1. Learn about this resource.
Homeowners can get up to five years of tax abatement for their property taxes, meaning they do not have to pay property taxes on their home for up to five years. This benefit starts on October 1st of the year that you apply for the program. With this program, you also do not have to pay the recordation, meaning you would not have to pay to transfer deed information. These taxes and fees are waived and not owed later.
This program is called the Low Income Home Ownership Tax Abatement Program and is offered by the Office of Tax and Revenue.
2. Check if you are eligible.
You are eligible if all of these statements are true:
You own the home that you live in (or you will own the home that you will live in).
Your home (or soon-to-be home) is in DC.
You bought (or are buying) a home for less than $484,000 as of October 2020.
Your household income does not exceed the limits based on your household size and the home’s location.
reduce the taxes you owe when you buy a home?
DO YOU WANT TO
If you are in the process of buying a home, your title company will prepare documents and complete the application for you. You will sign the application during the closing process.
Your title company will submit the application when they are filing the deed record with the Office of Tax and Revenue.
4. Gather more information.
What happens after I apply?
We—the DC Government— will send you a letter confirming that you are approved.
We will record that no taxes (recordation and possibly transfer tax) were collected by the District and a note on your account that you do not have to pay property taxes for the next five years.
Either your title company or the Office of Tax and Revenue will issue you a refund for any taxes paid.
Are there any additional requirements I should know about?
Who should I contact if I have questions?
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
Do all eligible applicants get the tax abatement?
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Keywords: reduce property taxes, closing cost assistance, homebuying assistance, homebuyer, homeowner, income limits
This page was last updated May 2021.