What this calculator does
DC has two closing taxes of equal size. DC charges a recordation tax, customarily paid by the buyer, and a transfer tax, customarily paid by the seller — each 1.1% under $400,000 and 1.45% at $400,000 and above. Qualifying first-time homebuyers can use a reduced 0.725% recordation rate. This calculator applies the correct rate and shows the first-time buyer saving.
How to use it
- Enter the purchase price.
- Tick the box if you qualify as a first-time DC homebuyer under the income and price limits.
The formula
Recordation tax = price × 1.1% (under $400,000) or 1.45% ($400,000 and up), or 0.725% for qualifying first-time buyers. Transfer tax = price × 1.1% or 1.45%.
Worked example
Using the default inputs shown in the calculator above:
| Tax | Amount |
|---|---|
| Recordation tax at 1.450% | $9,425 |
| Transfer tax at 1.45% | $9,425 |
| Total | $18,850 |
DC recordation + transfer taxes: $18,850. Buyer recordation $9,425 (1.450%) · seller transfer $9,425 (1.45%).
DC charges two separate taxes of the same size — recordation, customarily paid by the buyer, and transfer, customarily paid by the seller. At $650,000 the price is over $400,000, so both use the 1.45% rate. Eligible first-time buyers can cut the recordation part to 0.725%.
Closing in DC
The first-time homebuyer rate requires DC residency after purchase and household income and price under limits that DC updates each October on Form ROD 11. DC also offers down payment help through the Home Purchase Assistance Program (HPAP). Co-op purchases use different rates.
DC closing taxes at common prices
DC applies one rate to the whole price, and that rate steps up at $400,000. The last column shows the buyer’s recordation tax at the 0.725% first-time homebuyer rate, for buyers who meet DC’s income and price limits.
| Price | Recordation (buyer) | Transfer (seller) | Total | Recordation at first-time rate |
|---|---|---|---|---|
| $350,000 | $3,850 | $3,850 | $7,700 | $2,538 |
| $399,000 | $4,389 | $4,389 | $8,778 | $2,893 |
| $400,000 | $5,800 | $5,800 | $11,600 | $2,900 |
| $600,000 | $8,700 | $8,700 | $17,400 | $4,350 |
| $800,000 | $11,600 | $11,600 | $23,200 | $5,800 |
| $1,200,000 | $17,400 | $17,400 | $34,800 | $8,700 |
Because the higher rate applies to the entire price, crossing $400,000 creates a cliff. A $399,000 sale pays $8,778 in combined taxes; a $400,000 sale pays $11,600, about $2,822 more for $1,000 more in price. Buyers and sellers near that line often keep it in mind when negotiating.
Common mistakes and tips
- Assuming the buyer pays both taxes — by custom the seller pays transfer tax.
- Missing the first-time rate by not filing Form ROD 11.
- Forgetting the $400,000 threshold moves both rates up.
- Using DC rates for Maryland or Virginia purchases.
Frequently asked questions
What are DC's recordation and transfer tax rates?
1.1% each under $400,000 and 1.45% each at $400,000 and above for houses and condos.
Who pays in DC?
By custom, the buyer pays recordation tax and the seller pays transfer tax.
What is the first-time homebuyer rate?
0.725% recordation tax for eligible buyers under DC's income and price limits.
How much is it on a $650,000 home?
Recordation $9,425 and transfer $9,425 at 1.45% each.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.