District of Columbia
Variations in Receipt of Benefit
Benefit Varies with Income
Minimum Tax Amount Must be Paid
The benefit is a refundable income tax credit equal to the amount by which real property taxes paid exceeds a percentage of their household gross income for that year. It can also be applied to 20% of rent paid if the rent paid constitutes a property tax. The credit shall not exceed a total of $1,200. The amount of the credit will be annually adjusted based on the Consumer Price Index. For those under the age of 70, the size of the benefit is determined using three income brackets. For the lowest bracket, household income of $0 - $24,999, the tax credit equals 100% of property tax exceeding 3% of adjusted gross income. For the highest bracket, household income of $52,000 - $55,000, the tax credit equals 100% of property tax exceeding 5% of adjusted gross income. For those age 70 or older the tax credit equals 100% of the property tax that exceeds 3% of adjusted gross income For renters, the credit must be reduced by the amount of any rental supplement payments provided by Rental Housing Act of 1977. The credit may be used to reduce D.C. income or other property tax liabilities of the claimant before the remainder is refunded. If a claimant dies before receiving the benefit, the benefit will be applied to their estate. For tax year 2019 applications are filed by April 15, 2020.
How is Benefit Disbursed
Credit to the income tax bill
Eligible Property Type
Characteristics of Eligible Property
Eligible property is limited to the claimant's primary residence, whether owned or rented, and the surrounding land necessary for use as a home. It may include a multi-unit building or a multi-purpose building and a part of the land upon which it is located.
Description of Eligibility Criteria
To be eligible, claimant must be an owner of a home in D.C., or a lessee or tenant paying rent on a home in D.C., during the entire calendar year preceding the year in which he files a claim for relief. The benefit can only be applied if it is a claimant's primary place of residence. For tax year 2019 filing in 2020, the maximum adjusted gross income is $55,000 for those under the age of 70. For those 70 or older, the maximum adjusted gross income is $75,000. Income thresholds will be adjusted annually. Household gross income does not include gifts from a nongovernmental source, food stamps, or other food assistance provided by the government. Rent paid does not include advanced payments for another period, rental deposits, medical service or food provided by the landlord, right of occupancy payments which are exempt from D.C. taxation. A person claimed as a dependent on another person's tax return cannot receive these benefits unless they are 65 years of age or older.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
Local government covers all of its tax loss
Description of State Funding for Tax Loss
The credit is administered through the personal income tax.
[https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2019%20Schedule%20H.pdf Accessed 11/05/2021]
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