Washington DC Property Tax 2026: Class 1 Rates, Annual Reassessment & the Homestead Deduction

How Washington DC Property Tax Works in 2026

Washington, DC is not a state — it is a single citywide jurisdiction with no counties, so property tax administration, assessment, and collection are all handled by one agency: the DC Office of Tax and Revenue (OTR), part of the Office of the Chief Financial Officer, rather than a state Department of Revenue. The District's average effective property tax rate is approximately 0.60% of home value according to the Tax Foundation, among the lowest effective rates of any state or state-equivalent jurisdiction in the country.

DC assesses real property at 100% of estimated market value and, unusually among large jurisdictions, reassesses every property annually rather than on a multi-year cycle. The Class 1A Residential rate is $0.85 per $100 of assessed value. DC offsets its annual reassessment cycle with a generous Homestead Deduction of $91,950 for tax year 2026 and a 10% cap on how much a homestead-eligible property's taxable assessment can rise in a single year, plus a substantial 50% tax reduction for qualifying seniors and disabled residents. This guide covers DC's annual reassessment and Class 1 rate structure, the Homestead Deduction and 10% assessment cap, the Senior/Disabled 50% tax reduction, and a worked example for a $600,000 DC home.

DC Is Not a State: How Property Tax Administration Differs

Washington, DC is a federal district, not a state, and it has no counties — the entire jurisdiction is divided into eight political Wards for representation purposes, but property tax assessment and collection are handled centrally by one citywide agency: the DC Office of Tax and Revenue (OTR), operating under the Office of the Chief Financial Officer. This means there is no county assessor, no county-by-county rate variation, and no separate state-level oversight body layered on top — OTR performs the functions that, in a state, would typically be split between a state Department of Revenue and dozens of individual county assessors. Any comparison of DC to "other states" for property tax purposes should account for this structural difference: DC's single citywide rate and assessment practice make it more directly comparable to a single large county than to an entire state with internal rate variation.

100% Assessment at Market Value, Reassessed Annually

DC assesses real property at 100% of its estimated market value — unlike states that use a fractional assessment ratio (such as Missouri's 19% or Oklahoma's 11%–13.5%), DC's assessed value is intended to directly reflect what OTR estimates the property could sell for. Just as unusually, OTR reassesses every property in the District annually, rather than on the 2–6 year cycles common in most states. This keeps assessed values closely tracking market movements year to year, which is part of why the Homestead Deduction and 10% assessment cap (described below) play such an important role in keeping bills predictable for owner-occupants.

Tax Rate by Property Class

DC's real property tax rates are set by classification. The rates most relevant to homeowners are:

• Class 1A (owner-occupied residential): $0.85 per $100 of assessed value
• Class 1B (residential, 1–2 units, non-homestead): $0.85 per $100 up to $2,558,000 in assessed value, then $1.00 per $100 on the portion above that amount

Example: Converting Market Value to a Base Tax Amount

A home assessed at $600,000, before any deductions, at the Class 1A rate: $600,000 ÷ $100 × $0.85 = $5,100 per year before the Homestead Deduction is applied.

The Homestead Deduction and 10% Assessment Cap

DC's two central relief mechanisms for owner-occupants work together to offset the effect of annual, market-value reassessment.

Homestead Deduction

Owner-occupants of their principal DC residence can claim a Homestead Deduction of $91,950 off assessed value for tax year 2026, which reduces the base tax by approximately $781.58 per year at the Class 1A rate ($91,950 ÷ $100 × $0.85). Unlike some states' homestead exemptions, DC's is applied as a straight reduction in assessed value before the rate is applied, and it must be actively filed with OTR (it is not automatic upon purchase).

10% Assessment Cap

For properties that already have the Homestead Deduction in place, DC also caps how much the taxable assessed value can increase in a single year at 10%, even if the property's appraised market value rises by more. This is similar in purpose to Oklahoma's 3% fair cash value cap or Oregon's Measure 50 cap, though DC's cap percentage is considerably higher — reflecting DC's much higher baseline home values and its policy choice to still let taxable value grow relatively quickly compared to those other states' caps.

Applying Both Together

A homeowner with the Homestead Deduction in place benefits from both: the flat $91,950 deduction reduces the taxable base every year, while the 10% cap limits how fast that already-reduced base can grow, even during periods of rapid appreciation in DC's housing market.

Senior and Disabled Property Tax Relief

DC Code § 47-863 provides a substantial 50% reduction in the property tax otherwise owed for homeowners who are age 65 or older, or who are permanently and totally disabled, provided the household's federal adjusted gross income does not exceed $163,500 for tax year 2026. This 50% reduction is calculated after the Homestead Deduction and assessment cap are already applied, so it stacks on top of — rather than replaces — those other benefits.

Low-Income Senior Deferral

Separately, DC also offers a property tax deferral option for lower-income seniors with household AGI under approximately $50,000, allowing eligible homeowners to defer payment of some or all of their property tax, with the deferred amount becoming a lien against the property to be settled upon sale or transfer, rather than paid annually out of current income.

Combined Effect for a Qualifying Senior

A senior homeowner who qualifies for both the Homestead Deduction and the 50% Senior/Disabled reduction sees their bill calculated on the already-reduced (deduction and cap applied) assessed value, then cut in half again — a combination that can reduce an otherwise-typical DC bill very substantially for lower- and middle-income senior homeowners.

Worked Example: $600,000 Home in Washington, DC

This example walks through DC's assessment chain using the citywide Class 1A rate and current relief programs (DC has no counties, so there is no county-by-county variation to compare, unlike the other guides in this series).

Step 1: Assess at 100% of Market Value

Under DC's 100%-of-market-value standard, a home OTR estimates to be worth $600,000 is assessed at the full $600,000.

Step 2: Apply the Homestead Deduction

$600,000 assessed value − $91,950 Homestead Deduction = $508,050 taxable assessed value.

Step 3: Apply the Class 1A Rate

$508,050 ÷ $100 × $0.85 = $4,318.43 per year (before any senior/disabled reduction).

Step 4: Compare to the No-Deduction Baseline

Without the Homestead Deduction, the same home would owe $600,000 ÷ $100 × $0.85 = $5,100/year — the Homestead Deduction alone saves this homeowner approximately $781.58 per year.

Step 5: Apply Senior/Disabled Relief, If Eligible

A qualifying senior or disabled homeowner (household AGI under $163,500) would have this $4,318.43 amount cut in half by the 50% reduction under DC Code § 47-863, bringing the bill to approximately $2,159.22 per year — less than half of the no-deduction baseline.