The First-Time Homebuyer Reduced Recordation Tax officially goes into effect on October 1, 2017. It significantly reduces the recordation tax for qualified DC homebuyers, from 1.45% to 0.725%. This will save those looking to plant their roots in the District thousands of dollars at the time of purchase.
- The buyers must either be DC residents or intend to become DC residents with the prospective purchase.
- The buyers must not earn more than 180% of the Area Median Income (AMI).
- The home must not have a purchase price exceeding $625,000, adjusted annually for inflation.