What is the District of Columbia transfer tax rate?

The District of Columbia charges a deed transfer tax of about 1.1 percent on properties at or below the high-value threshold and about 1.45 percent on properties above it. A separate recordation tax applies at the same tiered rates, so the combined burden on a transaction can approach 2.2 to 2.9 percent.

Who pays the transfer tax in the District of Columbia?

By custom in the District of Columbia, the seller typically pays the transfer tax and the buyer pays the recordation tax, each at the tiered rate. The split can be negotiated in the sales contract, but both taxes are due at closing on the same price base.

What is the high-value threshold in the District of Columbia?

The District of Columbia applies the higher rate tier to consideration above a set threshold, commonly 400,000 dollars. At or below that amount the lower rate applies; above it the higher rate applies to the full consideration. Verify the current threshold and rates with the DC Office of Tax and Revenue.

Are there exemptions to the District of Columbia transfer tax?

Yes. The District of Columbia offers reduced rates or exemptions for certain first-time homebuyers and for some transfers such as those between spouses or by gift. Eligibility rules are specific, so confirm with the DC Office of Tax and Revenue or your settlement agent.

Is the transfer tax the same as recordation tax?

No. The transfer tax applies to transferring the deed and is usually paid by the seller, while the recordation tax applies to recording the deed and is usually paid by the buyer. In the District of Columbia they share the same tiered rate structure but are two separate taxes.

District of Columbia Real Estate Transfer Tax Calculator

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The District of Columbia charges two taxes on a property transaction: a transfer tax (usually the seller) and a recordation tax (usually the buyer). Both use the same tiered rate that is higher above a high-value threshold. This tool estimates either side or the combined total.

How it works

Each tax is the consideration times the rate tier that applies to the price:

rate = low tier  if price ≤ threshold
rate = high tier if price > threshold   (applies to full consideration)
transfer tax    = price × rate          (typically seller)
recordation tax = price × rate          (typically buyer)
combined        = transfer tax + recordation tax

The District of Columbia low tier is about 1.1 percent and the high tier about 1.45 percent, with the threshold commonly at 400,000 dollars.

Example and notes

On a 600,000 dollar home, the price is above the threshold so the high tier of 1.45 percent applies: each tax is 600,000 × 0.0145 = 8,700 dollars, for a combined 17,400 dollars across the transfer and recordation taxes. First-time buyers and certain transfers may qualify for reduced rates, and the threshold and rates change — confirm with the DC Office of Tax and Revenue and your settlement agent before closing.