Quick answer
Washington, DC charges two deed taxes when a home sells. By custom, the seller pays the transfer tax and the buyer pays the recordation tax. Each is 1.1% of the price for homes under $400,000 and 1.45% of the full price at $400,000 or more. Qualifying first-time buyers pay a reduced 0.725% recordation tax on homes up to $777,000 in 2026.
- Under $400,000
- 1.1% each
- $400,000 and up
- 1.45% of the full price, each
- Who pays (by custom)
- Seller: transfer tax. Buyer: recordation tax.
- First-time buyer recordation
- 0.725% up to $777,000
The rates
| Sale price | Transfer tax (seller) | Recordation tax (buyer) | First-time buyer recordation |
|---|---|---|---|
| $350,000 | 1.1% = $3,850 | 1.1% = $3,850 | 0.725% = $2,537.50 |
| $399,000 | 1.1% = $4,389 | 1.1% = $4,389 | 0.725% = $2,892.75 |
| $400,000 | 1.45% = $5,800 | 1.45% = $5,800 | 0.725% = $2,900 |
| $600,000 | 1.45% = $8,700 | 1.45% = $8,700 | 0.725% = $4,350 |
| $800,000 | 1.45% = $11,600 | 1.45% = $11,600 | Not eligible (over $777,000) |
Why the $400,000 line matters
The 1.45% rate applies to the entire price, not just the amount above $400,000. A home at $400,000 owes about $1,400 more in each tax than one at $399,000. Sellers and buyers near that line should price and negotiate with it in mind.
The first-time buyer recordation rate
Qualifying first-time DC buyers pay 0.725% recordation tax instead of 1.1% or 1.45%, on homes up to $777,000 in 2026. The home must qualify for the Homestead Deduction, and the reduced rate has to be claimed at closing, not afterward. Let your title company know as early as possible.
Can buyer and seller split these taxes differently?
Who pays which tax is a custom, and the contract decides. In a competitive market a buyer may offer to cover more costs, and in a slow one a seller may agree to help with the buyer's costs. Agree on it in writing in the contract.
Frequently asked questions
Who pays transfer tax in DC, buyer or seller?
By custom the seller pays DC's transfer tax and the buyer pays the recordation tax. The contract can change that split.
What is the DC transfer tax rate in 2026?
1.1% of the price for homes under $400,000, and 1.45% of the full price for homes at $400,000 or more.
Is the 1.45% charged only on the amount over $400,000?
No. Once the price reaches $400,000, the 1.45% rate applies to the full price.
How much does a first-time buyer save on DC recordation tax?
The rate drops to 0.725% on homes up to $777,000. On a $600,000 home that is about $4,350 saved at closing.
Have a question about your situation?
I'm licensed in Maryland and DC and work in English and Spanish. Call or text, or send a message and my team will be in touch shortly. I'll personally help you work out the right next step.
Sources
- DC Office of Tax and Revenue: recordation and transfer taxes
- DC DHCD: first-time homebuyer program changes
General information, not legal, tax, or lending advice. Programs, rates, and limits change; confirm details with an approved lender or the program administrator. Facts checked October 20, 2026.