Do Real Estate Agents Create Higher Property Taxes?

Here Are the Facts.

Every year when property tax notices arrive, homeowners start asking an important question:

“Why did my property taxes go up?”

And tucked inside that question is another one:

“Are real estate agents driving these increases?”

It’s understandable to wonder. Home prices have risen sharply across the region over the past decade. But the idea that real estate professionals cause higher taxes doesn’t match how Washington State’s tax system actually works.

Here’s a clear, fact-based breakdown.

1. Real Estate Agents Do Not Set or Influence Property Tax Rates

Property taxes are determined by government budgets and voter-approved levies, not by agent activity.

In Washington, property taxes are controlled by:

• Pierce County Assessor’s Office

• State laws governing property tax limits

• School districts, fire districts, and other taxing authorities

• Local budgets approved by elected officials

• Levies passed (or rejected) by voters

Real estate agents have zero involvement in:

• Setting tax rates

• Adjusting levy amounts

• Determining taxing district budgets

• Deciding how much cities or counties spend

Agents do not — and cannot — influence tax policy.

2. Assessed Value Is Not Based on Individual Home Sales

A common misconception is that “a high sale price on my street raised my taxes.”

That’s not how the system works.

Washington uses mass appraisal, a statistical model that analyzes data across an entire market — not one-off transactions.

Assessors look at:

• Market-wide trends

• Recent comparable sales

• Regional supply/demand patterns

• Property type

• Condition and characteristics of the home

One agent, one seller, or one buyer cannot move an entire neighborhood’s tax burden.

3. Rising Home Prices Do Not Automatically Raise Your Taxes

Property taxes are tied to taxing district budgets, not the market value of your home.

Here’s what most people don’t realize:

• Even if your assessed value increases, your taxes may not.

• Taxing districts can only increase budgets by limited amounts each year.

• Voter-approved levies (school bonds, fire levies, etc.) are the biggest drivers of tax changes.

• Rising values shift who pays what share, not how much money the government collects.

If everyone’s home doubles in value, the tax pool stays roughly the same unless voters approve new spending.

4. What Actually Drives Home Prices?

It’s tempting to look for one cause — but home prices rise because of broad economic forces, including:

• Low housing inventory

• High demand from local and out-of-area buyers

• Desirable schools and amenities

• Interest rate fluctuations

• Regional job growth

• Statewide housing mandates

• Supply chain and construction costs

Real estate agents respond to the market; they do not create it.

Buyers ultimately determine what a home is worth.

5. The Role of Real Estate Agents in a High-Demand Market

Real estate professionals:

• Market homes

• Advise clients

• Represent buyers and sellers

• Ensure legal compliance

• Support informed decisions

They do not:

• Set market prices

• Control demand

• Dictate state tax formulas

• Influence county budgets

• Approve or deny development

Agents provide expertise — the market provides pricing.

6. So, Do Real Estate Agents Cause Higher Property Taxes?

No.

Property taxes increase because of:

• Government budgets

• Voter-approved levies

• County-wide assessed value shifts

• State regulations

Not because of:

• How many homes sell

• Who represents the sale

• How well a real estate agent markets a property

In short:

Real estate agents do not create higher property taxes. Government spending and voter decisions do.

Information Helps Everyone

Property taxes are complicated — that’s why misinformation spreads easily.

The best thing homeowners can do is stay informed and understand the real drivers behind valuations and tax changes.

If you ever have questions about home values, assessments, or the market in general, I’m always here to help explain the numbers clearly and without spin. Reach out today!

I’m not just a real estate professional — I’m a Gig Harbor neighbor, parent, and community advocate. And accurate information matters