(The Center Square) – Residents in King, Pierce and Snohomish counties will pay more in property taxes next year, as the Sound Transit Board of Directors has approved a 1% property tax increase as the agency faces an estimated more than $30 billion in cost overruns on its Sound Transit 3 expansion projects.
Sound Transit can raise property taxes without voter approval because it is authorized to implement a statutory 1% annual increase to its property tax levy, which voters approved as part of the 2016 ST3 ballot measure.
The Sound Transit Board of Directors approved the tax increase on Thursday with 15 affirmative votes. There was no discussion amongst the board prior to the vote.
The 1% property tax increase will raise Sound Transit’s 2026 property tax revenue by 3.8%, from $176.2 million in 2025 to $183 million.
The increase in revenue comes as the agency faces up to $34.5 billion in cost overruns for its capital projects. This was updated from an August forecast of $30 billion in long-term costs as previously reported by The Center Square.
According to Sound Transit, this increase is necessary to address the funding shortfall and keep delayed light-rail projects on schedule.
The maximum allowable rate the agency can impose is 25 cents per $1,000 property tax, which would cost the average King County homeowner $220 annually, $140 for average Pierce County homeowners, or $187 for a Snohomish County homeowner. The estimated 2026 levy rate is 16 cents per $1,000.
Stephanie Ball, Sound Transit’s director of financial planning and analysis, continued to warn board members that if they chose to reject the annual 1% property tax increase, it would reduce the agency’s projected revenue by approximately $47 million through 2046.
Ball noted that in the case of Seattleites’ total property tax bill, Sound Transit only makes up 1.8% of the total annual payment.
Sound Transit’s 2026 budget proposal totals $3.3 billion, with tax revenues making up 75% of total revenue for the agency. Out of planned expenditures for next year, approximately $1.9 billion is set to go toward system expansions, representing 55% of total expenditures.
Sound Transit’s total service hours will increase by 29% next year. Agency staff also found that additional operating funding will be needed for security and services during the week in which Seattle hosts FIFA World Cup matches in 2026.
