Updated October 2026. D.C. Code §§ 47-903, 42-1103, 47-902 and 47-1431, and the Office of Tax and Revenue’s Recorder of Deeds rates, checked on October 31, 2026.
As of October 2026, DC charges two deed taxes at the same rate: 1.1% each on homes sold for less than $400,000, and 1.45% each at $400,000 or more, applied to the whole price. The seller owes the transfer tax by law. Who pays the recordation tax is up to the contract. On a $650,000 home, each tax is $9,425.
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Jump to: 📊 Rates · 🧗 The $400,000 line · 🤝 Who pays · 🏷️ Buyer programs · 📝 Paperwork · 🚫 Exemptions · ❓ FAQ
Key takeaways
- The higher rate isn’t marginal. Cross $400,000 and 1.45% applies to every dollar, so $1,000 more in price adds $2,822 in combined tax.
- Commercial property pays 1.45% on each tax at any price. OTR lists a 2.9% rate when a controlling interest in an entity that owns DC real estate changes hands.
- Qualifying first-time DC buyers can get a 0.725% recordation rate, but the whole benefit goes to the buyer.
- The deed and its tax return must be recorded within 30 days of signing the deed.
What are DC’s recordation and transfer tax rates?
Both taxes start at 1.1%. The recordation tax comes from D.C. Code § 42-1103(a) and the transfer tax from § 47-903(a). Each statute then adds 0.35% on any deed except a residential sale under $400,000. The Office of Tax and Revenue’s Recorder of Deeds page shows the result:
| Type of transfer | Recordation tax | Transfer tax | Combined |
|---|---|---|---|
| Residential, under $400,000 | 1.1% | 1.1% | 2.2% |
| Residential, $400,000 or more | 1.45% | 1.45% | 2.9% |
| Commercial, any price | 1.45% | 1.45% | 2.9% |
| First-time DC homebuyer, eligible home | 0.725% | 1.1% or 1.45% | 1.825% or 2.175% |
OTR applies the rates to the price, or to fair market value when the price is nominal, which it defines as less than 30% of market value. Earlier temporary commercial surcharges in the statutes have expired or been repealed, so today’s commercial rate is 1.45% per tax. For a transfer of a controlling interest in an entity that owns DC property, OTR lists an economic interest rate of 2.9%.
Why does $400,000 matter so much in DC?
Because the higher rate applies “on the entire amount,” in OTR’s words. It doesn’t kick in only on dollars above $400,000. Here’s what that does at nearby prices:
| Sale price | Rate per tax | Each tax | Both taxes |
|---|---|---|---|
| $350,000 | 1.1% | $3,850 | $7,700 |
| $399,000 | 1.1% | $4,389 | $8,778 |
| $400,000 | 1.45% | $5,800 | $11,600 |
| $650,000 | 1.45% | $9,425 | $18,850 |
| $1,000,000 | 1.45% | $14,500 | $29,000 |
The jump from $399,000 to $400,000 adds $2,822 in combined tax for $1,000 of price. That shapes pricing. If you pay only the transfer tax, you need about $401,400 to net what you’d keep at $399,999. If you pay both taxes, it’s closer to $402,900. Prices just over the line can leave a seller behind.
Pricing near $400,000? Run both numbers before you set a list price, and before you counter an offer that crosses the line. Our cost of selling calculator helps with the rest of the net sheet.
Who pays the transfer and recordation taxes in DC?
The two statutes treat them differently.
Transfer tax: the seller. Section 47-903(a) imposes the tax “on the transferor,” and § 47-903(c) gives the transferor responsibility for paying it. The buyer becomes jointly liable only if the seller fails to pay.
Recordation tax: whoever the contract says. Section 42-1103(c) makes the parties to the deed jointly and severally liable. The law doesn’t pick one, so your purchase contract does. Read that clause closely, and ask your settlement agent how it will appear on the statement.
For how the rest of the closing costs usually split, see who pays closing costs when selling.
Which DC buyer programs change the tax math?
Two, and it helps to know how each affects you as the seller.
First-time DC homebuyer rate
Since October 1, 2017, § 42-1103(e) cuts the recordation rate to 0.725% on a deed for an eligible home bought by a first-time DC homebuyer. The buyer must certify they’re a first-time DC buyer and a bona fide DC resident. They must also show household income no higher than 180% of area median income and file a homestead application. The statute says the entire benefit goes to the buyer, as shown on the settlement statement. If your contract has the buyer paying recordation tax, this changes nothing for you.
Lower income homeownership exemption
Under § 47-902(9) and § 47-3503, a sale to a qualifying lower-income household is exempt from both the recordation and transfer taxes. But for the transfer tax exemption, the buyer must receive a credit against the price equal to the tax that would have been due. In plain terms: you don’t pay the transfer tax to DC, but you give the same amount to your buyer. Your net stays about the same.
What paperwork goes with the DC deed taxes?
Each deed is filed with a return signed by all parties, setting out the price. Both statutes require it, and OTR’s forms list it as Form FP-7/C. Your settlement agent prepares it with the deed.
Timing matters. Section 47-1431(a) says a deed must be recorded within 30 days of signing, with the lot and square number of the property. Submit earlier and the taxes are due on submission. The Recorder of Deeds charges a $30 fee to record a deed, and OTR says its staff can’t give legal advice or help fill in forms.
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Buy a home →The settlement agent collects both taxes at closing and sends the deed to the Recorder of Deeds at 1101 4th Street SW. You’ll see both taxes on your closing statement.
Which DC transfers are exempt from the transfer tax?
Section 47-902 lists them. The ones homeowners meet most:
- Transfers between spouses, parent and child, grandparent and grandchild, or domestic partners, with no actual payment.
- Transfers under a divorce or separation decree or agreement.
- Putting the home into your revocable trust, and the trust passing it to a beneficiary at death.
- Transfers to a named beneficiary of a transfer on death deed.
- Deeds that only correct or confirm an earlier recorded deed.
- Transfers to a community land trust.
A normal sale to an unrelated buyer isn’t on the list. If you think an exemption applies, the settlement agent will need the supporting forms at recording.
How do DC deed taxes fit into your sale?
At 1.1% or 1.45% of the price, the transfer tax is one of the largest lines on a DC seller’s closing statement. Add your loan payoff, prorated property tax and settlement fees, plus anything you agree to cover. Selling a rented home? Check the tenant rules first. Our DC by-owner guide covers TOPA, disclosures and the full path.
The tax is the same however you sell, but the listing cost isn’t. As an example only, a 3% listing commission on a $650,000 home would be $19,500. Commissions are not set by law or NAR rules and are negotiable, you choose whether to offer buyer-agent compensation, and those offers haven’t appeared on the MLS since August 17, 2024. Hiring an agent isn’t required in DC; it’s your choice, and both paths are fair.
Beycome is a full platform to sell, buy and close, and lists DC homes on the major home search sites and Bright MLS. Basic is $99 with $0 due to Beycome at closing, and Enhanced is $399. Concierge is $1,399 (its list price), with an expert who works with you and keeps every decision yours. 22,000+ homeowners have sold with Beycome, saving over $225 million (Beycome internal data, October 2026). Start your DC listing, or compare with selling costs by state.
DC transfer and recordation tax FAQ
What is the transfer tax in Washington, DC?
1.1% for homes under $400,000 and 1.45% at $400,000 or more, on the full price. A recordation tax at the same rate is charged too.
Who pays the transfer tax in DC, buyer or seller?
The seller, under D.C. Code § 47-903. The buyer is liable only if the seller doesn’t pay.
Who pays the recordation tax in DC?
The law makes both parties liable, so the purchase contract decides who pays it.
How much are DC closing taxes on a $500,000 home?
$7,250 for each tax at 1.45%, or $14,500 for both. How they split depends on your contract.
Is the DC 1.45% rate charged only above $400,000?
No. At $400,000 or more, 1.45% applies to the entire price, not just the part over $400,000.
Does the first-time homebuyer rate lower the seller’s DC taxes?
No. The 0.725% recordation rate benefits only the buyer. The seller’s transfer tax doesn’t change.
How long do I have to record a deed in DC?
30 days from signing, under D.C. Code § 47-1431. The settlement agent usually records it right after closing.
Reviewed by Beycome Brokerage Realty LLC, licensed real estate brokerage (DC #REO40000533). Licenses: beycome.com/faq/how-to/are-you-a-licensed-broker/.
Tax examples use the residential rates in D.C. Code §§ 47-903 and 42-1103 as shown by OTR on October 31, 2026, with no exemptions. Break-even prices are rounded. Your settlement agent confirms final amounts.
Prices were read on beycome.com on October 31, 2026 and may change. In DC, Basic is $99 and Enhanced is $399. Concierge is $1,399 (its list price). “$0 at closing” means no Beycome fee at closing; taxes, settlement fees and any buyer’s agent pay you agree to still apply.
Commission figures are examples only. Real estate commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent; since August 17, 2024, those offers can’t be shown on the MLS.
This is general information, not legal or tax advice.
Sources
- DC Office of Tax and Revenue, Recorder of Deeds FAQs (deed recordation and transfer tax rates, economic interest rate, recording fees), read October 31, 2026.
- D.C. Code § 47-903 (transfer tax): code.dccouncil.gov, read October 31, 2026.
- D.C. Code § 42-1103 (recordation tax; first-time homebuyer rate): code.dccouncil.gov, read October 31, 2026.
- D.C. Code § 47-902 (transfer tax exemptions) and § 47-3503 (lower income homeownership): 47-902 and 47-3503, read October 31, 2026.
- D.C. Code § 47-1431 (30-day recording): code.dccouncil.gov, read October 31, 2026.
- Beycome, Flat Fee MLS Washington DC (packages and prices), read October 31, 2026.
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