DC Lower Income Tax Abatement Program

DC has implemented new income limits for their tax abatement program. With one person in the household the income limit is $53,760. With two, the income limit is $61,440, and it goes up to $101,400 for a household of 8. Purchasers are exempt from property tax for FIVE YEARS (!!), do not have to pay the 1.1% recordation tax, and receive the seller's 1.1% transfer tax as a credit. The purchase price must be below $326,760. I have one client who was able to take advantage of the Tax Abatement program and has since switched jobs and gotten a pay increase but is still exempt from paying taxes on the property. It's a great program that can allow folks with moderate means to purchase property and not have to worry about their tax bills for the first five years of ownership.