Closing costs in Washington, DC
In DC, the government's share of a home sale comes as two taxes at settlement: a recordation tax paid by the buyer and a transfer tax paid by the seller — each 1.1% of the price for homes under $400,000 and 1.45% at $400,000 or more. Qualifying first-time DC buyers pay a reduced 0.725% recordation rate on homes up to $777,000 (FY2026). On top come the usual title, lender and escrow charges. The calculator below shows your side of it.
Preset for DC — flip the toggle to compare. Guides: Maryland · Virginia · all three side by side.
Sellers: this excludes the real-estate commission, which is separate and negotiated in your listing agreement.
Get an exact estimate from Kelly →Rough estimate only — not a quote, and not legal or tax advice. Rates and program caps below are FY2026 figures from DC's Office of Tax and Revenue and the DC Code, current as of September 2026; the first-time-buyer price cap re-indexes every October 1. Who pays what is ultimately negotiable in the contract. Confirm exact figures with your lender and settlement/title company — Kelly will walk you through the real numbers for your deal.
DC's two taxes, and who pays them
Every DC sale triggers two mirror-image taxes at settlement, set by the same price test:
| Tax | Under $400,000 | $400,000 and up | Who pays |
|---|---|---|---|
| Recordation tax | 1.1% | 1.45% | Buyer — universal DC practice (DC Code §42-1103) |
| Transfer tax | 1.1% | 1.45% | Seller — set by statute (DC Code §47-903) |
Note the threshold works as a cliff, not a ladder: a $399,000 condo pays 1.1% on the whole amount; a $400,000 one pays 1.45% on the whole amount. Combined, the two taxes put 2.2%–2.9% of the price on the settlement statement before title, lender and escrow charges — one of the reasons DC closings cost more than Virginia's.
The first-time buyer reduced rate (ROD 11)
Qualifying first-time DC buyers pay a 0.725% recordation rate — half or less of the standard rate. For FY2026 (October 2025 – September 2026) the purchase price must be $777,000 or less, the buyer must be (or become) a DC resident buying a first home in the District, and household income must fall under the program's limits, which scale with household size and are republished by OTR each October (OTR notice of Oct. 1, 2025 changes — the $777,000 cap is the FY2026 figure — and Form ROD 11). On a $750,000 home that's a saving of about $5,400 at the table. The seller's transfer tax is unchanged. The price cap re-indexes every October 1 — worth checking the current figure if you're reading this later.
The DC Tax Abatement (ROD 9) — a different program
DC also runs a second, often-confused benefit: the Lower Income Homeownership Exemption, better known as the DC Tax Abatement. Its headline benefit is five years without property tax after purchase, and some qualifying transfers under the same law can also be exempted from recordation and transfer taxes at closing — your title company confirms exactly what your purchase qualifies for. Its purchase-price cap and income limits are stricter than the first-time program's and are republished by OTR each fiscal year — and unlike ROD 11, the form doesn't require you to be a first-time buyer (OTR Form ROD 9). Buyers who qualify for both programs stack a cheaper closing on top of five tax-free years — a combination Kelly checks for every eligible client.
What else is in “closing costs”
Beyond the two taxes: title search and title insurance, the settlement company's fee, lender charges and prepaid escrows (insurance, property taxes), and recording fees. As a rough planning figure, buyers should budget another ~1–1.5% for these — the calculator's "other" field. Sellers separately account for the real-estate commission set in their listing agreement. For the full context on each side of the deal, see the buyer's guide and seller's guide.
DC closing costs, asked and answered
Who pays closing costs in Washington, DC?
Both sides pay their own. By statute the seller owes the transfer tax, and by universal practice the buyer pays the recordation tax — each 1.1% under $400,000 and 1.45% at or above it. Each side also carries its own title, settlement and lender-related charges. Like most closing terms, the split can be renegotiated in the contract — buyer credits are a common ask.
How much are closing costs in DC for a buyer?
Plan on the 1.1% or 1.45% recordation tax plus roughly 1–1.5% for title, lender and escrow charges — call it 2.5–3% of the price for most buyers, less if you qualify for the first-time reduced rate. Kelly builds every client an exact, deal-specific estimate before the offer goes in.
What is the $400,000 threshold?
DC's recordation and transfer taxes each jump from 1.1% to 1.45% when the price reaches $400,000 — and the higher rate applies to the entire price, not just the amount above the line. It is one of the few places in the DMV where a slightly lower contract price can meaningfully change the tax bill.
How does the DC first-time homebuyer recordation reduction work?
Qualifying first-time DC buyers pay 0.725% recordation instead of 1.1%/1.45%. For FY2026 the home must cost $777,000 or less and household income must be under the program's limits, which scale with household size and are republished by OTR each October. It's claimed on Form ROD 11 at settlement — your title company files it, and Kelly flags eligibility early so nobody leaves the discount on the table.
Is the DC Tax Abatement the same thing?
No — it's a separate program with its own, stricter tests. The Tax Abatement (Form ROD 9) eliminates your property tax for five years, under a purchase-price cap and income limits that are stricter than the first-time program's and republished by OTR each fiscal year — and it doesn't require first-time-buyer status. Some buyers qualify for both programs at once.
Are DC closing costs higher than Maryland or Virginia?
Generally, DC and Maryland run meaningfully higher than Virginia, whose combined state and local rates are well under 1%. The right comparison depends on price and side of the deal — the three-jurisdiction calculator on this page shows it instantly, and the Maryland and Virginia guides break down their rules.
Can closing costs be negotiated in DC?
The tax rates themselves are fixed, but who effectively bears them isn't — seller credits toward buyer closing costs are a routine part of DC negotiations, especially in a balanced market. That's a negotiation Kelly runs deal by deal.
Know your DC costs before you write the offer.
Kelly builds every client a clear, deal-specific cost estimate up front — and negotiates credits and terms to keep more in your pocket.