DC Property
Tax Relief

Comprehensive guide to the Homestead Deduction, including property tax relief programs for senior citizens and disabled persons

DC Homestead Deduction

Your property’s assessed value for tax purposes could be reduced by as much as $74,850 with the Homestead Deduction. Second, you are entitled to an assessment cap such that your property may not be taxed on more than a 10% increase in the property’s assessed value each year.

To qualify, homeowners must satisfy four criteria:
  • 1. File an application with the Office of Tax and Revenue. Your title company should be able to assist with this during the closing process.
  • 2. The property, which cannot include more than five dwelling units, must be your principal residence.
  • 3. You must be domiciled in the District of Columbia, meaning you have a DC government-issued ID, you are registered to vote in DC and you file DC Personal Income taxes.
  • 4. Generally, you must be a US Citizen. Some G-4 visa holders may qualify as residents by providing a letter from their international organization employer.

Homestead Deduction FAQs

When should I complete the application?

You should apply at the time of your closing or shortly thereafter.

Federal Title can help you complete your application at the time of closing and, as a complimentary service, file the application on your behalf.

When does the Homestead Deduction take effect?

A properly completed and approved application filed from October 1 to March 31 will receive the Homestead Deduction benefit for the entire tax year (and for all tax years in the future).

A properly completed and approved application filed from April 1 to September 30 will receive one-half of the benefit reflected on the second-half tax bill (and full deductions for all tax years in the future).

When should I cancel my Homestead Deduction?

Essentially, if the property is no longer your principal residence, then you must fill out a Cancellation of Homestead Benefit form.

This means that if you moved off the property and are renting it out you must fill out the form. If you purchased another property in DC and filed for a Homestead Deduction on the property then you must fill out the form.

Don’t fall victim to the District of Columbia’s Homestead Deduction Audit Program.

Can I have a Homestead Deduction on two properties?
You cannot. You may only claim one property as your primary residence, and you cannot maintain a Homestead Deduction on a non-owner occupied property. If you no longer occupy a property that currently receives the Homestead Deduction benefit, you must notify the Office of Tax and Revenue when eligibility ceases.
My parents are going to be on title with me – can I still get the Homestead Deduction?
As long as you are a co-owner who will live in the property as your principal residence, and will be domiciled in DC, the fact that your parents are also co-owners but are not living in the property will not matter. You will need to include your parents’ names and social security numbers on the application, but they do not need to sign it.
What if the property is titled in the name of my trust – can I still get the Homestead Deduction?

Yes, assuming you occupy the property as your principal residence and you are the grantor, settlor, or trustor, and a beneficiary of the revocable trust, you may claim the Homestead Deduction.

Other types of trusts and partnerships may also qualify for the Homestead Deduction benefits. For more information or questions, please contact us.

Senior Citizens Tax Relief

Eligible seniors can save 50% on their property tax bills.

to be eligible:
  • At least one owner of the property must be 65 of older.
  • Total household adjusted gross income must be less than $125,000.
  • The senior must have at least 50% ownership of the property to qualify.

Property Tax Relief for Disabled

To qualify for property tax relief for disabled, at least one owner must be certified by the Social Security Administration (SSA) as permanently and totally disabled or be receiving District or Federal disability payments and have at least 50% ownership of the property.

Total household federal adjusted gross income for 2018 must be less than $134,550 for tax year 2020. Applicants must also meet the criteria for receiving the DC Homestead Deduction.

Property Tax Relief Application
DC Homestead Deduction / Senior Citizen / Disabled

Download a copy »

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