Washington DC Closing Tax Guide
DC Recordation and Transfer Tax: What Buyers and Sellers Pay at Closing
The two taxes charged when a Washington DC deed is recorded, who the law assigns them to, and the reduced rate for first-time buyers.
The short answerWashington DC charges two taxes when a deed is recorded: a deed recordation tax and a deed transfer tax. Each is 1.45% of the price on residential sales of $400,000 or more, and 1.1% below $400,000. DC law places the transfer tax on the seller and makes both parties liable for the recordation tax. Qualifying first-time DC homebuyers pay a reduced 0.725% recordation rate.
Source: DC Office of the Chief Financial Officer, Tax Rates and Revenues, Property Taxes; DC Code § 42-1103.
How much are DC recordation and transfer taxes?
Washington DC charges two taxes when a deed is recorded. On a residential sale of $400,000 or more, the deed recordation tax and the deed transfer tax are each 1.45% of the price, applied to the entire amount. Below $400,000, each is 1.1%.
| Tax | Under $400,000 | $400,000 or more | Who DC law assigns |
|---|---|---|---|
| Deed recordation tax | 1.1% | 1.45% | Both parties, jointly |
| Deed transfer tax | 1.1% | 1.45% | Seller |
Residential rates. The tax is based on the price paid. When the price is nominal, meaning less than 30% of fair market value, OTR uses fair market value instead. Source: DC OCFO, Tax Rates and Revenues, Property Taxes; OTR, Recorder of Deeds FAQs; DC Code § 42-1103 and § 47-903.
Who pays DC recordation and transfer tax?
DC law places the transfer tax on the seller. DC Code § 47-903 imposes it on the transferor. For the recordation tax, DC Code § 42-1103 makes the parties to the deed jointly and severally liable, so the sales contract sets who pays it. Both taxes are paid when the deed is submitted to the Recorder of Deeds.
Can first-time DC homebuyers pay less?
Yes. A qualifying first-time DC homebuyer pays a reduced recordation tax of 0.725% on a house or condominium. The seller still pays the transfer tax, and the full benefit of the reduced rate must go to the buyer.
- The buyer is a bona fide DC resident and a first-time District homebuyer.
- Combined household federal adjusted gross income is no more than 180% of HUD's Area Median Income.
- The home is eligible property, the price is within the purchase price ceiling OTR sets each year, and the buyer files a homestead deduction application.
- The application, Form ROD 11, is filed when the deed is offered for recordation. OTR does not accept it after the deed is recorded.
- For a cooperative unit, the reduced rate is 1.825% under $400,000 and 2.175% at $400,000 or more.
Source: DC Code § 42-1103(e); OTR, Form ROD 11, Reduced Recordation Tax Rate for First-Time Homebuyers.
What should buyers and sellers do before a DC closing?
- Confirm whether the price falls under or over $400,000. The higher rate applies to the whole price, not only the amount above the threshold.
- Set out in the sales contract who pays the recordation tax.
- First-time buyers: check the current ROD 11 income limits and price ceiling early, and gather the documents the form requires before settlement.
- Sellers: plan for the transfer tax in net proceeds. DC law assigns it to the seller.
Frequently Asked Questions
What is the DC transfer tax rate?
1.45% of the price on a residential sale of $400,000 or more, and 1.1% below $400,000. The DC deed recordation tax uses the same two rates.
Who pays the DC transfer tax?
The seller. DC Code section 47-903 imposes the transfer tax on the transferor.
Who pays the DC recordation tax?
Both parties are liable under DC law, and the sales contract decides who pays. DC Code section 42-1103 makes the parties to the deed jointly and severally liable.
Do first-time homebuyers pay less tax in DC?
Yes. A qualifying first-time DC homebuyer pays a 0.725% recordation tax on a house or condominium, subject to OTR's household income limit and purchase price ceiling.
Can a buyer apply for the first-time rate after closing?
No. OTR requires the Form ROD 11 application when the deed is offered for recordation and does not accept it after the deed is recorded.
Does the 1.45% rate apply to the full price?
Yes. At $400,000 or more, the 1.45% rate applies to the entire amount, not only the portion above $400,000.
What if a DC property sells for less than its value?
When the price is nominal, meaning less than 30% of fair market value, OTR taxes the deed on fair market value instead.
Buying or Selling in Washington DC?
FORWARD at Corcoran McEnearney advises buyers and sellers across Washington DC. Marc Cashin and Niki Lang can walk through the closing taxes on a specific property before an offer is written.
Talk to an AdvisorMore guides: Washington DC real estate guides · Closing taxes in DC, Maryland and Virginia compared · Washington DC real estate · All Resources
Sources: DC OCFO, Tax Rates and Revenues, Property Taxes; DC Code § 42-1103; DC Code § 47-903; OTR, Form ROD 11; OTR, Recorder of Deeds FAQs. Updated November 2026. General information, not tax or legal advice. Confirm with the DC Office of Tax and Revenue, a tax professional or an attorney before acting.