Property tax in DC is charged on the assessed market value of your land and buildings, with owner-occupied homes taxed at $0.85 per $100 of value. The Office of Tax and Revenue (OTR) handles assessment, billing, and collection, and sends bills in two installments each year. Several deductions and credits can lower what you owe, but most require you to apply.
Tax Rates by Property Class
DC groups every parcel into a class based on how the property is used, and each class has its own rate per $100 of assessed value.
- Class 1A (residential, including multifamily): $0.85 per $100.
- Class 1B (residential with no more than two units): $0.85 per $100 on the first $2,558,000 of assessed value, then $1.00 per $100 on any amount above that.
- Class 2 (commercial, industrial, hotels, and rental properties): $1.65 per $100 up to $5 million, $1.77 per $100 from $5 million to $10 million, and $1.89 per $100 above $10 million.
- Class 3 (vacant property): $5.00 per $100.
- Class 4 (blighted property): $10.00 per $100.
The jump between classes is deliberate. A vacant lot assessed at $300,000 owes $15,000 a year, roughly six times what a homeowner would owe on the same value, and the blighted rate doubles that again to push owners toward rehabilitation or sale.1DC Office of Tax and Revenue. Real Property Tax Rates
How Your Property Is Assessed
OTR assesses every property in the District annually at full estimated market value.2D.C. Law Library. District of Columbia Code 47-820 – Assessments – Estimated Assessment Roll; Frequency of Assessments Assessors look at recent sales of comparable properties in the same neighborhood, along with lot size, building square footage, condition, and improvements. Local economic trends and housing demand also factor in.
You should receive a notice of proposed assessment in early spring. The value on that notice applies to the tax year that begins the following October 1, and your window to challenge it closes on April 1.
New construction, additions, or major renovations trigger a supplemental assessment outside the annual cycle. Work completed between January 1 and June 30 generates a supplemental notice by September 1; work completed between July 1 and December 31 generates one by March 1.3Real Property Tax Appeals Commission. Types of Filings
Appealing Your Assessment
If the proposed assessment looks too high, you have three levels of appeal. Most homeowners who successfully lower their bill do so at the first level.
First Level: Administrative Review
Petition OTR for an administrative review by April 1 of the tax year preceding the one at issue. File through the MyTax.DC.gov portal by searching for your property and clicking the appeal application link. New owners who purchased during the preceding tax year get 45 days from the purchase date if April 1 has already passed.4DC Office of Tax and Revenue. Real Property Assessment Appeal Rights and Application
Second Level: Real Property Tax Appeals Commission
If OTR’s final determination still feels wrong, you have 45 days from that determination to appeal to the Real Property Tax Appeals Commission (RPTAC). Submit all supporting evidence with the filing: photographs, recent appraisals, settlement statements, comparable sales data, and OTR’s own assessment records. Commercial properties also need income-expense reports and leases.5Real Property Tax Appeals Commission. Preparing to File an Appeal
Third Level: Superior Court
If RPTAC’s decision is unfavorable, you can take the case to the Superior Court of the District of Columbia. At that point you are in litigation, and hiring an attorney is practically necessary. Most residential disputes resolve well before this stage.4DC Office of Tax and Revenue. Real Property Assessment Appeal Rights and Application
Deductions, Credits, and Exemptions
DC offers several programs that meaningfully reduce what homeowners owe. The catch is that most require an application. They do not kick in automatically.
Homestead Deduction
The homestead deduction subtracts $89,850 from the assessed value of your primary residence before the tax rate is applied.6DC Office of Tax and Revenue. Notice of Oct 1 2025 Tax Changes The property must be owner-occupied and used exclusively as a residence. The statute sets a base amount of $67,500 with annual cost-of-living adjustments that have raised it over time.7D.C. Law Library. District of Columbia Code 47-850 – Residential Property Tax Relief – Homestead Deduction for Houses and Condominium Units On a home assessed at $600,000, that saves roughly $764 a year at the Class 1 rate.
Senior and Disabled Resident Relief
Homeowners who are 65 or older, or who have a permanent disability, can qualify for a 50 percent reduction in their property tax bill. You must own at least 50 percent of the property, and total household adjusted gross income must fall below $163,500 for tax year 2026.8D.C. Law Library. District of Columbia Code 47-863 – Reduced Tax Liability for Property Owners Over Age 65 and for Property Owners With Disabilities; Rules The income threshold started at $125,000 in the statute and increases annually with cost-of-living adjustments.
Assessment Cap Credit
Homestead-eligible properties automatically receive a credit that limits how fast their taxable assessed value can rise. For most homeowners, the taxable assessment cannot increase by more than 10 percent from one year to the next, regardless of how much the market value jumps. Seniors and disabled homeowners who receive the relief above get a tighter cap of 2 percent per year.9D.C. Law Library. District of Columbia Code 47-864 – Owner-Occupant Residential Tax Credit Even in a market where your home’s value rises 30 percent in a single year, your taxable assessment only moves up by a tenth.
Schedule H Property Tax Credit
The Schedule H credit is filed with your DC individual income tax return and can benefit both homeowners and renters. For tax year 2025, the income threshold was $68,000 for most residents and $90,000 for those age 70 or older, with a maximum credit of $1,425. These figures adjust periodically, so check the OTR website or the Schedule H instructions for the current numbers when you file.10DC Office of Tax and Revenue. 2025 Schedule H
When Payments Are Due
DC splits the annual property tax bill into two installments. The first half covers October 1 through March 31 and is due by March 31. The second half covers April 1 through September 30 and is due by September 15. If either date falls on a weekend or holiday, the deadline moves to the next business day.11DC Office of Tax and Revenue. Real Property Tax Bill Due Dates and Delayed Tax Bills
Paying Online
The MyTax.DC.gov portal accepts payments by eCheck at no charge. Search for your property by entering your Square, Suffix, and Lot (SSL) number or your street address, then follow the prompts. Payments made before 5 p.m. EST are credited the same day.12DC Office of Tax and Revenue. Real Property/Bid Tax Online Bill Payment
Credit card payments are accepted online but carry a 2.25 percent non-refundable convenience fee charged by the payment processor. On a $3,000 installment, that adds about $68, which is enough to make eCheck the better option for most people.13DC Office of Tax and Revenue. Real Property and Bid Tax Payments and Electronic Bill Notification
Paying by Mail or in Person
You can mail a check or money order to the lockbox address printed on your tax bill. Include the payment voucher and write your SSL number on the check so it posts to the correct account. In-person payments are accepted at authorized financial institutions. Bring your original tax bill so the teller can process it against the right parcel.
Penalties for Paying Late
Missing a due date triggers an immediate 10 percent penalty on the unpaid tax, plus interest at 1.5 percent per month until the balance is paid.14DC Office of Tax and Revenue. Real Property Tax Rates and Billing FAQs That monthly rate works out to 18 percent annually. A homeowner who owes $4,000 and pays six months late would face a $400 penalty plus roughly $360 in interest, nearly $760 on top of the original bill. There is no grace period, so a payment that arrives a day after the deadline still incurs the full 10 percent penalty.
Tax Sales and How to Avoid One
If your property tax debt reaches $2,500 or more, the District can include your property in its annual tax lien sale, typically held each July. The government does not auction your home directly. It sells the right to collect the debt, and if you do not pay off the balance, the purchaser can eventually file a lawsuit to foreclose.15D.C. Law Library. District of Columbia Code 47-1332 – Sale of Properties by Mayor; Exemptions From Sale
Forbearance and Deferral
Homeowners with the homestead deduction whose delinquent balance is $7,500 or less can apply for forbearance at least 30 days before the sale date, and the District must approve it. If the balance exceeds $7,500 or you miss the 30-day deadline, you can still apply, but approval is discretionary.15D.C. Law Library. District of Columbia Code 47-1332 – Sale of Properties by Mayor; Exemptions From Sale
Low-income seniors age 65 or older with household adjusted gross income under $50,000 may qualify for a tax deferral that keeps the property out of the sale altogether. The taxes still accrue at 0.5 percent monthly interest, and the deferred amount becomes due when the property is sold or transferred. Homeowners 75 and older who have owned a DC residence for at least 25 consecutive years and have limited investment income may qualify for an interest-free deferral.
Redemption After a Sale
After a lien is sold, you have six months to redeem the property by paying the full amount listed on the certificate of sale plus 18 percent annual interest from the sale date.16D.C. Law Library. District of Columbia Code 47-1306 – Real Property Tax Assignment; Sale and Transfers Once that window closes, the lien purchaser can move to foreclose on the right of redemption, which is when you genuinely risk losing your home. Acting before the July sale is always cheaper and less stressful than trying to redeem afterward.