District of Columbia’s Homestead Tax Deduction

Hello this is Deirdre Brown your settlement agent serving the District of Columbia, Maryland, and  Virginia.  Today we’re going to talk about the District of Columbia’s homestead tax deduction. 

This tax deduction in the District of Columbia is based on whether you live in your property as your principal residence. It is not based on income. In order to receive this homestead tax deduction you will need to complete and submit the application.  Its a very simple  one-page application. It is called the ASD 100.  You can obtain a copy of it from the office of tax and revenue’s website which is mytax.dc.gov and or from your title professional. 

For the 2020 Tax Year which runs from October 1, 2020 to September 31, 2021, the District of Columbia will deduct  $75,700 off the assessed value of your property before they calculate your real property taxes.  This is an average savings of $643.45 for the tax year.  

If you submit the application and it is approved between October 1st and March 31st you receive the tax deduction for the whole year. If you submit the application and it is approved between April 1st and September 30th you receive the tax deduction for half of the year.  

Let’s say you moved into your property you didn’t know about this tax deduction that’s fine you can apply it any time, however the deduction is not retroactive.  The deduction is only applied going forward. 

If you have more real estate tax related questions please feel free to reach out to us at lexicontitle.com