Sheet DC · TY 2026–27 rules
District of Columbia Property Tax Calculator
The District is the one jurisdiction here with a single real property tax and no local layers, so its calculator needs no local rate: $0.85 per $100 on Class 1 B residential value after the homestead deduction, limited by the 10% assessment cap credit.
Rules verified 8 primary sources Editorial policy
Estimate your TY 2026–27 District of Columbia bill
- Tax — Class 1 B residential —
- Credits subtracted —
- Fixed charges added —
How District of Columbia turns value into a tax bill
| Step | District of Columbia rule | Source |
|---|---|---|
| Value | OTR assesses every property at 100% of estimated market value as of January 1 before the tax year (January 1, 2026 for TY 2027). | [7] |
| Assessment | 100% of assessed market value | [7] |
| Annual limit | Assessment Cap Credit: a homestead’s taxable assessment may rise at most 10% a year (2% for owners receiving senior or disabled relief); OTR shows the difference as a credit on the bill.Computed as last year’s taxable assessment × 110% (102% with senior relief), less the year’s increase in the homestead deduction, never below 40% of current assessed value. Lost for a year after a sale. Modeled for owners who received the credit last year (D.C. Code § 47-864(b)(1)(B)). | [3][5] |
| Exemption | Homestead deduction (TY 2027 amount you enter): the actual approved amount you enter off assessed value; all levies.Owner-occupied principal residence (domicile) in a property with no more than five units; application on file with OTR. $67,500 in statute, indexed every October 1. | [1][5] |
| Exemption | Disabled veterans’ homestead deduction: $445,000 off assessed value; all levies.Replaces the regular deduction. Veteran rated totally and permanently disabled by a service-connected condition (or paid at the 100% unemployability rate), owning at least 50%, principal residence, household federal AGI under $163,500 for TY 2026. Does not combine with the cap credit or senior relief. | [1][5] |
| Rate | Class 1 B residential: $0.85 per $100 up to the actual indexed threshold you enter; $1.00 per $100 above $2,558,000.One District-wide rate for a house or condo with no more than two units: $0.85 per $100 up to $2.558 million of taxable value, $1.00 per $100 above. OTR’s rate page gives the indexed $2.558 million threshold. | [2][6] |
| Credit | Senior citizen or disabled owner relief: 50% of the tax computed on the taxable assessment (D.C. Code § 47-863). Owner of at least 50%, 65 or older or permanently and totally disabled, household federal AGI under $163,500 for TY 2026. | [4][5] |
District of Columbia property tax rules in brief
There are no county, city or school-district levies in the District; one real property tax is set by class and expressed per $100 of assessed value26.
Since tax year 2025, owner-occupied houses and condominiums with no more than two dwelling units fall in Class 1 B, taxed at $0.85 per $100 up to an indexed threshold that OTR now lists as $2.558 million and $1.00 per $100 above it26.
Tax year 2027 runs from October 1, 2026 through September 30, 2027 and is based on values as of January 1, 2026; bills are paid in two halves7.
The homestead deduction started at $67,500 and is raised every October 1 by a cost-of-living adjustment rounded down to $50: $89,850 for TY 2025 and $91,950 for TY 2026, which OTR says saves $781.58 a year158.
The Assessment Cap Credit does not lower the assessment on the notice. It appears on the bill as a credit equal to the rate times the taxable value above the capped amount35.
Owners who also receive senior or disabled relief have the cap tightened to 2% a year, and that relief then halves the tax on the taxable assessment34.
A totally and permanently disabled veteran meeting the income limit takes a $445,000 deduction in place of the regular one, and from October 1, 2025 a qualifying surviving spouse may as well15.
Worked example
TY 2026, $600,000 assessed value, approved homestead, no cap credit (first year after purchase). Taxable assessment = 600,000 − 91,950 = 508,050. Tax = 508,050 ÷ 100 × $0.85 = $4,318.43 (statutory rate, not illustrative).
| Line | Taxable value | Tax |
|---|---|---|
| Class 1 B residential at the statutory bands | $508,050.00 | $4,318.43 |
| Annual total | $4,318.43 |
Left to your local bill
- The Assessment Cap Credit for a home that did not receive it last year (first year after a sale, or a new homestead application), which starts from last year’s assessed value instead of last year’s taxable assessment
- Class 1 A (three or more units), Class 2 commercial, Class 3 vacant ($5.00 per $100) and Class 4 blighted ($10.00 per $100) rates
- Half-year proration when a homestead application is approved partway through the tax year
- Low-income senior tax deferral, the Schedule H income-tax credit, the trash collection credit, the Lower Income Home Ownership exemption and cooperative pass-through rules
- Penalties, interest and tax-sale charges on late bills
Census context, not a rate
American Community Survey 2020–2024: median owner-occupied value $737,100 (±$10,625), median real-estate taxes $4,312 (±$97). Dividing one by the other gives 0.58% for District of Columbia. Tables B25077 and B25103; why it is only context.
Sources
- code.dccouncil.govD.C. Code § 47-850(a), (a-2), read .
“the Mayor shall deduct $67,500, increased annually, beginning October 1, 2012, by the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded to the next lowest multiple of $50), from the assessed value of real property which qualifies as a homestead.”
- code.dccouncil.govD.C. Code § 47-812(b-12), read .
“For the first $2,500,000 of taxable assessed value, $0.85 of each $100 of taxable assessed value; and (ii) For the portion of the taxable assessed value above $2,500,000, $1.00 of each $100 of taxable assessed value.”
- code.dccouncil.govD.C. Code § 47-864(b), read .
“Multiply the prior tax year's taxable assessment by 110%; provided, that for real property receiving in whole or in part the homestead deduction under § 47-850 or § 47-850.01 and the tax relief deduction provided under § 47-863 , the multiplier shall be 102%”
- code.dccouncil.govD.C. Code § 47-863(b)(1), read .
“In the case of a house or condominium, an eligible household shall be eligible for a 50% deduction in computing real property tax liability. The deduction shall be computed by multiplying the tax rate by 50% of an amount equal to the current tax year's taxable assessment.”
- otr.cfo.dc.govDC Office of Tax and Revenue, Real Property Tax Reliefs, Credits, and Deductions, read .
“This deduction reduces your real property's assessed value by $91,950.00 for tax year 2026 prior to computing the yearly tax liability. This is a saving $781.58 from your annual real property tax bill.”
- otr.cfo.dc.govDC Office of Tax and Revenue, Real Property Tax Rates, read .
“Class 1B – Residential real property with no more than two dwelling units: The first $2.558 million of assessed value is taxed at $0.85 per $100. Any amount above $2.558 million is taxed at $1.00 per $100.”
- otr.cfo.dc.govDC OTR, Tax Year 2027 Assessment Reference Materials, read .
“develop an opinion of the value of the entire taxable and tax-exempt properties in the District of Columbia as of January 1, 2026, the statutory valuation date. ... determine the appropriate real property tax levy for Tax Year 2027.”
- web.archive.orgDC Office of Tax and Revenue, Real Property Tax Reliefs, Credits, and Deductions (archived June 2025 copy), read .
“This deduction reduces your real property's assessed value by $89,850.00 for tax year 2025 prior to computing the yearly tax liability.”
Bordering jurisdictions
Elsewhere in the region:
Rules verified by the Property Tax Calculator Editorial Team. Report a correction