First-Timer Primer: Tax Relief for DC Homeowners
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When you buy a home in the District, you will have to pay property taxes along with your mortgage and homeowner’s insurance. As housing values shoot up, property taxes may rise just as quickly, creating a greater monetary outlay than what new homeowners initially planned for. Luckily, DC has a few ways to lower the tax burden.
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All Owner-Occupants are Eligible for the Homestead Deduction
Homeowners in DC can file an application with the Office of Tax and Revenue for a Homestead Deduction. The primary benefit of the deduction is to bring down the taxable value of your home. According to DC’s Office of Tax and Revenue, the deduction reduces your property’s assessed value by $87,050. To be eligible for the Homestead Deduction, the property must be your principal residence and have no more than five units if it is a multi-family property.
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If you can file before tax season (by March 31st), the Homestead Deduction will apply for the entire year and all subsequent years. If you file between April 1st and September 30th, the property will only receive one half of the deduction for that year, and the full deduction for all subsequent years.
Tax Relief Available to Senior Citizens
Once a DC resident reaches the age of 65, they can file an application for senior citizen property tax relief. If the adjusted gross income of the household is less than $154,750, they will be eligible for significant tax relief. Specifically, the property tax owed will be reduced by 50 percent.
See other articles related to: first-time buyers, first-timer primer, homestead deduction, property taxes
This article originally published at https://dc.urbanturf.com/articles/blog/first_timer_primer_tax_relief_programs_for_dc_homeowners/6676.
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