DC increases Homestead Deduction for second straight year

For the second straight year, the DC Office of Tax and Revenue increased the Homestead Deduction benefit from $69,100 to $70,200 for those DC residents who own and occupy their property as their principal residence. This results in an annual property tax bill reduction of $596.70.

Per the DC Office of Tax and Revenue, in order to qualify for the deduction, the homeowners must:

  • Submit an application with the Office of Tax and Revenue;
  • Occupy the property, and the property must not contain more than 5 dwelling units (including the unit occupied by the owner); and
  • Use the property as their principal residence
If the DC property owner files an application and it is approved by the Office of Tax and Revenue between October 1 and March 31, the benefit will be granted to the homeowner for the entire tax year and all future tax years. 

If the application is filed and approved between April 1 and September 30, the benefit will be granted for the second half tax bill of that year and all future tax years.

You can complete the new form online, or visit the Office of Tax and Revenue’s Homestead Deduction website link for additional information.

Comments (2)

  • Emilee


    12 February 2015 at 17:20 | #

    Does the homestead deduction if you choose to rent the property?


    • webmaster


      12 February 2015 at 17:26 | #

      The Homestead Deduction benefit is only applicable if you are a resident of the District of Columbia, own the property and live in it as your principal residence. If you're renting the property yourself or if you own a property that you're renting to someone else while living in a different property, you would not qualify.


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