The Multi-Family Housing Property Tax Exemption (MFTE) program provides a property tax exemption in exchange for the development of multifamily and affordable housing in designated “residential targeted areas”.
It authorizes 8-year exemptions to encourage the development of multifamily housing, and 12- and 20-year exemptions to encourage the development of affordable housing. All cities, many towns, and Clark, King, Kitsap, Pierce and Snohomish counties are eligible to offer an MFTE program. Over 50 Washington jurisdictions currently participate.
- Fact sheet: What is MFTE? (PDF)
- 2025 updates: 2025 Multifamily Tax Exemption (MFTE) Legislative Updates fact sheet (PDF)
Resources
The following resources are available to help local governments develop, adopt and administer MFTE programs.
- MFTE authorization: RCW 84.14
- MFTE Administrator’s Workbook (PDF)
- MFTE Guidance and Workbook Webinar: An informational webinar created for elected officials, appointed officials and other stakeholders at jurisdictions considering adoption of MFTE.
- MFTE Property Tax Exemption Audit Program Guide (PDF) — Updated for 2025
- MFTE Guidance and Study: Auditing Program recording (Vimeo)
- Application Process Overview for Program (PDF)
- Application (PDF)
- Exemption Agreement (PDF)
- Pro Forma (PDF)
- Compliance Manual (PDF)
- Lease-up Certification Report (PDF)
- Lease Rider (PDF)
- Annual Certification Report (PDF)
- Household Eligibility Certificate (PDF)
- Assessor MFTE Program Checklist (PDF)
- Seattle Example MFTE Unit Distribution, Comparability and Bedroom Criteria (PDF)
Each community offering an MFTE program must report to Commerce by April 1 of each year on program activities in the previous calendar year. Reporting requirements and deadlines are detailed in RCW 84.14.100. Commerce annual reports summarizing outcomes of local MFTE programs year are below.
Prior years’ MFTE reports:
- 2024 MFTE Report (PDF)
- 2023 MFTE Report (PDF)
- 2022 MFTE Report (PDF)
- 2021 MFTE Report (PDF)
- 2020 MFTE Report (PDF)
- 2019 MFTE Report (PDF)
- 2010 MFTE Report (PDF)
Other reports on the MFTE program:
Reports from other incentive programs:
- MFTE Guidance and Workbook Webinar: An informational webinar created for elected officials, appointed officials and other stakeholders at jurisdictions considering adoption of MFTE.
- MFTE 99-year Affordability Covenant: Sample MFTE Covenant (Word) and Covenant Memo (PDF)
- Fact Sheet: What is Tax Shift? (PDF)
- Fact Sheet: What is AMI? (PDF)
2021-2023 work products and updates
Local MFTE Webpages
- Multi-Family Property Tax Exemption Program (MFTE) | Bremerton (bremertonwa.gov)
- Taxes and Incentives | Everett (everettwa.gov)
- MFTE Incentives | Lakewood (buildyourbetterhere.com)
- Multifamily Tax Exemption – Housing | Seattle (seattle.gov)
- Multifamily Property Tax Exemption (MFTE) Program | Shoreline (shorelinewa.gov)
- Multi-Family Tax Exemption | Spokane (spokanecity.org)
- Tax Incentives – Tacoma (cityoftacoma.org)
- Multi-family Housing Tax Exemption | Wenatchee (wenatcheewa.gov)
Code Samples
- Bellingham-BMC 17.82
- Burien-BMC 19.45
- Camas-CMC 3.86
- Edmonds-EMC 3.38
- Kenmore-KMC 3.65
- Kirkland-KM 5.88
- Lake Stevens-LSMC 3.27
- Lakewood-LMC 3.64
- Lynnwood-LMC 3.82
- Port Orchard-POMC 3.48
- Seattle-SMC 5.73
- Shoreline-SMC 3.27
- Snohomish-SMC 3.50
- Snoqualmie-SMC 3.10
- Spokane-SMC 8.15
- Tacoma-TMC 6A.110
- Vancouver-VMC 3.22
- Walla Walla-WMC 2.28
- Wenatchee-WMC 5.88
- Woodinville-WMC 3.43
Recent code updates
- Issaquah 2020 Target Area Designation (PDF)
- Ferndale 2021 Update to Extend MFTE Program (PDF)
- Renton 2021 Update to Add 20 Year and Extend Program (PDF)
- Seattle 2021 Update to Add 20 Year and Update Program (PDF)