DC makes the Homestead Deduction a little sweeter
Last week, the DC Office of Tax and Revenue increased the Homestead Deduction benefit from $67,500 to $69,100. This benefit is applied as a reduction to a propertyâ€™s assessed value for the purpose of computing the annual tax liability.
The Homestead Deduction benefit is granted to those DC residents who own and occupy their property as a principal residence. For those DC property owners who qualify, the new increased benefit will reduce the annual property tax bill by $587.35.
From the DC Office of Tax & Revenue
The Homestead benefit is limited to residential property. To qualify:
- An application must be on file with the Office of Tax and Revenue;
- The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner); and
- The property must be the principal residence of the owner/applicant.