What is the property tax rate in Thurston County?

The combined effective property tax rate in Thurston County, Washington is approximately 1.04%.

Thurston County Property Tax Calculator (2026) — Washington Property Tax Almanac

Property Tax in Thurston County, 2026

A calculator and field guide for Olympia-area homeowners — and for anyone considering a move to Thurston County — including Washington's 100% assessment ratio, the regular vs. excess levy structure, Initiative 747's 1% annual cap on regular levy revenue growth, and the income-tested Senior Citizens and Disabled Persons Property Tax Exemption with assessed-value freeze.

Thurston County, home to Olympia and 305k Washingtonians, operates under Washington State's distinctive levy-based property tax system. Washington uses 100% assessment ratio (assessed at true and fair market value) and total tax combines state school + local school + county + city + special districts (typically expressed as dollars per $1,000 of AV). Initiative 747 (passed by voters in 2001) caps regular levy revenue growth at 1% per year per district.

How the bill is built

Washington's property tax calculation has two main steps. Step 1: Assessed Value. The Thurston County Assessor reassesses property annually at true and fair market value. Step 2: Apply combined rate. Total rate combines all overlapping districts (state school + local schools + county + city + EMS + library + fire + park + flood control + cemetery, depending on location). Thurston's combined rate is approximately 10.40 per $1,000 of AV. Tax = (AV × combined rate) / 1,000. Thurston's effective rate of 1.04% reflects this calculation.

Initiative 747's 1% revenue cap creates structural rate stability. When property values rise, the rate decreases automatically so total levy revenue grows by no more than 1% per year per district (excluding new construction and voter-approved excess levies). This has produced unusually stable effective rates over time — long-term WA homeowners typically see modest, predictable bill growth even during housing bubbles. The cap excludes voter-approved school maintenance and operations levies, which is why school district rates often dominate the combined bill.

Washington has no state income tax — but compensates with high sales tax. Washington is one of nine US states with no state income tax (alongside TX, FL, TN, NV, SD, WY, AK, NH). The state-level sales tax is 6.5%, with local add-ons typically bringing combined sales tax to 8.5-10.5% depending on the locality (King County combined: ~10.1%, among the highest in the United States). For high-income residents the no-income-tax structure typically offsets the high sales tax substantially; for lower-income residents the trade-off is less favorable.

Senior Citizens and Disabled Persons Property Tax Exemption is income-tested. Income limits (2026): under $30,000 = full exemption from regular levies + AV freeze; $30K-$35K = 65% reduction + freeze; $35K-$45K = 35% reduction + freeze. Apply with the Thurston Assessor office. The same program applies to disabled veterans — Washington does NOT have a separate veteran-specific full exemption, which puts WA among the less-generous states for disabled veterans relative to TX, FL, MI, NJ, PA, OH, or VA.

2026 Thurston County rate breakdown (dollars per $1,000 of AV (100% assessment ratio), Olympia district)

Taxing entity	Rate
Olympia Public Schools (~$3.05 / $1,000 AV)	3.0500
State School + Local Schools Levies	2.9500
Thurston County General + Roads + Misc	1.7000
City of Olympia + EMS + Library	2.7000
Combined total	10.4000

As of April 26, 2026 · From Thurston County Assessor.

Note: Thurston County, anchored by Olympia (the **state capital of Washington**) and the adjoining cities of Lacey and Tumwater (Olympia's eastern and southern suburbs), is the southernmost county in the Puget Sound metropolitan area. State government employment dominates the local economy — Thurston has approximately 22,000 state government employees centered on the Washington State Capitol Campus, the largest public sector employment concentration in the Pacific Northwest after Seattle.

Note: Thurston County effective property tax rates run approximately 1.04% — slightly higher than the Puget Sound average. Washington 100% assessment ratio applies. The county benefits from substantial state government property tax base but otherwise has limited large private employers. Median home values (~$452K) are meaningfully lower than King or Pierce, making Thurston the southern Puget Sound value play.

Note: For relocation buyers: Thurston is **the state-capital-adjacent affordable choice** — full Washington benefits at lower home prices, easy I-5 commute to Pierce/King County employers (45-90 min to Tacoma or Seattle CBD), and substantial government employment locally. The Lacey area offers newer suburban subdivisions; Tumwater is wealthier (home of the historic Olympia Brewing Company / Tumwater Falls); Olympia itself includes the historic downtown and Evergreen State College.

Senior/disabled exemption and excess levies for 2026

Washington's homeowner tax relief is concentrated in a single income-tested Senior Citizens and Disabled Persons Property Tax Exemption (covering both seniors AND disabled veterans). Initiative 747's 1% revenue cap creates structural rate stability for ALL property owners regardless of exemption status.

Senior Citizens and Disabled Persons Property Tax Exemption

Washington's exemption combines a partial reduction of regular property taxes with a freeze on assessed value at the time of qualification. Income limits (2026) are tiered:

Income under $30,000: Full exemption from regular levies + AV freeze
Income $30,000-$35,000: 65% reduction in regular levies + AV freeze
Income $35,000-$45,000: 35% reduction in regular levies + AV freeze

Eligibility: must be 61+ OR disabled OR a disabled veteran with 80%+ service-connected disability. Apply with the Thurston Assessor office. Once qualified, the AV freeze locks in your assessed value as of the qualification year — even if market values rise substantially, your assessed value (and tax base) remains constant. The exemption applies to regular levies only; voter-approved excess levies (typically school M&O) are still owed.

Property Tax Deferral Program (seniors 60+)

Washington offers a Property Tax Deferral Program separate from the senior exemption — eligible seniors 60+ with income under ~$57K can defer property tax payments (with state-paid interest) until the property is sold or transferred. The deferred amount becomes a lien on the property. This is particularly valuable for cash-poor / asset-rich seniors who want to remain in their homes.

Excess Levies (school M&O)

Washington's regular levies are capped at 1% annual revenue growth per district under Initiative 747 (2001). However, voter-approved excess levies — primarily school maintenance and operations levies — are exempt from the 1% cap. Excess levies typically run 2-4 year terms and require 60% voter approval. School excess levies often dominate the combined tax bill (typically 30-50% of the total) — when these levies expire and are renewed (or fail), bills can change significantly. Watch for ballot measures.

Appealing your assessment

Washington's appeal process runs through the County Board of Equalization (BOE). Homeowners file a Petition for Review with the BOE within 60 days of the change of value notice (or by July 1, whichever is later). The BOE holds hearings — homeowners can present comparable sales, recent appraisals, or independent appraiser testimony. BOE decisions can be appealed to the Washington State Board of Tax Appeals within 30 days; from there to Superior Court. Most Washington counties reassess annually under the State Department of Revenue's revaluation cycle.

Cities and towns in Thurston County

Thurston County contains 6 incorporated municipalities, ranging from Olympia to the smallest village. Search volume for property tax is often city-specific, so here is the complete list — with population from the 2020 US Census, rounded to the nearest 100.

Data: US Census Bureau, 2020 Decennial Census. Populations rounded. Cities marked as "split" straddle a county border — the portion inside Thurston County is subject to Thurston County's tax rolls, while the portion outside is subject to the adjacent county's.

City or town	Type	Population (2020)
Olympia County seat	city	55,605
Lacey	city	53,526
Tumwater	city	25,820
Yelm	city	11,247
Rainier	city	2,127
Tenino	city	1,958

About city-level property tax rates: The rate breakdown and calculator on this page reflect the Olympia tax district. Other cities in Thurston County may pay into different school districts, city rates, and special districts — so their combined rates can differ, sometimes substantially. Always verify the specific rates for your address with the Thurston County Assessor before relying on any estimate.

Frequently asked questions

When are Washington property taxes due?

Washington property taxes are due in two installments: April 30 (first half) and October 31 (second half). Bills under $50 must be paid in full by April 30. Late payments incur 1% per month interest plus a 3% delinquency penalty after May 31 (first half) or December 1 (second half). Most Washington homeowners pay through escrow via their mortgage servicer. The Thurston Assessor office handles collection.

What is Initiative 747 and how does it limit my taxes?

Initiative 747 (passed by Washington voters in 2001) caps regular levy revenue growth at 1% per year per district. When property values rise (sometimes substantially), the rate decreases automatically so total revenue grows by no more than 1%. The cap excludes new construction (so growing districts can collect more) and voter-approved excess levies (primarily school maintenance and operations levies, which require 60% voter approval). I-747 has produced unusually stable effective rates over time — long-term Washington homeowners typically see modest, predictable bill growth even during housing bubbles. The Washington Supreme Court initially struck down I-747 in 2007, but the legislature re-enacted it in a 2007 special session.

How does Washington's no-state-income-tax structure affect total tax burden?

Washington is one of nine US states with no state income tax (alongside TX, FL, TN, NV, SD, WY, AK, NH). The state-level sales tax is 6.5%, with local add-ons typically bringing combined sales tax to 8.5-10.5% depending on locality. For high-income residents, the no-income-tax structure typically produces meaningful net savings — especially for buyers relocating from California (which has top marginal income tax of 13.3%) or New York (10.9%). For lower-income residents, the high sales tax shifts more burden to consumption-based taxation. Property tax effective rates in Washington (~0.8-1.1%) are moderate by national standards.

How do I apply for the Senior/Disabled Persons Exemption?

The Senior Citizens and Disabled Persons Property Tax Exemption is income-tested with three tiers (2026): under $30K = full exemption from regular levies + AV freeze; $30K-$35K = 65% reduction + freeze; $35K-$45K = 35% reduction + freeze. Eligibility: must be 61+ OR disabled OR a disabled veteran with 80%+ service-connected disability. Apply with the Thurston Assessor office. Once qualified, the AV freeze locks in your assessed value as of the qualification year. The exemption applies to regular levies only; voter-approved excess levies are still owed. Disabled veterans use this same program — Washington does not have a separate veteran-specific full exemption.

How do I appeal my Washington assessment?

File a Petition for Review with your County Board of Equalization (BOE) within 60 days of the change of value notice (or by July 1, whichever is later). The BOE holds hearings — homeowners can present comparable sales, recent appraisals, or independent appraiser testimony. BOE decisions can be appealed to the Washington State Board of Tax Appeals within 30 days; from there to Superior Court. Most Washington counties reassess annually under the State Department of Revenue's revaluation cycle.

About Thurston County

Beyond the property tax — a few things you might not know about the place.

Weird fact

Olympia, Washington is the home of **The Evergreen State College** — one of the most-distinctive public liberal arts colleges in the United States. Founded in 1967, Evergreen has no required courses, no grades (only narrative evaluations), no academic departments, and no traditional majors. Students design their own interdisciplinary academic programs in collaboration with faculty teams. Evergreen alumni include cartoonist Matt Groening (creator of The Simpsons and Futurama) and producer Lynda Barry. The campus's unconventional pedagogy and counterculture atmosphere have made it a destination for unconventional students nationally.

Hometown hero

Kurt Cobain

The Nirvana frontman (1967-1994) lived in Olympia from 1987 to 1991, during the formative years of his music career — recording the band's first album "Bleach" (1989, recorded in Madison, WI but written largely in Olympia) and meeting most of the early Nirvana band members through the Olympia music scene. The Olympia DIY music scene of the late 1980s — including the K Records label, the International Pop Underground Convention, and venues like the Capitol Theater — was a major influence on Cobain's songwriting and the broader grunge movement that emerged from the Pacific Northwest in the early 1990s.

Biggest annual event

Lakefair + Procession of the Species

Lakefair (annual, July at Capitol Lake in downtown Olympia, since 1957) is the largest community festival in Thurston County, drawing 100,000+ attendees with carnival rides, parade, fireworks, and the iconic Lakefair Royalty pageant. The Procession of the Species (annual, late April, since 1995) is a unique Olympia tradition — a costumed environmental celebration parade with no commercial sponsorship, no advertising, and no motorized vehicles, drawing 30,000+ participants and spectators in elaborate animal-themed costumes.

Property Tax in Thurston County, 2026