Real estate levies in the nation’s capital are based on the assessed market value of residential and commercial properties. This assessed value is determined by the Office of Tax and Revenue and is subject to periodic reassessments. The tax rate is applied to this assessed value to calculate the annual tax liability. For example, a property assessed at $500,000 with a tax rate of 1% would have an annual tax liability of $5,000.
These levies are a vital source of revenue for the District, funding essential public services such as schools, infrastructure, and public safety. They contribute significantly to the city’s budget and play a crucial role in maintaining and improving the quality of life for residents. Historically, property taxation has been a cornerstone of municipal finance in the District, enabling investment in community development and public services.
