This federal tax credit is available to first-time homebuyers in the District of Columbia. The credit is the smaller of:

• $5,000, if single, married filing jointly, head-of-household, or qualifying widow(er) ($2,500, if married filing separately) or


• The purchase price of the home.
  

In general, you may claim the credit if:

• You purchased a main house during the tax year in the District of Columbia, and


• You (and your spouse, if married) did not own any other main home in the District of Columbia during the 1-year period ending on the date of purchase.

District of Columbia Tax Abatement Program

The DC Tax Abatement program is a program designed by the District of Columbia to help lower income homeowners purchase property. Here are some oft asked questions from agents and potential homebuyers.
What does the DC Tax Abatement program entitle me to do?

Assuming you qualify, you are exempt from paying transfer and recordation taxes. This means not only are you exempt from the 1.1% (of the purchase price) recordation tax; but customarily, the seller’s 1.1% (of the purchase price) transfer tax is credited to you at settlement. You will also be exempt from paying real property taxes for 5 years beginning the next full tax year after filing.

What are the qualifying factors to get DC Tax Abatement?

The qualifying factors for DC Tax Abatement are as follows:

1) The purchase price for the property must be $319,920 or less;
2) The income threshold – max gross income – must be
 

3) The property must be a principal residence; and
4) The purchaser must be domiciled in the District of Columbia.

To find out more information about this program contact Virginia Fall