Washington State Real Estate Practice Exam 2026 – All-in-One Guide to Master Your Real Estate License!

In Washington State, property taxes are typically paid in arrears. This means that the taxes assessed for a particular year are paid based on the value of the property from the previous year, with payments due in the following year. For example, the assessment for taxes is determined as of January 1st, and property owners receive their tax bills which they are then expected to pay in the following year, often in two installments.

This system allows local governments to collect revenue for services that are provided to property owners in the year the taxes are paid, rather than in the year they are assessed. Understanding this mechanism is crucial for both buyers and sellers in real estate transactions, as it impacts the timing of tax obligations and could influence decisions about property ownership.

Other options do not accurately represent how property taxes function in Washington. For example, paying in advance would indicate that taxpayers pay for services before they are provided, which is not the case. Saying property taxes are non-existent overlooks the significant role they play in funding public services. Lastly, while property taxes are charged annually, this by itself does not reflect the timing of when they are due (which is in arrears). It is essential to grasp the concept of payment in arrears to navigate real estate transactions successfully