DC Real Property Tax Rates
DC real property is taxed based on its classification. A tax rate is the amount of tax on each $100 of the assessed value of the property.
How are DC property tax rates computed?
DC real estate property tax rates are set by the Council of the District of Columbia, and administered by the DC Office of Tax And Revenue. The property tax rate may change annually.
The amount of tax due is determined by dividing the assessed value of the property by $100, then multiplying that amount by the applicable tax rate for the property.
For example, a property classified as Class 1, has a tax rate of $0.85. It is assessed at $100,000. To determine the tax, divide $100,000 by 100 for a sum of $1,000. Multiply $0.85 by $1,000. The annual tax is $850. (before the homestead deduction, senior citizen deduction, and/or trash credits).
If a property is classified as Class 2, the tax rate varies according to the property’s value. For instance, commercial and industrial property valued under $5M is taxed at a rate of $1.65. Assessed at $100,000. divided by 100, multiplied by $1,000., the annual tax is $1,650.
But if that Class 2 property is assessed at $3.5M, the tax is computed at a split rate of $1.65 for $3M of the property assessment, and $1.85 for the balance ($500,000): Divide $3 million by 100. That amount is $30,000. Multiply $1.65 by $30,000. That result is $49,500, which is the tax on $3 million of the total assessment. The balance of the total assessment, $500,000, is divided by 100. That amount is $5,000. Multiply $1.85 by $5,000. That result is $9,250. The total annual tax is the sum of the tax on $3M ($49,500) and the tax on the balance of $500,000 ($9,250), which totals $58,750.
To learn more about Vacant and Blighted property tax rates (Classes 3 & 4), refer to the OTR.
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Real Property Tax Rates
| Class | Tax Rate per $100 | Description |
|---|---|---|
| 1 | $0.85 | Residential real property, including multifamily |
| 2 | $1.65 | Commercial and industrial real property, including hotels and motels, if assessed value is not greater than $5 million |
| 2 | $1.77 | Commercial and industrial real property, including hotels and motels, if assessed value is greater than $5 million but not greater than $10 million |
| 2 | $1.89 | Commercial and industrial real property, including hotels and motels, if assessed value is greater than $10 million |
| 3 | $5.00 | Vacant real property |
| 4 | $10.00 | Blighted real property |
DC Property Tax Assessments
DC Code § 47-823(c) requires OTR to publish a real property assessment/sales ratio study. The report measures assessment quality by looking at the most recent assessment program and comparing the results of that effort to actual market conditions. View the studies
If a DC taxpayer feels their property tax assessment is incorrect, information on appeals and other remedies can be found here.
DC Property Tax Programs
District of Columbia property owners may be eligible for property tax relief. The District offers several programs to assist property owners and first time homebuyers. Select from the following programs to check eligibility and filing requirements. For more information about these tax relief and credit programs, contact the DC Office of Tax & Revenue at 202.727.4829.
The following are some programs to research:
Assessment Cap Credit
The housing market in the District of Columbia has caused a surge in the assessed value of residential real property. In an effort to limit the increase of real property taxes for homeowners, eligible homeowners will be provided an Assessment Cap Credit.
The Assessment Cap currently provides that a property may not be taxed on more than a 10% increase in the property’s assessed value each year. This credit does not reduce the assessed value of your property on the tax roll or the assessment notice, but it will appear as an automatic credit against your real property tax bill.
Senior Assessment Cap Credit
For more information, property owners may call the OTR Customer Service Center at (202) 727-4TAX (727-4829). If you have been denied the Assessment Cap Credit and you believe that you are eligible, please contact the Homestead Unit, PO Box 176, Washington, DC 20044 or call Customer Service at (202) 727-4TAX (727-4829).
Homestead Deduction
Reduces real property’s assessed value by $78,700 prior to computing the yearly tax liability.
The Homestead benefit is limited to residential property.
DC Historic Properties Program
DC Office of Planning
Historic Preservation Division
801 North Capitol Street, NE, Suite 3000
Washington, DC 20002
Phone: (202) 442-8800
Fax: (202) 535-2497
Code of the District of Columbia § 47–844. Historic property tax relief
Agreements for maintenance and use of buildings.
The Council may provide that the owners of historic buildings which have been so designated by the Joint Committee on Landmarks of the National Capital may enter into agreements with the government of the District of Columbia for periods of at least 20 years which will assure the continued maintenance of historic buildings in return for property tax relief.
Requires reasonable assurance that such buildings will be used and properly maintained to encourage the preservation of historic buildings. Read more
Owners of historic properties that are income-producing (all or part of a building) may be eligible for a 20% income tax credit for rehabilitation work. Detailed information regarding the Federal Rehabilitation Tax Credit Program is available on the National Park Service website.
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