1. Learn about this resource. 

Homeowners can receive a flat $648.97 reduction on their property tax bill per year for living in their DC home (and not renting it out). Additionally, the property’s taxes are capped from increasing more than 10% each year. Adults 65 years or older and adults with disabilities receive a 50% reduction on their property taxes and their property taxes are capped at a 5% increase.

 

This program is called the Homestead Deduction and Assessment Cap and is offered by the Office of Tax and Revenue.

2. Check if you are eligible.

You are eligible for the Homestead Deduction if all of these statements are true:

  • You own the DC home that you live in.

  • You do not own property elsewhere with a homestead exemption or a primary residential credit.

You are eligible for the Senior or Disabled Homestead Deduction if all of these statements are true:

  • You own the DC home that you live in.

  • You are 65 or older or are an adult with a disability and receiving disability payments.

  • You own 50% or more of your home.

  • Your household federal adjusted gross income—your income before paying taxes— was less than $135,750 in 2021. Count anyone who lives in your house, except tenants under a written lease paying fair market rent, as part of your household. To calculate your income, look on your tax return you filed last year. 

reduce your property taxes?

DO YOU WANT TO

3. Apply.


  1. Go to MyTax.dc.gov and click on "View More Options" under Real Property. Select "Submit a Homestead Deduction Application" and enter your address. Then follow the application questions. If you are a senior or an adult with a disability, you'll want to have handy a statement of income if you’re not filing District returns and proof of total or permanent disability with proof of disability payments (if applicable).
  2. If you are applying while you are buying your home, your title company can assist you with the application.
You can apply at any time.





4. Gather more information.

What happens after I apply?


  1. You’ll receive an email confirmation.
  2. Once approved, you will automatically receive the reduction for all future property tax bills. You’ll see the deduction right on your bill. We—the DC Government—will not send any additional communication.
If you are not approved, you receive an email with your application status and instructions on how to appeal the decision. You will receive written notice of confirmation or denial with the reason of the denial and your appeal rights.




Are there any additional requirements I should know about?


If your home is a part of a cooperative housing association (or co-op), the cooperative will give you the application materials, collect them, and submit your application on your behalf since property taxes are paid through the cooperative. If you have questions, reach out to your co-op board. If you are renting a portion of your house, you must have a general business license and must register with OTR by completing a New Business Registration form (FR500). You are eligible for this tax reduction if you live permanently (legally referred to as domiciled) in the District. That means that you need to:

  • List the DC address where you live on your application form
  • File all income tax returns using the same address
  • Have a District driver's license or identification card at this address
  • If you own a vehicle, register it in using this address
  • If you register to vote, do so using this address




Who should I contact if I have questions?


First, take a look at the frequently asked questions at the bottom of the page. If you still have questions, please reach out to the Office of Tax and Revenue Homestead Deduction team at (202) 727-4829, Monday to Friday, 8:15 am to 5:30 pm. Or, you can email our team at e-services.otr@dc.gov using the subject line “Homestead Deduction.”




I still need help paying my property taxes. What should I do?


You can find information about other resources that might help you save on taxes on our resource page.




Frequently Asked Questions


If I co-own my home with a spouse or relative, am I still eligible?

Yes, the deduction is not based on the number of owners or the number of people living in the home. As long as an owner lives in the home, you can receive the deduction.

I’m about to turn 65 years old. Do I get the Senior Homestead Deduction benefits automatically?

No. You must follow the instructions in the “How do I apply?” section to let DC Government know that you’ve turned 65 in order to receive the senior benefit.

Make sure children, grandchildren are not using your address on their District tax returns, as this will cause us to include their income in your household income and may disqualify you from the program when applying or when your household income is verified annually.

Can I rent out my property and still collect the Homestead Deduction?

No. The property must be your primary residence. You can only collect the Homestead Deduction at your home address. If you are renting a room be sure to keep appropriate records and have the required licenses to be in compliance with DC laws.




Do all eligible applicants receive the reduction?


Yes.





Keywords: homeowners, property tax reduction, primary residence, owner occupied, elderly, older adult, senior citizen, disability, deduct property taxes, reduce property taxes

 

This page was last updated July 2021.

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