Tax filing season is over, but did you know D.C.鈥檚 Office of Tax and Revenue (OTR) is available year-round to walk residents through key tax topics, including best practices for filing, tax credits and the new residential split tax rate changes?
Taxpayers can learn how to avoid common tax filing mistakes, maximize deductions, and navigate updates that may impact their taxes, according to OTR.
The District鈥檚 Office of Tax and Revenue is also the agency that bills homeowners twice yearly for property tax with due dates on March 31, and Sept. 15.
New Property Tax Rates
In October, the District of Columbia updated how it classifies real residential property to ensure property tax rates are applied fairly based on the type and value of the property, according to the Office of Tax and Revenue.
The new split tax rate is categorized in two classifications: Class 1A, which includes properties with three or more units, and Class 1B consists of properties with two or fewer units.
For Class 1B properties valued over $2,500,000, the tax rate is split. The first $2,500,000 is taxed at a rate of $0.85 per $100 of assessed value. Any value above $2,500,000 is taxed at $1.00 per $100. Class 1B properties valued under $2,500,000, as well as all Class 1A properties, continue to be taxed at the $0.85 rate.
How the math works is that the assessed value of the property is divided by $100. That amount is then multiplied by the applicable tax rate for the property.
provides the following example if a residential property is under the Class 1A tax rate at $0.85.
鈥淚f your property is assessed at $500,000, divide $500,000 by 100; that amount is $5,000. Then multiply $0.85 by $5,000. Your annual tax is $4,250 (before the homestead deduction, senior citizen tax relief, and/or trash credits).鈥
OTR Serves Residents as a Tax Liaison
A division of OTR is its (OTA) which plays a vital role in assisting District residents and businesses navigate complex tax challenges. Its mission is to promote an effective tax system, ensure fair and equitable treatment for all taxpayers, and educate them on their rights and responsibilities.
The Office of the Taxpayer Advocate achieves this through three key areas:
- Individual advocacy: Taxpayer advocate specialists work directly with taxpayers facing challenges with the OTR to find resolutions.
- Systemic advocacy: OTA reviews OTR policies and suggests revisions to ensure fair treatment for all District taxpayers.
- Outreach and education: OTA engages with the community, offering educational opportunities to inform taxpayers about their rights and responsibilities.
One example of taxpayer advocate specialists鈥 efforts includes proactively researching the Federal Employee Retention Credit (ERC), which was introduced under the CARES Act in 2020 to help businesses retain employees during the COVID-19 pandemic.
Receiving the ERC often requires adjustments to a company鈥檚 D.C. tax return. As a result, OTA was able to resolve District tax responsibilities for numerous residents fairly and efficiently.
Serving Businesses and Residents on Individual Income and Real Property Tax Matters
Worried about missing a real property tax payment deadline, a long-time senior District resident reached out to the Office of Tax and Revenue in distress, OTR officials told The 最新麻豆影音视频. With patient guidance, they were walked through the online payment process, ensuring each property payment was submitted and confirmed.
By the end of the call, their frustration turned to relief, and they expressed gratitude and confidence in managing the process independently in the future.
For additional information on the updated classifications and tax rates, visit OTR鈥檚 website and refer to OTR鈥檚 Residential Split Tax Rate FAQ. Taxpayers with ongoing tax issues can contact OTA at (202) 442-6348 or by email at taxpayeradvocate@dc.gov. For other inquiries, contact OTR鈥檚 Customer Administration at (202) 727-4TAX (727-4829).