Washington DC Property Taxes: What Homeowners, Sellers and Buyers Should Know

How much are property taxes in Washington, DC?

Most homes in DC are taxed at $0.85 for every $100 of assessed value, or 0.85% of the assessment each year. For a single-family house or a home with two units, the portion of the assessment above about $2.56 million is taxed at a higher rate of $1.00 per $100. If you live in the home and have applied for the homestead deduction, the first $91,950 of the assessment is not taxed at all, which saves about $782 a year.

That makes DC's rate one of the lowest in the region. On a home assessed at $1,500,000 with the homestead deduction, the bill comes to about $11,970 a year. This guide explains how the bill is figured, the 10% cap that protects owners who live in their homes, why a buyer's bill is often higher than the seller's, and how taxes are handled when a home sells in Upper Northwest DC and the rest of the city.

How the Bill Is Figured

A DC property tax bill comes down to three things:

• The assessed value. The DC Office of Tax and Revenue values every property every year, based on the market as of January 1.
• The rate. $0.85 per $100 for residential property. For a house with no more than two units, the portion above about $2.56 million is taxed at $1.00 per $100.
• The credits and deductions you have applied for. For most owner-occupants, that means the homestead deduction and the assessment cap described below.

Unlike Maryland, there is no separate county, town or special district tax layered on top. One rate applies across the city, so two similar houses in Spring Valley and Chevy Chase pay the same rate. Their bills differ only because their assessments and credits differ.

Vacant and blighted properties are the exception. They are taxed at much higher rates, which is why an empty house that is not being lived in, sold or renovated can become expensive to hold.

A Few Examples

These estimates use the residential rate and assume the owner lives in the home and has the homestead deduction:

• Assessed at $1,000,000: about $7,720 a year.
• Assessed at $1,500,000: about $11,970 a year.
• Assessed at $2,000,000: about $16,220 a year.

Above about $2.56 million, the higher rate applies to the amount over that line. A house assessed at $3,000,000, for example, pays about $26,160 a year before the homestead deduction. Your own bill may differ depending on the credits on file, so the most reliable number is the one on the MyTax.DC.gov record for the address.

The Homestead Deduction: Apply as Soon as You Move In

If a DC home is your principal residence, the homestead deduction takes $91,950 off the assessed value before the tax is calculated. It is not automatic. Each new owner has to apply.

Timing matters. An application approved between October 1 and March 31 gets the full year's benefit. One filed between April 1 and September 30 gets half the benefit, on the second-half bill. The settlement company will usually give you the application at closing, but filing it is up to you, so send it in soon after you move in.

The homestead deduction also does something more valuable over time: it is what turns on the 10% assessment cap.

The 10% Cap: Why a Seller's Bill Isn't the Buyer's Bill

For owners who live in their homes and receive the homestead deduction, DC limits the taxable assessment to an increase of no more than 10% a year, no matter how much the market value rises. In neighborhoods where values have climbed for years, such as Wesley Heights, Spring Valley and American University Park, a long-time owner may be taxed on far less than the home's full assessment.

The cap does not carry over to the next owner for long. A buyer keeps the seller's cap only for the half of the tax year in which the purchase happens. After that, the buyer is taxed on the full assessment until their own homestead application is approved and their own cap begins.

For example, if a home is assessed at $1,500,000 but the long-time owner is taxed on $1,100,000 because of the cap, the seller's bill is about $8,570 a year. The buyer's bill, based on the full assessment, would be about $11,970, roughly $3,400 more. Until the buyer's homestead deduction is approved, it would be about $12,750.

If you are buying, estimate taxes on the full assessment, not the tax figure in the listing, and apply for the homestead deduction right after settlement. Your lender will usually set your escrow on the full assessment as well.

If you are selling, it helps to know this before buyers ask. Explaining early why the buyer's taxes will be higher keeps it from becoming a surprise during the loan process.

When Taxes Are Due

DC's tax year runs from October 1 to September 30, and it is billed in two halves:

• First half, covering October 1 through March 31, is due March 31.
• Second half, covering April 1 through September 30, is due September 15.

If you have a mortgage, your lender usually pays from your escrow account. It is still worth checking each bill on MyTax.DC.gov to confirm it was paid and that your homestead deduction appears on it.

Your Assessment, and How to Appeal It

DC reassesses every property every year. Assessment notices go out early in the year, usually by March 1, and the notice states the deadline for an appeal, which is generally about a month later. If you think your assessment is too high, recent sales of similar homes nearby, or problems with your home's condition that an assessor would not see from the street, are the most useful evidence.

A lower assessment does more than reduce one year's bill. For an owner with the 10% cap, it also lowers the base that future increases are measured from.

How Property Taxes Work When You Sell

DC taxes are paid near the end of each half-year, so at settlement the current half is often not yet paid. In that case, the seller credits the buyer for the days of the current half the seller owned the home, and the buyer pays the full bill when it comes due. If the seller has already paid the current half, the buyer reimburses the seller for the days after settlement. Either way, each side pays for the time they own the home.

All taxes must be current before the deed is recorded, and the settlement company confirms this before closing. Property taxes are only one part of the settlement statement. My guides to DC transfer tax for sellers and seller net proceeds in DC, Maryland and Virginia cover the rest, and what happens after you accept an offer walks through the weeks between contract and settlement.

Other Relief Worth Knowing About

DC offers a 50% reduction in property taxes for owners who are 65 and older or who have a disability, if their household income is under the limit set each year. There are also programs for disabled veterans and for owners with limited incomes. Each requires an application. The Office of Tax and Revenue lists the current programs and limits.

DC Compared With Montgomery County

If you are deciding between the two sides of the line, the rates are quite different. Most homes in Montgomery County pay a combined rate of about $1.15 per $100, compared with DC's $0.85. On a $1.5 million home, that can be a difference of several thousand dollars a year. Both places cap how fast an owner-occupant's taxable assessment can rise, and in both the buyer usually pays more than the long-time seller did. My guide to Montgomery County property taxes covers the Maryland side, and my guide to Chevy Chase DC versus Chevy Chase, Maryland compares the two neighborhoods directly.

What This Means in Upper Northwest DC

Taxes matter most at the top of the market, where the higher rate applies and where the gap between a long-time owner's capped assessment and the full value is largest. They have not slowed the market down. In September, detached houses in Upper Northwest DC sold at a median 97.5% of their original asking price, and well-priced homes sold in about ten days. My September Upper Northwest DC market update has the full numbers.

For neighborhood detail, see my guides to Wesley Heights, Spring Valley, American University Park and Chevy Chase. I also work in Bethesda, Chevy Chase MD, Arlington, Alexandria and McLean.

Frequently Asked Questions

What is the property tax rate in Washington, DC?

Residential property in DC is taxed at $0.85 per $100 of assessed value. For a home with no more than two units, the portion of the assessment above about $2.56 million is taxed at $1.00 per $100.

How much is the DC homestead deduction?

For tax year 2026, the homestead deduction is $91,950, which saves about $782 a year. Owners must apply, and the home must be their principal residence.

How much can my DC property taxes go up each year?

If you live in the home and receive the homestead deduction, your taxable assessment can rise no more than 10% a year.

Will my property taxes go up when I buy a house in DC?

Often, yes. The seller's 10% cap stays with the home only for the half of the tax year in which you buy it. After that, you are taxed on the full assessment until your own homestead application is approved.

When are DC property taxes due?

The first half, covering October through March, is due March 31. The second half, covering April through September, is due September 15.

Are property taxes lower in DC or Montgomery County?

DC's residential rate of $0.85 per $100 is lower than the combined rate of about $1.15 per $100 that most homes in Montgomery County pay.

Thinking About Selling or Buying in DC?

Whether you want to know what a buyer will pay in taxes on your home or what your own bill will look like after you buy, I'd be glad to walk through the numbers with you. Call or text me at 202.536.4043, email sherine@smdg-llc.com, or request a home value review. My selling guide and buying guide cover the rest of the process. Sherine is here whenever you're ready.

Sources: DC Office of Tax and Revenue, real property tax rates, tax relief, credits and deductions and tax bill due dates, retrieved October 27, 2026. Rates and deduction amounts can change each year. This is general information, not tax or legal advice.

About Sherine Monir

Sherine Monir is a Realtor with Compass and also a licensed Interior Designer in DC (NCIDQ, CID, ASID), with a master's degree in interior design from Marymount University. Licensed in DC, Maryland and Virginia since 2013, she has sold over 200 homes totaling more than $115 million and is ranked in the top 5% of DC Metro agents. She was named to RealTrends America's Best 2026 (top 1.5% nationally), is a Washingtonian Elite Producer and Bethesda Magazine Top Producer, and is a DC Real Estate Awards honoree. She represents sellers and buyers across Upper Northwest DC, Bethesda, Chevy Chase, Arlington, Alexandria and McLean. Compass, 1313 14th Street NW, Washington DC 20005. Office 202.386.6330.