What is the homestead exemption in Washington and how do I claim it?
Washington significantly expanded its creditor homestead in 2021, tying it to county home values.
1. Two Concepts
Washington has (a) a property-tax exemption for seniors/disabled administered by county assessors under RCW § 84.36.381 and (b) a creditor/bankruptcy homestead under RCW Ch. 6.13 protecting equity from judgments.
2. Creditor / Bankruptcy Homestead
RCW § 6.13.030 (amended by SB 5408, 2021) sets the homestead at the greater of $125,000 or the countywide median sale price of a single-family home in the prior calendar year. In King County, this can exceed $1 million; in rural counties, often $300,000-$500,000.
3. Automatic vs Declaration
The exemption auto-attaches to the principal residence. An optional declaration under § 6.13.040 can be recorded but is not required.
4. Federal Bankruptcy Cap
Washington allows debtors to choose state or federal exemptions. BAPCPA § 522(p)'s $189,050 cap can apply to state-law claims when property was acquired within 1,215 days.
5. Property-Tax Homestead
RCW § 84.36.381 exempts qualifying seniors (61+) and disabled homeowners from a portion of property taxes, with income limits indexed to county median income. The Property Tax Deferral Program (§ 84.38) allows seniors/disabled to defer taxes until sale.
6. Filing Property-Tax Exemption
File with the county assessor by December 31 for the following tax year.
7. Spousal Protections
Community property law treats the marital home as jointly owned; both spouses must consent to convey or mortgage.
8. Loss Triggers
Abandonment, sale without reinvestment within one year (§ 6.13.070), or conversion to commercial use defeats the exemption.
9. Foreclosure & Forced Sale Exceptions
Purchase-money mortgages, property taxes, mechanic's liens, child support, and federal liens override the exemption. The Wilson v. Rigby (9th Cir. 2018) line of cases is partially reversed by SB 5408 — exemption amount fixes at the petition date for bankruptcy purposes.
This is legal information, not legal advice.
- A pre-2021 judgment is being enforced against your appreciated home
- You are filing bankruptcy in King County with high equity
- Your senior property-tax exemption was disqualified for income
- RCW § 6.13.030
- RCW Ch. 6.13
- RCW § 84.36.381
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.