Washington, D.C. Transfer & Recordation Taxes
D.C. Council Approves Increase in Transfer and Recordation Taxes
On May 28, 2019, the D.C. Council unanimously approved Mayor Bowser’s $15.5 billion next fiscal year (FY 2020) budget. The Mayor’s budget and financial plan includes a significant increase to transfer and recordation taxes from the current 2.90% to 5.00% on sales of commercial and mixed-use property (or the transfer of a controlling interest in certain entities that own D.C. real property) in excess of $2 million. The new transfer and recordation taxes will become effective October 1, 2019, assuming that Congress does not block the increase before June 28, 2019.
The new 5.00% transfer and recordation tax is significantly higher than Suburban Maryland counties, with Montgomery County under 2.85%, Prince George’s County at 2.45%, and Charles County at 2.00%, as well as Northern Virginia counties, which are at or under 0.58%.
For transfers of property valued over $400,000 and up to $2 million, deed transfer (1.45%) and recordation (1.45%) taxes in Washington will continue to total 2.90% of the purchase price or fair market value of the property. Transfer and recordation taxes are customarily split equally between the buyer and seller.
All information is obtained from sources recognized as reliable but Greysteel makes no guarantees as to the accuracy thereof.
Sources: Greysteel Research; D.C. Council; Goulston & Storrs PC; Kelley Drye & Warren LLP; Stroock & Stroock & Lavan LLP