Changes to the DC Transfer and Recordation Tax

Thirty-five states plus District of Columbia impose a tax on the transfer of real property. In DC the recordation tax is the responsibility of the buyer and the transfer tax is the responsibility of the seller unless otherwise negotiated. The transfer and recordation taxes are based on the sales price of the property. Effective October 1, 2006 the transfer and recordation taxes for tranactions at $400,000 and above will increase from 1.1% to 1.45%. Transactions at $399,999 and below will continue to be 1.1% of the sales price.

Speaking of taxes, DC exempts the first $60,000 if you occupy the property as your primary residence and you file a homestead deduction application. Once the deduction has been in effect for a full tax year*, DC will not increase your taxable assessment by more than 10% per year. Visit the DC government website for more information.

*DC property tax year runs from October 1 through September 30 and taxes are due on twice a year (March 31st & September 15th)