District of Columbia Real Estate Transfer
Tax Calculator

Washington D.C. imposes a transfer (deed recordation) tax with two tiers.

For sales of $400,000 or less, the rate is 1.1% split between buyer and seller. For sales over $400,000, the rate is 1.45% split.

On a $600,000 condo, total transfer taxes are approximately $8,700. DC also offers a first-time homebuyer recordation tax exemption for income-qualifying buyers on amounts up to $632,000.

The rate in District of Columbia is **1.1% for sales up to $400,000; 1.45% for sales over $400,000**. Payment responsibility: Split between buyer and seller.

No additional county or local tax applies beyond the state rate. The governing statute is D.C.

Code § 42-1101 et seq..

Transfer taxes are calculated on the "consideration" — the actual sale price paid for the property. Most states exempt certain transfers from this tax, including: gifts (transfers for no or nominal consideration), spousal transfers, and government-to-government transfers.

Verify exemptions before assuming a particular transaction qualifies — the exemption application process typically requires filing specific forms at closing.

To calculate the District of Columbia transfer tax: take the sale price, apply the rate of **1.1% for sales up to $400,000; 1.45% for sales over $400,000**, and add any applicable local surcharges (none in this state). The tax is based on the gross consideration — not the net equity or the loan amount.

If a property sells for $450,000, apply the rate to the full $450,000 regardless of whether the seller has an existing mortgage.

Example calculation in District of Columbia: On a $400,000 sale at 1.1% for sales up to $400,000; 1.45% for sales over $400,000: multiply $400,000 by the applicable percentage rate. Verify the exact rate with your title company or closing attorney.

Who pays is often negotiable between buyer and seller, even in states with a legal default payer. In competitive markets, sellers may agree to pay the buyer's share (or vice versa) as part of closing cost concessions.

The amount actually paid by each party should be reflected in the purchase contract. The title company or real estate attorney will collect the correct amount at closing and remit it to the appropriate government authority.

District of Columbia exempts certain transfers from the transfer tax: **First-time DC homebuyer exemption from recordation tax on amounts up to $632,000 (income-limited)**. To claim an exemption, the deed or conveyance document must typically include a statement of exemption, and in some states a separate exemption affidavit must be filed with the recording.

Not claiming the exemption at the time of recording can make it difficult to obtain a refund later — work with a real estate attorney if your transaction may qualify.

• Nationally, common exemptions across states include: (1) transfers between spouses on divorce or death
• (2) transfers to a revocable living trust where the grantor is the beneficiary
• (3) deeds in lieu of foreclosure or foreclosure sales
• (4) transfers to nonprofit organizations
• (5) government-to-government conveyances
• and (6) certain court-ordered transfers. Even in states with generous exemptions, verify that your specific transaction meets the statutory criteria — exemptions are narrowly construed by most state revenue departments.

First-time homebuyer programs in some states include a transfer tax credit or reduced rate. District of Columbia offers some first-time homebuyer benefit — review the specific conditions carefully and confirm with your closing agent.

In District of Columbia, the transfer tax is conventionally paid by Split between buyer and seller. This convention is established by state law or by local custom, but the contract between buyer and seller can override it.

In hot markets, sellers sometimes offer to cover the buyer's share of transfer taxes as a concession. In buyer's markets, buyers may negotiate the reverse.

Understanding who pays matters for budgeting and offer negotiation. A seller's net proceeds calculation must deduct the transfer tax.

A buyer's cash-to-close estimate must include any buyer-paid transfer taxes plus all other closing costs. Real estate agents and title companies typically present the expected transfer tax allocation in the closing disclosure before closing day.

If you are using a real estate attorney for closing (required in some states, optional in others), they will prepare the transfer tax forms and ensure proper remittance. If you are using a title company, they handle the same functions.

Either way, you should receive a final closing disclosure at least 3 business days before closing that itemizes all transfer taxes and who is paying what amount.

For related real estate closing costs in District of Columbia: the Title Insurance Calculator covers owner's and lender's title insurance premiums by state. The Property Tax Calculator estimates annual property taxes after purchase.

The District of Columbia Homestead Exemption Calculator shows potential property tax savings for primary residence owners. To find a District of Columbia real estate attorney for closing, search our attorney directory.