The District’s Fiscal Year 2016 Budget recently passed with the Council accelerating the Tax Revision Commission’s recommendations to lower taxes in September 2015.
Okay, that’s not the most exciting news in the world, but this could be a big deal for DC residents. What’s the big deal? If a DC taxpayer earn less than $500K, their DC taxes will more than likely decline next year.
Here’s a breakdown of the tax brackets* for the nerds:
* $25-50K = 33% DC tax reduction
* $50K-100K = 16% DC tax reduction
* $100K-200K = 10% DC tax reduction
* $200K-$350K = 5% DC tax reduction
* $350-500K = 2% DC tax reduction
*Numbers are approximations. See a licensed tax professional for exact tax calculations.
Residents earning over $500K will see a slight increase in their taxes paid.
What does that mean for REALTORS®?
More money in residents’ pockets, more money in the economy, and more funds available for housing!
DCAR will continue working to reduce recordation and transfer taxes. Mention the issue to your local elected officials every chance you get!