For veterans who buy or own in Washington
Veteran homeowner benefits in Washington.
The VA loan is only the start. Washington lowers property taxes for many disabled veterans, a state program helps veterans with a down payment, and VA grants pay to adapt a home. Answer four quick questions to see which may apply to you, with the rules and figures sourced from the agencies that run them.
Benefits finder
Find what may apply to you
Four questions, no names or numbers. Your answers stay on this page.
1. You are
2. VA disability rating
3. Your home
4. A severe service-connected injury, such as loss of use of the legs or both hands, blindness, or severe burns?
Property tax
Washington's property tax exemption, now from a 40% rating
Washington's exemption for seniors and people with disabilities (RCW 84.36.381) includes veterans who receive VA compensation for a combined service-connected rating of 40% or higher, or a total disability rating at any percentage, and who own and live in the home. The rating used to be 80%; the 40% rule applies to taxes due in 2027 and later. Veterans under 40% can still qualify through age (61 or older) or retirement because of a disability.
| Income limit, King County | Combined disposable income of $101,000 or less for taxes due 2027 to 2029 (thresholds of $76,000, $89,000 and $101,000). For 2026 taxes the limit was $84,000. |
|---|---|
| What counts as income | VA disability compensation and DIC are not counted. Military retirement pay is. Starting in 2027, Combat-Related Special Compensation is not counted either. |
| Under $76,000 | From 2027: no state school levy or local excess levies, and no local regular property tax on the greater of $80,000 or 80% of the home's value. |
| $76,001 to $89,000 | From 2027: no state school levy or local excess levies, and no local regular property tax on the greater of $70,000 or 45% of value, up to $200,000. |
| $89,001 to $101,000 | From 2027: no state school levy or local excess levies. |
| How to apply | Online at taxrelief.kingcounty.gov, or on the King County Assessor's paper application. Other counties: the county assessor. |
Some county pages still show the older 80% rule. The statute and the Washington Department of Revenue's 2027 thresholds are the current figures. Surviving spouses 57 or older can keep the exemption the veteran was receiving, and a separate state grant (RCW 84.39) pays part of the property tax for some surviving spouses of veterans who died of a service-connected disability.
Funding fee
Who skips the VA funding fee
The VA funding fee is waived for a buyer who receives VA compensation for a service-connected disability (or is eligible for it but receives retirement or active-duty pay instead), a surviving spouse who receives DIC, a service member with a pre-discharge rating issued before closing, and an active-duty service member who shows proof of a Purple Heart on or before closing. If a rating is awarded after closing with an effective date before the closing date, VA may refund the fee. The VA buyer's playbook covers the rest of the loan.
Down payment help
Washington's Veterans Downpayment Assistance
The Washington State Housing Finance Commission runs a down payment assistance loan only for veterans. It pairs with the Commission's Home Advantage or House Key Opportunity first mortgage and is repaid when the home is sold, refinanced or no longer the owner's home.
| Who | Veterans with an honorable discharge (or a medical discharge with an honorable record), current and former Washington National Guard and Reserve members, and never-remarried spouses and dependent children of deceased veterans. |
|---|---|
| Buyers | First-time buyers, or a home in a Target Area. The home must be the buyer's primary residence. |
| Income limit | $164,400 in King and Snohomish counties. |
| Required | A free Commission homebuyer education class and a Commission-trained loan officer. |
Amounts and terms: the Commission's program page. A VA loan already needs no down payment, so this help is usually about closing costs; ask the loan officer how it combines with a VA loan.
Adapted housing
VA grants to adapt a home
- Specially Adapted HousingUp to $126,526 (fiscal year 2026) to build, buy or change a home for barrier-free living, for veterans with qualifying losses such as the use of both legs, blindness in both eyes or severe burns.
- Special Home AdaptationUp to $25,350 (fiscal year 2026), for example for loss of use of both hands, severe burns or certain breathing injuries.
- Living with familyA Temporary Residence Adaptation grant adapts a family member's home a qualifying veteran lives in for now.
- Washington sales tax backVeterans with a VA adapted housing grant can get back up to $2,500 per project of the sales tax paid on the work, from the Department of Revenue.
Grants can be used up to six times, within the maximum. Apply with VA Form 26-4555 on VA.gov.
If money is tight
Help with a mortgage or utilities
King County
King County Veterans Program
For King County veterans with any length of service and any discharge, service members and their families. It may help with rent or mortgage costs and utility shut-offs, plus financial coaching. Northgate and Tukwila offices, 206-263-8387.
Washington
Veterans Innovations Program
From the Washington Department of Veterans Affairs, for veterans who served on or after Sept. 11, 2001 and face a financial hardship, including foreclosure prevention and utility shut-offs.
Seattle
Utility Discount Program
Lower City Light, water, sewer and garbage bills for Seattle households under its income limits. Veteran status is not a factor; a VA benefits letter counts as proof of income.
FAQ
Questions veterans ask
Does a 40% VA rating lower property taxes in Washington?
Starting with taxes due in 2027, Washington's exemption includes veterans who receive VA compensation at a combined rating of 40% or higher, or a total disability rating, if they own and live in the home and their combined disposable income is within the county limit ($101,000 in King County). Before 2027 the rating was 80%. VA disability pay is not counted as income.
Do I pay the VA funding fee with a disability rating?
A buyer who receives VA compensation for a service-connected disability does not pay the funding fee. Neither does a surviving spouse who receives DIC. If a rating is awarded after closing with an effective date before closing, VA may refund the fee.
Can a veteran get down payment help in Washington?
The Washington State Housing Finance Commission offers Veterans Downpayment Assistance to first-time buyers (or buyers in a Target Area) with household income up to $164,400 in King and Snohomish counties. It pairs with the Commission's first mortgage and needs a homebuyer education class.
Buying with your VA benefit?
Brian, a U.S. Air Force veteran, walks through the whole benefit with you. It starts with a free 30-minute consult.
Sources
- RCW 84.36.381, Washington State Legislature (40% rule from 2025 c 200, taxes for collection in 2027 and later).
- Income thresholds for the senior and disabled persons exemption, Washington Department of Revenue, King County 2027 to 2029.
- Changes to property tax relief programs, Washington Department of Revenue special notice, June 10, 2026.
- Senior or disabled exemptions, King County Assessor.
- VA funding fee and loan closing costs, U.S. Department of Veterans Affairs, page updated Oct. 5, 2026.
- Downpayment assistance, Washington State Housing Finance Commission.
- Disability housing grants for veterans, U.S. Department of Veterans Affairs, fiscal year 2026 amounts.
- Adaptive housing for disabled veterans, Washington Department of Revenue; RCW 84.39.010.
- King County Veterans Program; Veterans Innovations Program, WDVA; Utility Discount Program, City of Seattle.
General information as of November 2026, not legal, tax or lending advice. Each agency decides eligibility; confirm with it before you rely on a benefit.
Brian Huie
U.S. Air Force veteran
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