How Are Real Estate Taxes Calculated? | Kitsap Peninsula Realtor Bre Enbom Explains

If you own or plan to buy property on the Kitsap Peninsula, understanding how real estate taxes are calculated can help you make informed financial decisions. Property taxes fund vital local services like schools, roads, and fire departments—and they vary depending on where you live.

As Kitsap County real estate expert Bre Enbom explains, “Your property tax bill isn’t random. It’s based on your home’s assessed value and the specific tax rates for your local districts.”

Key Components of Property Tax Calculation

1. Assessed Value
Each year, the Kitsap County Assessor’s Office determines your property’s assessed value—an estimate of what your home would sell for on the open market. This assessment reflects 100% of your property’s “true and fair market value” and is updated annually through market analysis. Every six years, your property is also physically inspected to ensure accuracy.

2. Levy Rate
The levy rate is the total of all the individual tax rates from local districts that provide public services. These include the county, city, schools, fire, and library districts. Each district sets a budget, which determines its rate. The combined rate of all applicable districts forms your consolidated levy rate.

3. Tax Code Area (TCA)
Every property in Kitsap County belongs to a Tax Code Area, which defines which taxing districts apply. Properties in different cities—like Port Orchard, Bremerton, Poulsbo, or Silverdale—can have different levy rates based on their local services and budgets.

The Formula

Property taxes are calculated using this formula:

Property Taxes=(Assessed Value1,000)×Levy Rate\text{Property Taxes} = \left(\frac{\text{Assessed Value}}{1,000}\right) \times \text{Levy Rate}Property Taxes=(1,000Assessed Value​)×Levy Rate

For example, if your property is valued at $400,000 and the local levy rate is $9.00 per $1,000, your annual property tax would be $3,600.

Other Factors That Affect Your Taxes

• Constitutional Limit: Washington caps the regular property tax rate at 1% of market value ($10 per $1,000).
  
  

• Levy Limit: Non-voted tax increases are limited to 1% per year, plus adjustments for new construction.
  
  

• Voter-Approved Levies: Additional taxes may be approved by local voters for schools or fire districts.
  
  

• Exemptions: Qualifying senior or disabled homeowners may be eligible for exemptions or deferrals.

Local Insight Matters

Every community on the Kitsap Peninsula—from Bainbridge Island to Gig Harbor—has its own tax dynamics. For tailored guidance on how property taxes impact your home purchase or sale, connect with Bre Enbom, your trusted Kitsap Peninsula Realtor with Infinity Real Estate.