District to Mail First Half Real Property Tax Bills

Homestead Deduction - This deduction reduces the assessed value of real property by $60,000 prior to computing the yearly tax liability. To be eligible for the homestead exemption, a property owner must file an application and must be domiciled in the District, and the property must be the owner’s principal place of residence.

Tax Cap - This credit is provided to owner-occupants of residential real property. It ensures that a tax bill will not increase by more than 10 percent above the prior year’s bill, except in limited circumstances.

Senior Citizen Real Property Tax Relief - This program reduces a real property owner’s property tax by 50 percent. To be eligible, a property owner must be 65 years of age or older and own and occupy the property. All persons living in the property, excluding tenants, must have a total adjusted gross income of less than $100,000 for the previous calendar year, and the eligible property owner or any other senior owner-occupant must own 50 percent or more of the property.

Lower Income Home Ownership Tax Abatement - To be eligible for this benefit, which grants a five-year tax abatement and exemption from recordation and transfer taxes, a property owner must occupy the property, meet certain income requirements, and submit a Lower Income Home Ownership Tax Abatement application. The eligible property owner must be a first time homebuyer in the District, and the home must not be worth more than $264,000. The owner must also file an exemption from recordation and transfer tax at the time the deed is recorded.