property valuation caps from $70,000 to $200,000 for income threshold 2 and adds a $500,000 cap for income threshold 1

Increases the property tax deferral income threshold from 75% to 90% of county median household income for taxes levied starting in 2027

Consolidates the state property tax levy into a single rate of $2.095 per $1,000 of assessed value for 2026, eliminating the separate "additional" state property tax structure

Requires county tax statements to identify the state property tax as the "state school levy" for transparency

Adds a $7,500 standard deduction ($15,000 for couples) for calculating combined disposable income for senior tax relief eligibility, and excludes combat-related special compensation from disposable income calculations