What is the DC Homestead Deduction and why should you care if you’re a homeowner? It’s residential property tax relief, that’s why!
The DC Homestead Deduction is applicable to fee simple residences and condominium units. Cooperatives are also eligible, but the co-op takes the credit instead of the homeowner.
Homestead Deduction and Senior Citizen or Disabled Property Owner Tax Relief
The Homestead Deduction gives qualified residential property owners a reduction in assessed value by $72,450 (before computing the annual tax liability).
Do you qualify? Here are the basic rules:
- An application must be on file with the Office of Tax and Revenue;
- The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner);
- The property must be the principal residence of the owner/applicant.
If your application is approved and filed between October 1 to March 31, you’ll receive the Homestead Deduction for the entire tax year (and all tax years in the future during which you qualify). If your application is filed between April 1 to September 30, you’ll receive half of the benefit reflected on the second-half tax bill (and full deductions for all qualifying tax years in the future).
Learn more about the DC Homestead Deduction