DC Property Tax Relief
DC Homestead Deduction
Property tax relief for DC homeowners who occupy their property as a primary residence — with additional savings available for seniors and disabled persons.
Key Benefits
$85,000 Assessed Value Reduction
Qualifying homeowners receive a deduction of up to $85,000 from the assessed value of their property, directly lowering the taxable base.
10% Annual Assessment Cap
An assessment cap prevents taxation on more than a 10% annual increase in assessed value, protecting homeowners from sudden spikes in property taxes.
Qualification Criteria
To qualify for the DC Homestead Deduction, all four of the following conditions must be met:
File an Application
Submit an application with the DC Office of Tax and Revenue. Title companies — including Federal Title — can assist during the closing process.
Property Requirements
The property cannot exceed five dwelling units and must be your principal residence.
DC Domicile
You must be domiciled in DC, meaning you possess a DC-issued ID, are registered to vote in DC, and file DC income taxes.
U.S. Citizenship
Generally, you must be a U.S. Citizen. Some G-4 visa holders may qualify with employer verification.
Application Timeline
October 1 – March 31
Applications filed during this period receive full-year benefits for the upcoming tax year.
April 1 – September 30
Applications filed during this period receive half benefits on the second-half tax bill, with full deductions for future years.
Important Restrictions
- Only one property per person can receive the deduction.
- You must cancel the deduction if the property is no longer your primary residence.
- Properties rented out must have the deduction cancelled.
- You cannot maintain the deduction on non-owner-occupied properties.
Additional Relief for Seniors & Disabled Persons
Senior Citizens
Eligible seniors age 65 or older can save approximately 50% on property taxes if household income is under $125,000 and they own at least 50% of the property.
Disabled Persons
Requires SSA certification or disability payment documentation, at least 50% ownership, and household income under $134,550.
We'll Help You Apply at Closing
Federal Title assists DC homebuyers with the Homestead Deduction application during the closing process. Get started with a guaranteed quote today.