DC imposes TWO separate taxes on real estate transfers that together function as the "transfer tax burden": (1) a Transfer Tax (DC Code Title 47, Ch. 9) and (2) a Recordation Tax (DC Code Title 42, Ch. 11) on the deed. Both use the same rate schedule for residential property: 1.1% of consideration/fair market value if the price is below $400,000, and 1.45% on the ENTIRE amount if the price is $400,000 or more (not just the excess — it's a cliff/threshold, not a marginal bracket). Since both taxes apply to most sales, the combined government tax burden is effectively ~2.2% (under $400k) or ~2.9% (at/above $400k) of the sale price, split between the two parties (each typically owes one of the two taxes — see below). Commercial and mixed-use property, and transfers of an "economic interest" in real property, are taxed at a flat combined 2.9% regardless of price (no threshold). DC is a single unified city-state jurisdiction under the DC Office of Tax and Revenue — there are no counties, so the rate is uniform citywide with no sub-jurisdiction variation (unlike neighboring Maryland or Virginia counties).
Seller closing costs (excluding commission): roughly 2.5%-3% of sale price (this is mostly the transfer tax). Buyer closing costs: roughly 2%-5% of purchase price (recordation tax, loan/lender fees, title, recording fees). When real estate agent commissions (typically ~4%-6% total, customarily seller-paid) are included, total seller-side transaction costs commonly reach roughly 7%-9% of the sale price.
Who typically pays: DC local custom (not law — negotiable and must be spelled out in the contract): the SELLER customarily pays the Transfer Tax, and the BUYER customarily pays the Recordation Tax (plus any additional recordation tax on their mortgage/deed of trust if financing). Real estate commissions are customarily paid by the seller. All of these allocations are negotiable between parties and can be shifted or split via contract terms or seller credits.
Key nuance: DC has no counties/cities within it to create sub-jurisdiction variation — it's one uniform citywide rate, unlike MD or VA where counties add their own layers. Notable special program: DC's "Reduced Recordation Tax Rate for First-Time Homebuyers" lowers the buyer's recordation tax to a flat 0.725% (half the standard rate) for eligible owner-occupants on properties up to a price cap (sources cite up to $777,000, tied to conforming loan limits, and the program has specific income and residency eligibility rules that should be verified against the current OTR ROD 11 form for the applicable fiscal year). The seller's transfer tax is NOT reduced by this program — only the buyer's recordation tax. The 1.45% rate applying to the WHOLE price (not just the amount above $400,000) once the $400,000 threshold is crossed is a common point of confusion/underestimation. Sources are a mix of DC government (cfo.dc.gov, otr.cfo.dc.gov, code.dccouncil.gov) and real estate/title industry sites; the government sources are authoritative for rates, but I could not directly load a primary OTR PDF for the exact current-year first-time-homebuyer price cap, so that specific dollar figure should be double-checked against the live OTR ROD 11 publication before publishing as a hard number.
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.