The District of Columbia features a surprisingly low residential property tax rate, levying just $0.85 per $100 of assessed value. To further protect homeowners from exploding capital valuations, the District offers a massive $89,850 Homestead Deduction (for 2025) and enforces a strict 10% cap on annual taxable assessment growth (est., Tax Foundation 2026).
The District of Columbia operates as a single taxing jurisdiction. Instead of juggling overlapping school, city, and county levies like mainland states, D.C. residents pay a single, straightforward statutory rate directly to the District government.
100% Assessment and Class 1 Rates
The Office of Tax and Revenue (OTR) assesses real property annually at 100% of its estimated market value. All owner-occupied residential properties are categorized as “Class 1.”
The statutory tax rate for Class 1 properties is $0.85 per $100 of assessed value (or 0.85%). However, because of aggressive homestead deductions and assessment caps, the actual median effective rate paid by homeowners hovers closer to 0.60%.
D.C. average effective rate. On a $750,000 home, expect approximately $4,500 per year at the District average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $500,000 | $3,000 | $250 | -$1,500 below avg. |
| $750,000 | $4,500 | $375 | -$2,250 below avg. |
| $1,000,000 | $6,000 | $500 | -$3,000 below avg. |
| $1,500,000 | $9,000 | $750 | -$4,500 below avg. |
| $2,500,000 | $15,000 | $1,250 | -$7,500 below avg. |
Estimates use 0.60% District-wide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
The Homestead Deduction (Updated for 2025)
If the property is your principal residence and you are domiciled in D.C., you must apply for the Homestead Deduction. This is not automatic.
For Tax Year 2024, the deduction reduced your property’s assessed value by $87,050. For Tax Year 2025, the deduction has increased to $89,850. This deduction occurs before the $0.85 rate is applied, saving the average homeowner over $760 annually.
The 10% Assessment Cap
D.C. real estate values can skyrocket. To protect residents, properties receiving the Homestead Deduction are automatically enrolled in the Assessment Cap Credit program.
This program ensures that your taxable assessment cannot increase by more than 10% per year, regardless of how much the actual market value of the home increased. (Note: This cap does not apply to new construction, additions, or when the property changes ownership).
Senior Citizen & Disabled Property Tax Relief
The District offers one of the most generous senior relief programs in the nation. If you are 65 or older (or have a qualifying disability) and own your primary residence, you may qualify for the Senior Citizen/Disabled Property Tax Relief program.
If your household adjusted gross income is below the strict threshold ($154,750 for 2024), your property tax bill is reduced by exactly 50% (after the Homestead Deduction is applied).
2024-2025 Legislative Changes (The “Mansion Tax”)
In response to budget deficits, the D.C. Council passed a new tiered tax structure effective October 1, 2024, splitting the residential category into Class 1A and Class 1B:
- Class 1A: Properties valued at $2,500,000 or less remain taxed at the standard $0.85 per $100 rate.
- Class 1B: For properties valued over $2,500,000, the first $2.5M is taxed at $0.85, but any assessed value exceeding $2.5M is now taxed at $1.00 per $100.
Disclaimer and Methodology
This calculator provides estimates for planning purposes only. In the District of Columbia, property taxes are levied by a single jurisdiction. The calculator utilizes the statutory Class 1 rate to provide a baseline estimate, factoring in the Class 1B tiered hike for high-value properties.
What this calculator does not account for:
- The 10% Assessment Cap Credit. If you have lived in your home for years, your actual taxable value may be significantly lower than the current market value entered above.
- The 50% Senior/Disabled Tax Relief reduction.
- Commercial or vacant property rates, which are significantly higher (up to $5.00 per $100 for blighted property).
How to get an accurate estimate:
- Look up your home’s Capped Taxable Assessment on the D.C. OTR property search portal.
- Subtract the $89,850 Homestead Deduction.
- Multiply the remaining value by 0.0085 (or use the tiered calculation if over $2.5M).
Data sources: District-wide effective rate derived from the Tax Foundation and Census ACS. Statutory rates, 2025 exemption limits, and Class 1B tax tier updates from the D.C. Office of Tax and Revenue (OTR).
Return to the National Property Tax Calculator to compare Washington D.C. with the states.