Property taxes across the DMV
Move across a river here and your property-tax system changes completely. DC taxes residential property at $0.85 per $100 of assessed value and hands owner-occupants a $91,950 homestead deduction. Maryland layers a small state rate under county rates and caps how fast an owner-occupant's taxable assessment can grow. Virginia has no state property tax at all — each locality sets its own rate and reassesses at market every year. Here's how the three systems actually work, with the current numbers.
Three systems, one region
The headline rates get the attention, but the mechanics decide your bill. DC shrinks an owner-occupant's taxable base with a flat deduction. Maryland lets assessments rise but caps the growth of the taxable amount for owner-occupants who file its homestead application. Virginia offers neither cushion — an annual market reassessment flows straight into the next bill unless the local board cuts the rate. Comparing the three by rate alone will mislead you; compare by system.
Washington, DC
| Item | Figure | Notes |
|---|---|---|
| Residential rate | $0.85 / $100 | Class 1A; homes of one or two units pay $1.00/$100 only on assessed value above $2,558,000 (DC OTR rates) |
| Homestead Deduction | $91,950 | Tax year 2026; subtracted from assessed value for owner-occupants who file once (DC OTR relief programs) |
| Senior / disabled relief | −50% | Halves the bill for qualifying owner-occupants 65+/disabled under the income cap (§47-863) |
| Assessment | Annual | Valued each January 1; notices by March |
The practical effect: on a typical owner-occupied DC home, the homestead deduction takes roughly $780 a year off the bill ($91,950 × $0.85/$100) — but only if the one-time application is on file. It's one of the first things Kelly checks for buyers settling in DC.
Maryland
Maryland has no single property-tax rate. A small state rate of $0.112 per $100 sits under county rates set each year — and in Montgomery County, under a stack of district add-ons that vary by address. The county's FY2027 general-fund rate is $0.6706 per $100, with schools, transit, fire and recreation levies added on top, plus urban-district rates in places like downtown Bethesda and Silver Spring (Montgomery County Resolution 20-1141). Two homes a mile apart can carry different totals — which is why Kelly pulls the actual tax bill for any Maryland home her clients consider, rather than quoting a countywide number. Prince George's and the other counties set their own rates annually; confirm current figures for a specific address.
Maryland's two safety valves matter more than the rates:
- The Homestead Tax Credit caps how fast an owner-occupant's taxable assessment can grow — at most 10% a year, and less in many counties. The famous catch: it isn't automatic. You must file the one-time application, and owners who never do can pay thousands more in a rising market (Maryland SDAT).
- The Homeowners' Property Tax Credit is a separate, income-based credit with an annual application (SDAT homeowners' guide).
Assessments run on a three-year rotation — a third of the state is revalued each year, and increases phase in over three years, which smooths the ride compared to DC and Virginia.
Virginia
Virginia levies no state property tax — rates are set entirely by each city and county, and Northern Virginia localities reassess at full market value every year (Va. Code Title 58.1, Ch. 32). Current rates in the localities Kelly's clients ask about most:
| Locality | 2026 rate / $100 | Source |
|---|---|---|
| Arlington County | $1.053 | County newsroom |
| Fairfax County | $1.12 | Adopted FY27 budget |
| City of Alexandria | $1.135 | City tax rates |
| Loudoun County | $0.805 | County tax rates |
The system's character: simple and market-true. There's no homestead cushion, so in a rising market your assessment — and bill — track the market directly unless the local board trims the rate. Boards genuinely differ year to year: Fairfax cut its rate for 2026 while Arlington raised its by two cents.
What this means when you're buying
Property tax is usually escrowed into the monthly payment, so these differences land in your month-to-month budget, not just at tax time. When clients compare homes across the river, Kelly puts the actual current bill and the system behind it side by side — a DC condo with homestead on file, a Montgomery rowhouse with capped growth, and an Arlington townhouse at market each behave differently over five years. Pair this guide with the DC, Maryland and Virginia closing-cost guides and the affordability calculator for the full cost picture.
Vice President & Partner, Mollaan Babbington Group at Compass · Licensed in DC · MD · VA
Rates and program figures are 2026 numbers from the official sources linked above, verified September 2026 — not tax advice. Rates reset annually, Maryland totals vary by address and district, and relief programs have application requirements and deadlines. Confirm the current figures for a specific property with the jurisdiction or your tax professional; Kelly pulls the actual bill for every home her clients pursue.
DMV property taxes, asked and answered
How much are property taxes in Washington, DC?
The residential rate is $0.85 per $100 of assessed value — one of the region's lower rates — and owner-occupants who file the homestead application subtract $91,950 from their assessed value first (2026 figures). Homes of one or two units pay a higher rate only on value above roughly $2.56 million.
What is the DC Homestead Deduction?
A $91,950 reduction in your home's taxable assessed value, for owner-occupants who file a one-time application — worth roughly $780 a year at the current rate. It also brings a cap on how fast your taxable assessment can rise (DC Code §47-864). Filing it is one of the first things to do after closing on a DC home.
Is the Maryland Homestead Credit automatic?
No — and that's the expensive misunderstanding. You must file a one-time application with the state; only then does the cap on your taxable assessment's annual growth apply. Owners who never file can watch their bills climb with no brake in a rising market.
Which has the lowest property taxes — DC, Maryland or Virginia?
It genuinely depends on the home and how long you'll own it. DC pairs a low rate with a big owner-occupant deduction; Maryland's totals stack state, county and district layers but cap growth for owner-occupants; Virginia reassesses at market every year with no owner-occupant cushion, and rates vary by locality (some parcels carry special-district add-ons). Kelly compares the actual current bills — not the headline rates — when clients weigh homes across jurisdictions.
How often is my home reassessed?
DC and Northern Virginia reassess every year at market value. Maryland revalues each property every three years and phases increases in over three years — the gentlest cadence of the three.
Do I pay property tax directly?
Most owners with a mortgage don't — the lender collects a twelfth of the estimated annual tax with each monthly payment and pays the bill from escrow. That's why a tax difference between two homes shows up in your monthly budget from day one.
Know the real numbers before you choose.
Rates, taxes, closing costs — Kelly puts the actual figures for your specific homes side by side, so the decision is made on facts.