1. Learn about this resource. 

Homeowners can receive a flat $668.95 reduction on their property tax bill per year for living in their DC home (and not renting it out), some exceptions apply if property qualifies under short term business licensure rental. 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 2% 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.

  • To qualify in 2023, your household federal adjusted gross income—your income before paying taxes—in 2021 must have been less than $139,900. 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 for tax year 2021. The income threshold will be increased in January 2023 so if your income in 2021 was more than $139,900 you can check back in January 2023 to see if you qualify. 

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This page was last updated October 2022.

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