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, and then multiplying that amount by the applicable tax rate for the property, as stated in the below chart.
For example, your residential property is under the Class 1A tax rate, which is $0.85. If your property is assessed at $500,000, divide $500,000 by 100; that amount is $5,000. Then multiply $0.85 by $5,000. Your annual tax is $4,250 (before the homestead deduction, senior citizen tax relief, and/or trash credits).
If your commercial property is classified as Class 2, and your property is assessed at a total value of $5,000,000 or less, your tax rate is $1.65. If your property’s assessed value is exactly $5,000,000, divide that value by 100; the amount is $50,000. That amount multiplied by $1.65 is your annual tax of $82,500.
However, if your Class 2 property is assessed at, for example, $5,500,000, your tax is computed using the $1.77 tax rate. Divide $5,500,000 by 100. That amount is $55,000. Multiply $1.77 by $55,000. That product is $97,350, which is the annual tax on the property’s $5,500,000 assessment.
Other rates as stated below apply to commercial Class 2 properties valued at more than $10,000,000, vacant properties and blighted properties.
Current Classes and Rates
The classification of Class 3 and 4 properties is the sole responsibility of the Department of Building (DOB). Therefore, questions regarding a property's classification impacted by Class 3 or 4 should be directed to DOB by calling (202) 671-3500, tools and live chat feature also available on the DC Department of Buildings website, or via email [email protected] .
Real Property Tax Rates
Class 1A – Residential real property, including multifamily: $0.85 per $100 of assessed value.
Class 1B – Residential real property with no more than two dwelling units:
- The first $2.5 million of assessed value is taxed at $0.85 per $100.
- Any amount above $2.5 million is taxed at $1.00 per $100.
Class 2 – Commercial and industrial real property, including hotels and motels:
- $1.65 per $100 if assessed value is not greater than $5 million.
- $1.77 per $100 if assessed value is greater than $5 million but not greater than $10 million.
- $1.89 per $100 if assessed value is greater than $10 million.
Class 3 – Vacant real property: $5.00 per $100.
Class 4 – Blighted real property: $10.00 per $100.