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).

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.

Reduced Recordation Tax Rate for First-Time Homebuyers (DC) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: 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. Residency requirement: Applicant must be, or intend to immediately become, a District resident at the time the deed is offered for recordation. 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.

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.

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.

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

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. Funds are reserved through Application (Form ROD 11) filed at the time the deed is offered for recordation; cannot be applied for after recording. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.