DC First-Time Homebuyer Reduced Redecoration Tax – Update

Beginning on October 2nd,the Recorder of Deeds will begin accepting applications for this benefit. 

For deeds recorded on or after October 1, 2017, the recordation tax rate for a “first-time District homebuyer” purchasing “eligible property” will be reduced. For improved residential real property, the recordation tax rate is 0.725% (transfer taxes owed by the seller of 1.1% or 1.45% are unchanged).

For transfers of economic interests in a cooperative housing unit, the recordation tax rate is reduced from 2.2% to 1.825% for units under $400,000, and from 2.9% to 2.175% for units $400,000 or greater (there is no transfer tax).

An application for the reduced rate must be made at the time the deed is offered for recordation. The reduced rate cannot be applied for after the deed is recorded. Only one application form is required per deed. The applicant must use the version of this application form (Form ROD 11) available on the Recorder of Deeds website at the time the deed of title or economic interest transfer is submitted to the Recorder of Deeds. Prior versions of the form will not be accepted. For information concerning eligibility, please refer to OTR Tax Notice 2017-4.

View the application here.