98503 Property Tax Rate

Property owners in ZIP code 98503 (Lacey, Washington) pay a median of $3,428/year in property taxes on homes valued at $407,700. This translates to an effective tax rate of 0.84%, which is 10% above the Washington state average of 0.77%.

The monthly property tax burden for a median-valued home in 98503 is approximately $286, which factors into escrow payments on mortgages. This ZIP code is located within Thurston County.

Compared to similar ZIP codes in Washington, 98503 has higher property taxes. ZIP codes with similar effective rates include 99354 (0.84%) and 98537 (0.84%).

In Lacey, property taxes represent approximately 3.9% of the median household income of $87,515, providing context for the relative tax burden on homeowners in this area.

Washington has no state income tax and does not reassess property at sale — your assessed value remains locked until you make major improvements or the county conducts a revaluation cycle. Thurston County offers a Senior/Disabled Exemption Program (income-based, up to $312,500 exemption for qualifying seniors 61+) and a Property Tax Reduction Program for low-income households — contact the Thurston County Assessor's office to verify eligibility and file applications before the annual deadline. Request a current assessment review from the Thurston County Assessor immediately after purchase to confirm the prior owner's value was correctly transferred to your deed.