Real Property Tax Rates Real property is taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. A tax rate is the amount of tax on each $100 of the assessed value of the property. The rates are established by the Council of the District of Columbia and may change from year to year. How the Real Property Tax Is Computed The amount of tax due is determined by dividing the assessed value of the property by $100, then multiplying that amount by the rate for the class associated with the property. For example, assume your property is classified as Class 1, which means your tax rate is $0.85, and your house is assessed at $100,000. To determine the tax, divide $100,000 by 100. That amount is $1,000. Then multiply $0.85 by $1,000. Your annual tax is $850 (before the homestead deduction, senior citizen deduction, and/or trash credits). Current Classes and Rates The following rates are effective October 1, 2007. For more information about the Class 3 tax rate, visit Vacant Real Property. Class Tax Rate per $100 Description 1 $0.85 Residential real property, including multifamily 2 $1.85 Commercial and industrial real property, including hotels and motels 3 $5.00 Vacant real property