DC First-Time Homebuyer Reduced Recordation Tax Rate

At a glance

Amount

Buyer's recordation tax cut to 0.725% from 1.1% or 1.45% on homes up to $777,000; saves up to about $5,600

Type of help

Tax relief

Where

Washington, DC

Run by

DC Office of Tax and Revenue (OTR), Recorder of Deeds

First-time buyer

First-time buyers only

Income limit

Yes, see below

Price limit

Yes, see below

Homebuyer education

Not required

How the tax relief works

Lower or waived recordation, transfer, or property taxes.

• Monthly payment: None
• When you would repay: Nothing to repay. It is a one-time reduction in the tax charged when your deed is recorded.

Who qualifies

• First-time buyers only. DC's definition is stricter than most programs. You must never have owned a house, condo, or co-op interest in the District that received the homestead deduction as your principal residence. There is no three-year lookback. Owning a home outside DC does not count against you. A prior DC home owned jointly with an ex-spouse and given up under a court order or separation agreement is excused.
• Income. OTR publishes a household income table on Form ROD 11, based on the federal adjusted gross income of every buyer and every adult who will live in the home, from the most recent tax return. The FY2026 form (effective 2025-10-01) raised the limits above the FY2025 table, which ran from $194,940 for 1 person to $367,740 for 8. Your title company reads your household against the current form.
• Price. Purchase price up to $777,000 for tax year 2026 (OTR notice of October 1, 2025 changes, raised from $753,000). OTR adjusts this each October 1.
• You must be a District resident, or be establishing DC residency in the immediate future, and the home must qualify for the DC Homestead Deduction as your principal residence.
• Eligible property is a house, a condominium unit, or an economic interest in a co-op unit, plus any other lots conveyed on the same deed within the price ceiling.
• The entire benefit must go to the buyer. The seller still pays the full transfer tax, and this must be shown on the settlement statement or closing disclosure.

How to apply

1. 1Before you write an offer, confirm the price is at or under $777,000 and that no buyer has ever owned a homestead-deducted principal residence in DC. Tell your agent and title company you will claim the reduced rate.
2. 2Gather the most recent federal tax return (Form 1040) for every buyer and every adult who will live in the home. Anyone who was not required to file marks that on the form instead.
3. 3Your title company completes the current version of OTR Form ROD 11 and files a Homestead Deduction application (Form ASD-100 for a house or condo, ASD-111/COOP for a co-op) for the property.
4. 4The ROD 11, the tax returns, the homestead application confirmation, and the settlement statement are submitted to the Recorder of Deeds together with the deed at recording. The reduced rate is applied then.
5. 5Keep copies. OTR can audit the application later and may ask for additional documents.

Watch out for

• It must be claimed when the deed is recorded. OTR states the reduced rate cannot be applied for after recording. Confirm the title company has the current ROD 11 in the closing package.
• Only the current version of Form ROD 11 is accepted. OTR revises the form each October 1 with new income and price figures, and prior versions are rejected.
• The definition of first-time is lifetime in DC, not three years. If you owned a DC condo years ago and took the homestead deduction, you do not qualify, even though HPAP or HomeAdvantage DC might still treat you as first-time.
• Income counts every adult who will live in the home, not just borrowers, using federal adjusted gross income.
• If you also qualify for the Lower Income Homeownership Exemption (tax abatement), use that instead. It exempts the recordation tax entirely and adds five years of no property tax. The two cannot be combined.
• The price ceiling and income table change each fiscal year on October 1. A closing that slips from late September into October can land on different limits.

Straight answers

Sources

• OTR, Form ROD 11, Reduced Recordation Tax Rate for First-Time Homebuyers FY2026 (PDF) (read Sep 23, 2026)
• OTR, ROD 11 Reduced Recordation Tax Rate for First-Time Homebuyers FY2026 publication page (published October 1, 2025) (read Sep 23, 2026)
• OTR, Notice of Oct. 1, 2025 Tax Changes (purchase price cap raised to $777,000 for tax year 2026) (read Sep 23, 2026)
• OTR, Reduced Recordation Tax Rate for First-Time Homebuyers FY2025 (prior-year income table, PDF) (read Sep 23, 2026)

Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.