Washington, D.C. property tax is assessed annually by the Office of Tax and Revenue at 100% of market value, and your bill is that value divided by 100 and multiplied by the rate for your property’s class. Residential owner-occupants pay $0.85 per $100 of assessed value; most commercial property pays $1.65 or more; vacant and blighted buildings pay punitive rates of $5.00 and $10.00. Bills come in two installments due March 31 and September 15, and several relief programs can cut what you owe if you apply.
The Five Property Classes
Starting with tax year 2025, the District restructured its property classes under D.C. Code § 47-813.1D.C. Law Library. District of Columbia Code 47-813 – Classes of Property Which class your property falls into drives everything else.
- Class 1A covers residential property used for nontransient dwelling, including multifamily buildings of any size. Most houses, condos, and apartment buildings sit here.
- Class 1B is narrower: improved residential property with no more than two dwelling units, such as a rowhouse, a semi-detached home, or up to two contiguous condos under common ownership. Class 1B properties face a higher rate on value above a set threshold.
- Class 2 is the catch-all for commercial, retail, industrial, and hotel property.
- Class 3 is vacant property that appears on the Department of Buildings’ vacancy list.
- Class 4 is blighted property that the Department of Buildings has determined is unsafe or a public nuisance.
The Department of Buildings, not the Office of Tax and Revenue, decides whether a property is vacant or blighted. If your property has been placed in Class 3 or 4 and you disagree, that dispute goes to DOB.2Office of Tax and Revenue. Real Property Tax Rates
Current Tax Rates
The D.C. Council sets rates annually under D.C. Code § 47-812, expressed per $100 of assessed value.3D.C. Law Library. District of Columbia Code 47-812 – Establishment of Rates
- Class 1A: $0.85 per $100.
- Class 1B: $0.85 per $100 on the first $2.558 million of assessed value, $1.00 per $100 above that.
- Class 2: $1.65 per $100 for property assessed at $5 million or less; $1.77 between $5 million and $10 million; $1.89 above $10 million.
- Class 3 (vacant): $5.00 per $100.
- Class 4 (blighted): $10.00 per $100.2Office of Tax and Revenue. Real Property Tax Rates
The vacant and blighted rates are intentionally steep. A blighted property assessed at $400,000 owes $40,000 a year in tax; the same assessed value on a Class 1A home owes $3,400.
How Your Bill Is Calculated
All real property in the District is assessed at 100% of estimated market value, based on recent sales of comparable properties and local market conditions.4Office of the Chief Financial Officer. Tax Rates and Revenues, Property Taxes OTR sends assessment notices early in the year.
The arithmetic is simple: divide assessed value by 100, multiply by the class rate. A Class 1A home assessed at $500,000 owes ($500,000 ÷ 100) × $0.85 = $4,250 before any relief. A Class 2 commercial building assessed at $3 million owes ($3,000,000 ÷ 100) × $1.65 = $49,500.
Market swings carry into your bill. If comparable homes in your neighborhood sold higher this year, your assessment rises even if you did nothing to the property. That is where the homestead programs come in.
Relief Programs That Lower Your Bill
The District offers several reductions, but you have to apply. OTR will not add them on its own.
Homestead Deduction
The homestead deduction reduces your taxable value by a fixed amount before the rate is applied. For tax year 2026, the deduction is $89,850.5Office of Tax and Revenue. Notice of Oct. 1, 2025 Tax Changes The base figure of $67,500 under D.C. Code § 47-850 rises each year with a cost-of-living adjustment.6D.C. Law Library. District of Columbia Code 47-850 – Residential Property Tax Relief, Homestead Deduction for Houses and Condominium Units
On a $500,000 Class 1A home, the taxable value drops to $410,150 and the Class 1A rate is applied to that figure, saving roughly $764 a year. The property must be your principal residence. You apply by filing Form FP-100 with OTR, providing your Social Security number and confirming you don’t claim a similar benefit elsewhere. Once approved, the deduction renews automatically unless your residency changes.
Assessment Cap
For approved homestead properties, the taxable assessment cannot rise more than 10% in a single year.7Office of Tax and Revenue. Real Property Tax Reliefs, Credits, and Deductions If market value jumps 25%, the cap holds the taxable value to 10% above last year’s. The cap doesn’t appear as a lower assessed value on your notice; it shows as a separate credit on the bill. In an appreciating neighborhood, the gap between assessed value and capped taxable value can grow large over several years. The cap applies automatically once your homestead is approved.
Senior and Disabled Owner Relief
Owners who are at least 65 or who have a qualifying permanent disability can receive a 50% reduction in property tax liability under D.C. Code § 47-863.8D.C. Law Library. District of Columbia Code 47-863 – Reduced Tax Liability for Property Owners Over Age 65 and for Property Owners With Disabilities You must hold at least a 50% ownership interest, and total household adjusted gross income must be under $163,500 for 2026.7Office of Tax and Revenue. Real Property Tax Reliefs, Credits, and Deductions That income cap rises annually with a cost-of-living adjustment.
Qualifying disabilities include SSI, Social Security Disability, railroad retirement disability, and federal or D.C. government disability payments. The 50% reduction is calculated by applying the rate to half of your taxable assessment and splitting that across the two installments. You apply using Form FP-100, the same form as the homestead deduction.
Payment Deadlines
DC bills property taxes in two installments. The first covers October through March and is due March 31. The second covers April through September and is due September 15.9Office of Tax and Revenue. Real Property Tax Bill Due Dates and Delayed Tax Bills If a deadline lands on a weekend, confirm the adjusted date with OTR.
A missed deadline brings a 10% penalty on the unpaid amount plus interest of 1.5% per month for each full or partial month the balance is outstanding.10Office of Tax and Revenue. Real Property and BID Tax Payments, and Electronic Bill Notification On a $4,000 installment, that’s $400 the first day late and $60 more every month after. The compounding is what pushes delinquent accounts toward the annual lien sale.
You can pay through the MyTax.DC.gov portal or by mailing a check with the bill coupon. If your mortgage lender handles escrow, the lender pays, but you remain legally responsible if the payment is late or short. Check your account after each due date to confirm it posted.
Appealing an Assessment You Think Is Too High
If OTR’s valuation looks wrong, you can challenge it. There are two stages: an administrative review by OTR, and if you’re still not satisfied, a formal appeal to the Real Property Tax Appeals Commission.
The administrative review is quicker. You submit evidence that comparable properties sold for less than your assessed value, or that your property has conditions the assessor didn’t account for. If OTR agrees and adjusts the value, you’re done. If not, you have 45 days from the administrative decision to appeal to RPTAC.11Office of Tax and Revenue. Real Property Assessment Appeal Rights and Application
At RPTAC, the burden is on you to show the assessment is wrong, not just that you disagree.12Real Property Tax Appeals Commission. RPTAC Frequently Asked Questions The strongest evidence is recent sales of similar nearby properties that closed below your assessed value. A professional appraisal helps but isn’t required. RPTAC publishes separate forms for homestead and non-homestead properties along with a Schedule A property information sheet.13Real Property Tax Appeals Commission. RPTAC Appeal Forms The 45-day window is a hard deadline; late filings are rejected regardless of how strong the case is.
What Happens if You Don’t Pay
Every year, usually in July, the District holds a tax lien sale for delinquent accounts. For improved property the threshold is $2,500 in outstanding tax; for vacant land it’s $200.14Office of Tax and Revenue. District of Columbia 2025 Real Property Tax Sale The District doesn’t sell your home at the auction; it sells the right to collect your debt. The winning bidder pays the balance plus a $200 fee. If you don’t repay the buyer with 1.5% monthly interest, that buyer can eventually sue to foreclose.
You can pull the property off the sale list by paying the balance below $2,500 before the auction. If you have an approved homestead and owe between $2,500 and $7,500, you may qualify for forbearance by applying at least 30 days before the sale. Owners above $7,500 or past the 30-day window can still request forbearance, but approval is discretionary.
Homeowners 65 or older with adjusted gross income under $50,000 may qualify for the Low Income Senior Tax Deferral, which postpones payment rather than losing the property. Deferred taxes accrue 6% interest, though some owners 75 or older may qualify for an interest-free deferral.15Office of Tax and Revenue. Real Property Tax Lien Sale and Resources The deferred balance comes due when the property is sold or transferred.