Washington State Homestead Exemption Increased!

The Washington State legislature has enacted significant changes to the Washington homestead statute. The legislation amends RCW 6.13.010, 6.13.030, 6.13.060, 6.13.070, 6.13.080, and 61.24.100, effective May 12, 2021.

In general, the law provides for increases in potential homestead exemptions based on “the county median sale price of a single-family home in the preceding year.”

The Washington State homestead amount is applicable in bankruptcy cases when debtors have elected to use it instead of the federal exemption. As of March 9, 2022, the federal homestead exemption amount is $27,900 for single filers, and $55,800 for married filers. The Washington State homestead exemption amount is now “the greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year.” (Please note that 11 U.S.C. § 522(p) may limit the maximum amount of the state homestead when property is acquired by a debtor less than 1,215 days before bankruptcy.)

These amounts will change annually, but for 2022, the county-by-county homestead exemption values for the Eastern District of Washington are as follows:

• Adams: $257,900 • Asotin: $250,800 • Benton: $378,200 • Chelan: $502,800 • Columbia: $256,200 • Douglas: $450,000 • Ferry: $229,200 • Franklin: $378,200 • Garfield: $250,800 • Grant: $311,700 • Kittitas: $484,400 • Klickitat: $399,100 • Lincoln: $215,600 • Okanogan: $309,000 • Pend Oreille: $289,400 • Spokane: $390,200 • Stevens: $289,400 • Walla Walla: $376,400 • Whitman: $355,900 • Yakima: $327,200