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Reduced Recordation Tax Rate for First-Time Homebuyers (DC)

DC Office of Tax and Revenue (OTR), Recorder of Deeds · Washington, District of Columbia

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Income limit

$278,460

The household income limit the program publishes

Price cap

$753,000

Highest purchase price the program allows

What is Reduced Recordation Tax Rate for First-Time Homebuyers (DC)?

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) is down payment assistance for homebuyers in Washington, District of Columbia, administered by DC Office of Tax and Revenue (OTR), Recorder of Deeds.

  • For deeds recorded on or after October 1, 2017, qualifying first-time District homebuyers pay a reduced recordation tax rate of 0.725% on houses and condominiums (versus the standard rate), with parallel reductions for co-op economic-interest transfers. To qualify, the buyer must be (or intend to become) a DC resident, be a first-time District homebuyer, file a homestead deduction application for the property, and have combined household income under the applicable ceiling, with the purchase price below the annual ceiling. Application is made on Form ROD 11 at the time the deed is recorded; it cannot be claimed afterward and is subject to audit.
  • Recordation tax cut to 0.725% on houses/condos for first-time DC buyers.
  • Reduced co-op transfer recordation rates.
  • One-time closing-cost savings.
  • Can be combined with DC DPA programs.
  • No repayment (tax reduction, not a loan).
  • Funding comes from DC tax expenditure (forgone recordation tax revenue).

Do you have to pay it back?

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) is down payment assistance and is repaid under the terms set by DC Office of Tax and Revenue (OTR), Recorder of Deeds.

  • Repayment is triggered by Subject to audit after deed recording; if additional tax is due on audit, grantee(s) responsible for tax, interest, and penalties.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Applicant who previously owned a DC homestead residence ONLY jointly with an ex-spouse, and relinquished ownership under court order/separation agreement, can still qualify as a first-time District homebuyer
  • The home is occupied as a primary residence
  • Residency: Applicant must be, or intend to immediately become, a District resident at the time the deed is offered for recordation
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. Must file Form ROD 11 at time of recording (cannot apply after deed recorded); must file DC Homestead Deduction Application and have the property qualify; entire benefit must go to grantee, not shared with seller; must submit Closing Disclosure and Form 1040 for each grantee/resident; subject to post-recording audit. FY2026 (eff. 10/1/2025): purchase-price ceiling raised to $777,000 and income ceilings increased per OTR notice; FY2025 figures used here and flagged because the FY2026 ROD 11 PDF is a fillable template with blank table cells.

The program excludes

  • Manufactured homes
  • Purchases above the $753,000 price cap
  • Households above $278,460

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) limits household income to $278,460.

  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) caps the purchase price at $753,000.

  • Eligible property types include Single Family, Condo, and Cooperative.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) serves buyers purchasing in Washington, District of Columbia.

How do you apply?

Applications for Reduced Recordation Tax Rate for First-Time Homebuyers (DC) go through DC Office of Tax and Revenue (OTR), Recorder of Deeds, which publishes the current terms and the application steps on its own site.

  1. Contact DC Office of Tax and Revenue (OTR), Recorder of Deeds to reserve funds

    Funds are reserved through Application (Form ROD 11) filed at the time the deed is offered for recordation; cannot be applied for after recording, and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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