New thresholds for DC Tax Abatement
Purchase price and income thresholds to qualify for the popular DC Tax Abatement Program have increased, hopefully making it easier for more homebuyers to become homeowners.
The District of Columbia Office of Tax and Revenue upped the purchase price threshold to $375,200 from $367,200.
At the same time, the income threshold for a single buyer increased to $57,540 from $56,100 while the income threshold for a two-person household increased to $65,760 from $64,080.
In "Economic Development Zones," the income limits are higher. For a single buyer, it's $65,890 and for a couple it's $75,350.
For more on income limitations and the DC Tax Abatement Program, please visit our page on the DC Tax Abatement Program.
The most recent data, which is for October, shows a $400,000 median sales price in the District, the highest October-level in nine years. The October median sales price was 2.6 percent higher than September and 5.3 percent higher than the previous year.
The DC Tax Abatement Program provides an exemption from the DC 1.1% Recordation Tax and an allowable credit from your seller(s) of 1.1% equal to the DC Transfer Tax. Additionally, the program provides a five-year real estate tax abatement that begins October 1 following your date of closing.