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DC Sweetens the Pot for Owner Occupants

The DC Office of Tax and Revenue increased the Homestead Deduction benefit from $67,500 to $69,100. This benefit is applied as a reduction to a property’s assessed value for the purpose of computing the annual tax liability.

If you are an owner-occupant in a DC property, you qualify for this benefit.  The new increased benefit will reduce the annual property tax bill by $587.35.

To Qualify:

  • An application MUST be on file with the Office of Tax and Revenue (one-time application);
  • The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner); and
  • The property must be the principal residence of the owner/applicant.

How to Apply:

Typically you apply at settlement. However, check your recent tax bill (about half-way down page) to see if it says you are receiving the Homestead Deduction. Once you apply for the first time, you don’t need to apply again.

If you are an owner occupant in DC and are not receiving this great benefit, get your application here: http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/fp-100–homestead_reconfirmation_073112.pdf