DC Tax Abatement breakdown

By Catherine Schmitt
General Counsel, Federal Title

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.

In order to qualify, the total gross household income must not exceed:

• $53,760 for 1 person in household
• $61,440 for 2 persons in household
• $69,120 for 3 persons in household
• $76,800 for 4 persons in household
• $82,920 for 5 persons in household
• $89,100 for 6 persons in household
• $95,220 for 7 persons in household
• $101,400 for 8 persons in household

In addition to meeting the above salary requirements, the property must be owner-occupied by a first-time homebuyer and the purchase price of the property shall not exceed $319,920.00.

You will be required to provide the closing agent copies of the following:

• Copies of your tax returns from the last two years,
• Copies of your W-2s from the last two years,
• Copies of your two most recent paystubs.

For more information in this program, please contact Federal Title & Escrow Company or your Realtor.

(Qualifying Income Table Effective: 04/27/2009)