DC First-Time Homebuyer Benefit
DC Tax Abatement Program
Exemption from recordation tax at settlement and up to 5 years of property tax relief for qualifying lower-income first-time homebuyers in the District of Columbia.
Program Overview
The DC Tax Abatement Program assists lower-income first-time homebuyers in the District of Columbia. Qualified applicants receive an exemption from DC Recordation Tax at settlement and become exempt from property taxes for their first 5 years of homeownership, beginning the next full tax year after closing.
For properties under $400,000, qualifying buyers save approximately 2.2% of the purchase price in combined recordation and transfer taxes — plus years of property tax savings.
Eligibility Requirements
Purchase Price Limit
The maximum purchase price is $576,000. Properties above this threshold do not qualify for the Tax Abatement Program.
Household Income Limits
| Household Members | Income Limit |
|---|---|
| 1 | $89,760 |
| 2 | $102,540 |
| 3 | $115,380 |
| 4 | $128,160 |
| 5 | $138,420 |
| 6 | $148,680 |
| 7 | $158,940 |
| 8 | $169,200 |
Domiciliation in DC
Applicants must be domiciled in DC, which requires all of the following:
- Obtaining a DC government-issued ID
- Registering to vote in DC
- Filing DC Personal Income taxes
Property Requirements
The property must serve as the purchaser's primary residence. The purchaser must actually live in the property to maintain eligibility.
Required Documentation
Applications require the following documents. Federal Title assists with the FP-420 filing process at closing:
- Completed FP-420 application form
- Copy of the Closing Disclosure
- Fully executed sales contract
- W-2 forms
- Proof of household income
- Employment verification or notarized affidavits for non-working household members
- Profit and loss statements for self-employed applicants
Applications may be filed up to 3 years after the closing settlement date.
Ready to Take Advantage of DC Tax Abatement?
Federal Title guides qualifying buyers through the DC Tax Abatement application process at closing. Get a guaranteed quote and see your full savings picture.