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Property Taxes in District of Columbia

Effective Rate

Washington, DC has one of the lowest effective property tax rates in the country. Current estimates for 2026 put DC's average effective rate at roughly 0.55%–0.65% of assessed home value (some sources cite a slightly higher blended figure around 0.78% depending on methodology and whether the homestead deduction is factored in). This compares to the ~0.99%–1.02% national average, meaning DC homeowners typically pay only about half to two-thirds of what the average U.S. homeowner pays as a share of home value. The low effective rate is driven by DC's relatively low nominal Class 1 residential rate combined with high assessed home values. Nominal (statutory) rates set by DC Code § 47-812 / OTR: Class 1A (multifamily residential) = $0.85 per $100 of assessed value; Class 1B (residential with ≤2 dwelling units, e.g., single-family homes/rowhouses) = $0.85 per $100 on the first $2.558 million of assessed value, with any excess taxed at $1.00 per $100.

Example: On a median-valued DC home (~$724,600 in one 2026 estimate), the median annual property tax bill is approximately $4,180. After applying the standard Homestead Deduction (which cuts $91,950 off assessed value before the $0.85/$100 rate is applied), an eligible owner-occupant saves about $781.58/year off that bill — bringing many owner-occupied bills down further from the "sticker" nominal-rate figure.

Exemptions

Homestead Deduction
Amount: Reduces assessed value by $91,950 for tax year 2026 (saving $781.58/year at the $0.85 rate)
Available to DC homeowners who occupy the property as their principal residence; must file a one-time application with OTR (via MyTax.DC.gov or paper form). No income limit for the base Homestead Deduction itself.
Senior Citizen / Disabled Property Owner Tax Relief
Amount: 50% reduction of the property tax bill (after Homestead Deduction is applied)
Available to owners age 65+ or with a qualifying disability; requires household federal AGI (2024 income, for tax year 2026) under $163,500; owner must hold at least 50% ownership and property must be primary residence with 5 or fewer dwelling units.
Assessment Cap Credit
Amount: Limits annual taxable assessment increase to 10% per year for homestead properties
Protects owner-occupants from sudden large tax increases when market assessments spike; applies automatically to properties already receiving the Homestead Deduction.

DC's real property tax system is unusual: it has no separate "state," county, or school district layers to stack (DC functions as a consolidated city-state), which is part of why its effective rate looks low relative to states despite high home values. However, published effective-rate figures vary noticeably by source (roughly 0.55%–0.78%) depending on whether they use raw assessed value, post-homestead taxable value, or include commercial-class blended rates, so treat any single "DC effective rate" figure as an approximation. Homeowners should confirm current-year assessed value and applied deductions directly via MyTax.DC.gov or the OTR real property tax portal, since assessments and the Homestead Deduction dollar amount are adjusted for each tax year.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
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