Tax Rates and Revenues - Real Estate Taxes in District of Columbia

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Tax Rates and Revenues

Property Taxes

Real Property Tax

All real property, unless expressly exempted, is subject to the real property tax and is assessed at 100% of market value - Class 1 = $0.85 per $100 of assessed value

The District of Columbia has three property classes:

Class 1 – improved residential real property that is occupied and is used exclusively for nontransient residential dwelling purposes
Class 2 – commercial property
Class 3 – unimproved or abandoned property

Note: For Class 1 residential real property that is owner-occupied, the first $67,500 of assessed value is exempt from tax.

Class 2 = $1.65 per $100 for the first $3 million of assessed value; $1.85 per $100 for assessed value more than $3 million

Class 3 = $10.00 per $100 of assessed value

DC Code Citation: Title 47, Chapters 7-14.

Deed Recordation Tax

The recording of all deeds to real estate in the District. The basis of the tax is the value of consideration given for the property. Where there is no consideration or where the consideration is nominal, the tax is imposed on the basis of the fair market value of the property - 1.45% of consideration or fair market value

Note: For residential properties under $400,000, the rate is 1.1% of consideration or fair market value.

DC Code Citation: Title 42, Chapter 9.

Deed Transfer Tax

Each transfer of real property at the time the deed is submitted for recordation. The tax is based upon the consideration paid for the transfer. Where there is no consideration or where the amount is nominal, the basis of the transfer tax is the fair market value of the property conveyed - 1.45% of consideration or fair market value

Note: For residential properties under $400,000, the rate is 1.1% of consideration or fair market value.

DC Code Citation: Title 47, Chapter 9.

Personal Property Tax

All tangible property, except inventories, used or available for use in a trade or business. Such property includes machinery, equipment, furniture, and fixtures - $3.40 per $100 of assessed value

Notes: The first $225,000 of taxable value is excluded from tax.

17.4 percent of the tax, not to exceed $10 million, will be deposited in the Neighborhood Investment Fund.

DC Code Citation: Title 47, Chapter 15-17.