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1. Learn about this resource. 

Homeowners can receive a flat $714 reduction on their property tax bill per year or $357 per half year for living in their DC home (and not renting it out), some exceptions apply if property qualifies under short term business licensure rental. Additionally, the property’s taxes are capped from increasing more than 10% each year. Adults 65 years or older and adults with disabilities receive a 50% reduction on their property taxes and their property taxes are capped at a 2% increase.

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The cap will only apply if the value from the previous year was above the cap threshold and will automatically be calculated on your tax bill. For properties recently purchased, you may enjoy the prior owners' cap in the half of the year that the property was purchased. Generally, after applying and receiving the deduction, you will have the cap credit available in the next real property tax year.

 

This program is called the Homestead Deduction and Assessment Cap and is offered by the Office of Tax and Revenue.

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2. Check if you are eligible.

You are eligible for the Homestead Deduction if all of these statements are true:

• You own the DC home that you live in.

• You do not own property elsewhere with a homestead exemption or a primary residential credit.

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You are eligible for the Senior or Disabled Homestead Deduction if all of these statements are true:

• You own the DC home that you live in.

• You are 65 or older or are an adult with a disability and receiving disability payments.

• You own 50% or more of your home.

• To qualify in 2023, your household federal adjusted gross income—your income before paying taxes—in 2021 must have been less than $149,400. Count anyone who lives in your house, except tenants under a written lease paying fair market rent, as part of your household. To calculate your income, look on your tax return you filed for tax year 2021.