A new analysis from the city’s Office of Revenue Analysis reveals that DC residents who own homes east of the Anacostia River pay the lowest effective property taxes in the city.
Before we delve into the findings, here is a quick primer on ways that DC homeowners see their tax burden go down.
DC’s Homestead Exemption deducts $70,400 from your property’s assessed value when calculating the amount of tax you must pay. Also, the city has an assessment cap that means a property can not be taxed on more than a 10 percent increase in its assessed value each year. Homes in neighborhoods where property values are rapidly rising benefit the most from the latter.
With those two provisions in mind, the latest post on District Measured states that the neighborhoods with the greatest difference between taxable assessments and market assessments are east of the Anacostia River and in areas where property values are growing rapidly:
In the Congress Heights neighborhood, for example, the taxable assessments are only 56 percent of the market assessments. In neighborhoods where values are growing fast, such as Eckington and Riggs Park, the taxable assessments are at about 67 to 68 percent of market assessments. In the northwest quadrant, especially west of Rock Creek Park, taxable assessments are closest to market assessments. This is because the housing values in these neighborhoods are very high, and they grow at much slower rates.
The map above outlines taxable assessments versus market assessments on a neighborhood-by-neighborhood basis.
This article originally published at http://dc.urbanturf.com/articles/blog/dcs_lowest_effective_property_taxes_are_east_of_the_river/9638
Most Popular... This Week • Last 30 Days • Ever
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The project would replace a concrete plant and would deliver the neighborhood's first... read »
Loan recasting is a growing practice- so what is it?... read »
The 25-acre array will produce a quarter of the university's current annual energy co... read »
This year will likely go down as the year that prices for houses in DC reached new he... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The 12,000 square foot replica of 1600 Pennsylvania Avenue went under contract last w... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro