The District of Columbia homestead deduction provides tax relief to resident homeowners. Resident homeowners may deduct $87,050 (in 2024) from the assessed value of their home before calculating property taxes owed. The senior citizen and disabled person credit (commonly referred to as the senior credit) provides additional tax relief to senior citizens and people with disabilities, who often have fixed income, and may struggle with rising property taxes.

Our office recently released the latest quarterly revenue estimate for the District of Columbia Budget and Financial Plan for the fiscal years 2023 to 2027. The revenue estimate for the fiscal years 2024 to 2027 is unchanged from September 2023. However, the revenue estimate for the fiscal year 2023 has been revised upwards by $82.9 million due to one-time payments and year-end accounting adjustments.

Each month, the Office of Revenue Analysis in the DC Office of the Chief Financial Officer publishes a review of economic and tax revenue data for DC. The review includes data on employment and wages, residential and commercial real estate, hospitality, the US economy and federal government, and DC tax collections. Below are the highlights from our latest review.  

The District of Columbia’s property tax circuit breaker, officially known as the Schedule H Homeowner and Renter Property Tax Credit, aims to provide property tax relief to very low-income households. The policy enables eligible claimants to claim a refundable tax credit on their District income tax returns when their property tax liability exceeds a certain percentage of their income. The existing policy divides claimants into two groups: those who are 70 or older and those younger than 70.