In preparation for tax season, we’ve put together a short summary of the essential information regarding real property and individual income tax. Also included are links to resources with more detailed information. We hope this will help guide you through what lies ahead.

Real Property Tax

In the District, the Office of Tax and Revenue assesses all properties at 100% of their estimated market value. This estimate is the most probable price the property would sell for under prevailing market conditions. Residential properties are then taxed 85 cents on every hundred dollars of assessed value. So, for example, if your home’s assessed value is $100,000, that assessment would translate to an $850 tax bill.

The assessment cap credit and the new 40% floor are two important wrinkles worth noting.

• The assessment cap credit provides that, in most situations, property taxes may not increase by more than 10% from one year to the next. This cap protects taxpayers from booms in the real estate market by spreading out sudden increases in value over time. As a result, your tax bill may increase this year although the value of your home did not. That’s your taxes playing catch-up.
• Additionally, as part of last year’s Budget Support Act, legislation was passed that requires all residents to pay taxes on a minimum of 40% of their home’s assessed value. If through a combination of programs and credits you previously paid taxes on less than 40% of your home’s assessed value, you are one of the 22,000 residents who are affected by this change.

Property tax bills are mailed twice a year: in February and August. By now you should have received the first half of this year’s bill. Payment is due March 31.

The Office of Tax and Revenue’s website, www.taxpayerservicecenter.com, contains a wealth of useful information. Just click on the link marked "Real Property Service Center."

Among the topics covered:

• The appeals process for contesting an assessment
• The District’s many tax relief programs
• Penalties for late payment
• Mailing addresses for returns

Individual Income Tax

The due date for your District individual income tax return is Thursday, April 15. Returns may be filed by mail or electronically, by going to www.taxpayerservicecenter.com, clicking on the link marked "Individual Income Tax Service Center," and following the well-marked links. The Office of Tax and Revenue touts electronic filing as "the best way to file an error-free return and receive an income tax refund faster."

The Individual Income Tax Service Center, found online at www.taxpayerservicecenter.com, has answers to most questions, and covers topics including deductions, tax rates, penalties, and more.

If you need additional assistance, please follow this link and fill out our constituent services form.