Cooperative Homestead Deduction

The Cooperative Homestead deduction benefit program reduces the annual real property taxes for a residential cooperative. The amount deducted from the annual tax depends on the number of units occupied by eligible shareholders/members (dwellers) within a Cooperative building.

Every October a Homestead Reconfirmation package, which also includes the claim for Trash Credit, is mailed to all eligible DC Cooperative Management Companies or Representatives to update and confirm homestead information on file with the Office of Tax and Revenue (OTR). Homestead Reconfirmation packages are due back to OTR by mid-December* to generate an accurate first half tax bill for the Cooperatives. If the Reconfirmation is returned late, after March 31, the Cooperative is only eligible for half-year credit. Current and new homestead applicants are audited by OTR to confirm DC domicile and applicant occupancy of units. Cooperative Homestead Deduction can only be granted as current half tax year and forward, retroactive granting is not permitted. 

* The specific Homestead Reconfirmation due date is outlined in the Reconfirmation package.

Prior to the Homestead Reconfirmation package due date, OTR is committed to conduct an online annual information share seminar for the Cooperative Management companies or Representatives, generally it is scheduled during the second part of November. The seminar is designed to provide program updates and answer questions on the overall certification process.  

Cooperative Homestead Qualification Requirements:

• An individual shareholder/member should complete a homestead application and forward it to the Cooperative Management Company or Representative of the Cooperative.
• The applicant shareholder/member must be domiciled in the District of Columbia.
• The unit must be the applicant’s primary place of residence.
• Each applicant can qualify for the homestead on only one unit in the building, even if the applicant occupies an additional unit.
• Only one person in a household occupying a unit can qualify for the homestead.
• The applicant cannot own another property with a benefit comparable to homestead in any jurisdiction.

Benefit:

• The cooperative is billed instead of the individual shareholders (dwellers) with updated homestead information.

 

Cooperative Trash Credit
A trash credit deduction is allowed for cooperatives that pay for garbage collection instead of receiving city garbage service. The amount of the trash credit for the Cooperative is calculated based on the total number of units within the Cooperative and is divided between tax halves. The trash credit is $133.00* per unit for 2025. To qualify, the following circumstances must be met:

• The property must be either: 1) a single dwelling unit owned as a condominium; 2) a single dwelling unit that is owned by a member of a homeowner association; or 3) a cooperative dwelling unit.
• The dwelling unit must be in a condominium building or a cooperative housing association building with at least four dwelling units.
• The housing association, condominium, and cooperative housing association must not receive trash collection services from the District of Columbia.
• The unit must be occupied by the owner and used for non-transient residential purposes.

* The annual figure is subject to change annualy. 

The trash credit certification to OTR is part of the annual Homstead Reconfirmation package sent to the Cooperative Management Company or Representative. 

 

Cooperative Senior/Disabled Tax Relief
Cooperative shareholders/members who qualify for the homestead deduction may also qualify for the senior/disabled deduction, which can reduce the applicant’s share of the cooperative’s annual real property tax by 25% or 50%, depending on which half of the tax year the benefit is applied based on the move-in date and or the 65th birthday of the senior.

Every March a Senior/Disabled package is mailed to all eligible DC Cooperative Management Company or Representative to update OTR with shareholders information who are at least 65 years of age or disabled and therefroe, may qualify for the Senior Citizen/Disabled tax credit. If qualifications are met, the annual 25% or 50% tax credit is applied to the second half of the tax year and reflected on the tax bill accordingly. The credit is used by the Cooperative to grant refunds to eligible senior/disabled shareholders. The Senior/Disabled packages are due back to OTR by mid-June* to generate an accurate second half tax bill for the Cooperatives. If the package is returned late, after September 30, the Cooprative is no longer eligible for the credit for the tax year. Current and new Senior/Disabled recipients are audited by OTR for eligibility. Cooperative Senior/Disabled credit can only be granted for the current tax year, and it requires annual recertification to OTR by the Cooperative Managment or Representative. Retroactive Senior/Disabled tax credit granting is not permitted.      

*The specific Senior/Disabled package due date is outlined in the package. 

Prior to the Senior/Disabled package due date, OTR is committed to conduct an online annual information share seminar for the Cooperative Management companies or Representatives, generally it is scheduled during the second part of April. The seminar is designed to provide program updates and answer questions on the overall program administration process. 

Cooperative Senior/Disabled Qualification Requirements:

• The senior citizen/disabled applicant must apply for the benefit by completing the Senior Citizen or Disabled Shareholder Tax Relief Application.
• These packages are sent to the management company in March and due in June.
• The unit of the senior citizen/disabled applicant has qualified for the homestead deduction.
• The applicant must have at least 50% interest in the unit by reason of the applicant’s ownership of stock or other evidence of membership in the cooperative.
• To qualify for the senior/disabled tax relief in tax year 2025, the total household federal adjusted gross income for 2023 must be less than $159,750.00*.
• If an applicant is no longer filing tax returns, the applicant needs to complete the Statement of Income to verify income.
• To receive the senior citizen benefit, the applicant must be 65 or older.
• If the applicant turns 65 by March 31, then the applicant will receive the full 50% reduction.
• If the applicant turns 65 between (April 1–Sept 30, then the applicant will only receive a 25% reduction.
• To apply for the disabled benefit, the applicant must either provide a letter from the Social Security Administration stating that the applicant is permanently and total disabled or show that the applicant is receiving Federal or District disability benefits.

*The figure is subject to change annually. 

Benefits:

• The credit will be applied to the real property tax bill for the second half of the year.
• The credits are used by the Cooperatives to grant refunds to the eligible Senior/Disabled shareholders.
• The refunds are distributed by the management company and/or cooperative, not OTR.

For additional information, please refer to the FAQs.