Home
HomeMeet RachelBuy Your HomeSell Your HomeDC AreaResources
 
FinancingReal Estate NewsLocal UtilitiesZoning & PermitsTaxesSettlement CompaniesMoving Tips



TAXES


There are many tax benefits to gain by owning a home. Consult your accountant or tax advisor regarding significant tax deductions you can claim as a homeowner. These include the interest paid on your mortgage annually, as well as the closing costs, points, realtor, attorney and inspection fees that you may acquire during your real estate transaction-whether buying or selling.

Taxes also play a role in your closing costs. Each jurisdiction has different tax rates and recording fees. Here is a breakdown of what to expect in terms of taxes for your purchase, sale and beyond in your jurisdiction:

District of Columbia:

Transfer and Recordation Tax:

  • Transfer Tax: Paid by the Seller upon transferring the deed at closing. 1.1% of sale price for homes less than $400,000. For homes above $400,000, 1.45% of sales price.
  • Recordation Tax: Paid by the Buyer upon recording of the deed after closing. 1.1% or purchase price for a home less then $400,000. Above $400,000, 1.45% of purchase price.
Property Tax Rate per $100 of Assessed Value:
  • Class One Property (Residential): $0.85
  • Class Two Property (Commercial): $1.85
  • Class Three Property (Vacant): $5.00
Property Tax Relief Programs:
  • Class One Residential property owners who are owner-occupants should apply every 5 years for a Homestead Deduction. This eliminates property tax for the first $64,000 of assessed value. If you and/or your spouse are 65 years or older, with a combined income less then $100,000-you may be able to get your payments reduced by half. For the application, click here.
  • Eligible home owners can apply for an Assessment Cap Credit. This would cap your assessment so it won’t increase more then 10% each year. For more information click here.
  • First-Time Homebuyer federal tax credit-If you bought a home used as your principal residence in DC and didn’t own another in DC for a year prior to purchase, you may qualify to receive a tax credit of $5000 or $2500 each if you are married and filling separately. For further information, click here.
  • Historic Properties-if you purchase a historic home, you can apply for tax credits for preserving your property as well as rehabbing a property. For a list of programs, click here.
  • For a list of many more tax relief programs, including tax deferral, abatement, lower-income and police benefits, click here.
Income Tax for anyone living in DC more then 183 days of the tax year:
  • First $10,000 = 4%
  • $10,000-40,000 = $400 + 6% of excess above $10,000
  • More than $40,000 = $2,200 + 8.5% of excess above $40,000

Northern Virginia:


The following taxes apply to all Virginia communities I cover:

Grantor’s Tax:
  • Seller pays $0.50 per $100 of sales price upon sale of property.
Income Tax:
  • $720 + 5.75% of all income over $17,000.

Arlington:


Search Real Estate Assessments: Arlington Real Estate Assessments
Search Real Estate Sales Records: Registry of Deeds
Real Estate Assessment Appeal


Property Tax Rate:

  • $0.818 per $100 of assessed value

Property Tax Relief:

  • If you are 65+ years old or disabled, you can apply to receive a tax deferral or exemption. To obtain information on Arlington’s Real Estate Tax Relief program, call the Department of Human Services at (703) 228-1350.
Alexandria:

Search Assessments and Sales Records: Alexandria Real Estate Assessments
Request for a Review of Your Real Estate Assessment

Search Assessments and Sales Records: for a Review of Your Real Estate Assessment


Property Tax Rate:

  • $0.83 per $100 of assessed value

Property Tax Relief:

If you are over 65 or disabled, here are the City’s tax relief income guidelines:

For Tax Deferral:

  • Household combined income of less than $72,000
  • Assets of household may not exceed $540,000 (excluding the house and up to 2 acres of adjoining property.)
Fairfax:

Search Real Estate Assessments: Fairfax Real Estate Assessments
Fairfax Real Estate Assessment Appeal Application.

Search Real Estate Assessments: Fairfax Real Estate Assessment Appeal

Property Tax Rate:

  • $0.89 per $100 of assessed value
  • Some areas of Fairfax have additional property tax. To search these areas, go to Special Tax Areas.
  • Some Service Charges are also included in your taxes depending on your area.

Property Tax Relief:

  • If you are over 65 or disabled, here are the County’s tax relief guidelines:
    ·         Combined Income of $52,000 or less-Full tax Exemption
    ·         Combined Income of $52,001-62,000-Exemption of 50%
    ·         Combined Income of $62,001-72,000-Exemption of 25%
    ·         The total net assets of the owner(s) is less than $340,000. (Excluding the value of the home and up to one acre of land it rests on.)

Falls Church:

Search Real Estate Assessments: Falls Church Real Estate Assessments
Appeal Real Estate Assessments

Property Tax Rate:

  • $1.01 per $100 of assessed value.

Property Tax Relief:

  • Falls Church gives tax relief to citizens over 65 years of age or disabled persons. For more information, click here.



Rachel Burns. Your Home. My Mission. Evers & Co. Washington DC Real Estate, DC Real Estate, Alexandria Real Estate, Northern Virginia Real Estate, Luxury DC Real Estate.
Rachel Burns
Telephone
(202) 384-5140
 
Rachel Burns. Your Home. My Mission. Evers & Co. Washington DC Real Estate, DC Real Estate, Alexandria Real Estate, Northern Virginia Real Estate, Luxury DC Real Estate.
  Design by Style Agent