DC’s real property tax is billed twice a year against your parcel’s assessed market value, at a rate that depends on how the property is classified. Owner-occupied homes pay $0.85 per $100 of assessed value; commercial property pays more; vacant and blighted buildings pay far more. The Office of Tax and Revenue (OTR) mails an assessment every year, applies the class rate, subtracts any relief you qualify for, and splits the result into two installments due March 31 and September 15.
Property Tax Rates by Class
Every taxable parcel falls into one of five classes, and the DC Council sets the rate for each class annually.1D.C. Law Library. District of Columbia Code 47-812 – Establishment of Rates
- Class 1A, owner-occupied residential. Homes where the owner lives on the property, with no more than five dwelling units, or a single condo unit. Rate: $0.85 per $100 of assessed value.
- Class 1B, higher-value owner-occupied. Starting with tax year 2025, owner-occupied property is split. Class 1B pays $0.85 per $100 on the first $2,500,000 of assessed value and $1.00 per $100 above that threshold; the threshold adjusts annually for cost of living beginning in tax year 2026.1D.C. Law Library. District of Columbia Code 47-812 – Establishment of Rates
- Class 2, commercial and industrial. Includes hotels, motels, and any real property that doesn’t fit another class. The rate is tiered: $1.65 per $100 up to $5 million, $1.77 per $100 between $5 million and $10 million, and $1.89 per $100 above $10 million.2DC Office of Tax and Revenue. Real Property Tax Rates
- Class 3, vacant. Improved property on the District’s vacant building registry pays $5.00 per $100. The rate is set high to push owners back into productive use.2DC Office of Tax and Revenue. Real Property Tax Rates
- Class 4, blighted. Properties on the blighted buildings list pay $10.00 per $100, the highest rate in the District. Blight designations typically follow findings that a building is unsafe, unsanitary, or in severe disrepair.1D.C. Law Library. District of Columbia Code 47-812 – Establishment of Rates
Parcels inside a Business Improvement District also carry a BID surcharge that funds services like cleaning, security, and marketing for the commercial area. The rate varies by district, so check your bill for the specific amount.3Department of Small and Local Business Development. Business Improvement Districts
How Your Bill Is Calculated
OTR reassesses every property each year, estimating full market value from comparable sales, property condition, and neighborhood trends.4D.C. Law Library. District of Columbia Code 47-820 – Assessments – Estimated Assessment Roll; Frequency of Assessments You receive an assessment notice showing the proposed value for the upcoming fiscal year. Review it against what you think your property would actually sell for. OTR then multiplies the assessed value by your class rate, applies any deductions or credits, and produces the bill.
The 10 Percent Assessment Cap
If you’re enrolled in the homestead program, your taxable assessed value can’t rise by more than 10 percent in a single year, no matter how much market value jumped. For seniors and people with disabilities on the special homestead deduction, the cap is 2 percent.5Office of Revenue Analysis. Evaluating DC’s Largest Housing-Related Tax Incentives Part 2 – Property Tax Assessment Increase Cap The cap has a floor: OTR will not let the taxable assessment fall below 40 percent of full assessed value. Enrollment is automatic once you’re approved for the homestead deduction.
Relief That Lowers Your Bill
Homestead Deduction
The homestead deduction subtracts a flat amount from your assessed value before the rate is applied. For tax year 2026, that’s $91,950, worth $781.58 in tax savings at the Class 1 rate.6DC Office of Tax and Revenue. Real Property Tax Reliefs, Credits, and Deductions The deduction adjusts annually for cost of living.7D.C. Law Library. District of Columbia Code 47-850 – Residential Property Tax Relief – Homestead Deduction for Houses and Condominium Units
To qualify, the property must be your principal residence with no more than five dwelling units, or a single condo unit. You need a valid Social Security number and can’t claim a similar benefit elsewhere. You only apply once, provided your eligibility doesn’t change. And approval turns on the 10 percent cap described above, which for many long-tenure owners is worth more over time than the deduction itself.
Senior and Disabled Owner Relief
Homeowners who are 65 or older or who have a permanent disability can cut their property tax liability in half. The deduction reduces the taxable assessment by 50 percent before the rate is applied.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
You must own at least 50 percent of the property, and total household adjusted gross income must fall below $163,500 for tax year 2026.6DC Office of Tax and Revenue. Real Property Tax Reliefs, Credits, and Deductions The threshold started at $125,000 and adjusts annually for cost of living.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 Disability claims require documentation from the Social Security Administration, a railroad retirement board, or a federal or DC agency showing a permanent and total disability. Bring proof of age or disability and income records for everyone in the household when you apply.
Schedule H Property Tax Credit
Schedule H is an income-tax credit for lower-income residents whose property taxes (or rent, treated as 20 percent property tax) eat too much of their income. The credit covers the amount above a set percentage of federal adjusted gross income, up to $1,425.9Office of the Chief Financial Officer. 2025 Schedule H
Household federal AGI must be at or below $68,000 if you’re under 70, or $90,000 if you’re 70 or older. You can’t claim the credit if you live in property owned by a government agency, a house of worship, or a nonprofit. File Schedule H with your DC income tax return.
When Payments Are Due
DC bills the annual tax in two installments. The first half covers October 1 through March 31 and is due March 31. The second half covers April 1 through September 30 and is due September 15.10DC Office of Tax and Revenue. Real Property Tax Bill Due Dates and Delayed Tax Bills Not receiving a bill in the mail is not a defense against a late payment. If nothing arrives, look up your account on MyTax.DC.gov using your Square, Suffix, and Lot (SSL) number, the unique identifier for every DC parcel.
Online payment through MyTax.DC.gov is the fastest option: electronic check with no fee, or credit card with a third-party surcharge. You can also mail a check or money order to the lockbox address on the bill (include the payment voucher), or pay in person at authorized financial institutions. Keep the receipt or confirmation number.
What Happens If You Pay Late
A missed deadline triggers a 10 percent penalty on the unpaid amount plus interest at 1.5 percent per month (18 percent per year) on the outstanding balance. Both start immediately. Once delinquent taxes exceed $2,500, the property becomes eligible for the District’s annual tax sale, typically held in July.11Office of the Chief Financial Officer. 2025 Real Property Tax Sale Informational Guide
The tax sale auctions a lien, not the property. The purchaser holds a legal claim, and you have six months to redeem by paying the full delinquent amount plus 18 percent annual interest.12D.C. Law Library. District of Columbia Code 47-1306 – Real Property Tax Assignment; Sale and Transfers If you don’t redeem in that window, the purchaser can file to foreclose. You can still redeem after the suit is filed, up until a court enters final judgment, but legal fees mount quickly at that stage.
Challenging Your Assessment
If OTR’s number looks too high, you have two levels of appeal. File the first-level administrative review with OTR before April 1 of the assessment year.13Real Property Tax Appeals Commission. Filing Deadline Dates The strongest appeals include recent sales of comparable nearby properties, an independent appraisal, or photographs showing damage or deterioration the assessor didn’t see. OTR reviews the file, sometimes schedules a hearing, and mails a written decision.
If that decision doesn’t resolve things, you have 45 calendar days from its date to file a second-level appeal with the Real Property Tax Appeals Commission.13Real Property Tax Appeals Commission. Filing Deadline Dates The 45-day clock is strict. RPTAC reviews independently and can adjust, keep, or increase the assessment. Buyers who take title between January 1 and March 1 can still petition OTR for administrative review before the April 1 deadline.
Supplemental Assessments After Improvements
If you build a new structure, add a major addition, or significantly renovate, OTR can issue a supplemental assessment on a biannual cycle. Improvements finished between January 1 and June 30 take effect October 1, with payment due March 31. Improvements finished between July 1 and December 31 take effect April 1, with payment due September 15.14D.C. Law Library. District of Columbia Code 47-829 – Taxable Real Estate; New Structures and Additions or Improvements of Old Structures; Complaints and Appeals You can appeal a supplemental assessment through RPTAC, particularly if OTR failed to send the required notice on time.15Real Property Tax Appeals Commission. Types of Filings Renovations that add real value can produce a surprisingly large supplemental bill, so build the tax increase into your project budget before construction starts.