DC Homestead Deduction - Another DC homebuyer perk!
Buyers in DC may not be aware that the DC Homestead Deduction reduces real property assessed value by $67,500. That’s quite a savings!
It’s limited to residential property only and you’ll need to file an application (your settlement agent can submit this for you).
You need to be an owner occupant and the home has to be your principal residence. Pretty simple!
If you file between October 1st and March 31st, you’lll receive the deduction for the entire tax year (and all years in the future for which you qualify). Woot! More reasons (besides the low looooow interest rates right now AND the first time homeowner $5000. tax credit for DC home buyers) to buy a home before the end of the year!
If you file from April 1 to September 30, the property will receive half of the benefit reflected on the second-half tax bill (and full deductions for all tax years in the future).