District of Columbia Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers

The District charges a deed transfer tax of 1.1% on residential sales under $400,000 and 1.45% on the whole price at $400,000 or more. The transferor, the seller, is responsible for it under D.C. Code 47-903. A separate recordation tax at the same rates applies at recording.

What a DC seller pays at closing

DC has two taxes that people often treat as one. The deed transfer tax and the deed recordation tax apply at the same rates, but they are separate taxes, and the statute assigns responsibility for the transfer tax to the seller. Both are due at the time the deed is submitted for recordation.

The Office of Tax and Revenue lists the same rate structure for each tax, based on the value of consideration given for the property. Where there is no consideration, or it is nominal, the tax is based on fair market value.

Transaction	Transfer tax	Recordation tax
Residential, under $400,000	1.1%	1.1%
Residential, $400,000 or more	1.45% on the entire amount	1.45% on the entire amount

The rate at $400,000 and above applies to the whole price, not only the portion above $400,000. D.C. Code 47-903 sets a basic transfer tax rate of 1.1% and adds a further 0.35% except for residential property transferred for less than $400,000, which produces the 1.45% rate. The same statute also notes how the additional revenue is allocated, which matters for budgeting but not for your closing math.

Who pays

Under D.C. Code 47-903(c), the transferor has responsibility for paying the transfer tax. If the transferor does not pay, the transferee is jointly liable. The pages used here do not set a customary allocation for the recordation tax, so check your contract and ask your title company or closing attorney what is customary locally. Do not assume the recordation tax follows the transfer tax. Both come due when the deed is submitted for recording, so expect to see both on the settlement statement.

A worked example on a hypothetical $300,000 sale

Take a hypothetical $300,000 residential sale, which is under the $400,000 threshold.

Transfer tax: 1.1% of $300,000 is $3,300.
Recordation tax: 1.1% of $300,000 is $3,300.

Now a hypothetical $500,000 residential sale, which crosses the threshold.

Transfer tax: 1.45% of $500,000 is $7,250.
Recordation tax: 1.45% of $500,000 is $7,250.

Sale price	Rate	Transfer tax	Recordation tax
$300,000	1.1%	$3,300	$3,300
$400,000	1.45%	$5,800	$5,800
$500,000	1.45%	$7,250	$7,250

Look at the jump at $400,000. A sale at $399,999 pays 1.1%, or about $4,400. A sale at $400,000 pays 1.45% on the whole amount, or $5,800. A $1 increase in price adds roughly $1,400 in tax per tax type.

The other seller costs

Agent commission. Negotiable, and usually the largest cost on a listed sale.
Mortgage payoff. Your remaining balance plus interest through the payoff date.
Prorated property taxes. Settled as of the closing date under your contract. The tax proration calculator can estimate this.
Recording fees. The Office of Tax and Revenue lists $150.00 for deeds of trust and mortgages and $30.00 for all other documents.
Title and settlement fees. These vary by company. Ask for a written estimate. The sources used here do not state whether the District promulgates title insurance rates.

Why investors care

For a flipper, the tax shows up twice: once when you buy and again when you sell. Take a hypothetical $380,000 purchase and a $500,000 resale. The transfer tax on the buy is 1.1% of $380,000, or $4,180, and on the sale it is 1.45% of $500,000, or $7,250. Across the two deeds that is $11,430 in transfer tax alone, before the recordation tax on each deed. Who bears each piece on each side depends on the statute and your contracts, so read both.

The structure of a wholesale deal changes the count. An assignment moves the contract to your end buyer, so the closing runs between the original seller and that buyer. A double close means two closings and two sets of costs: you buy, then you resell, and each deed carries its own transfer and recordation tax on its own price, with two rounds of title and recording charges. Because the rate steps up at $400,000, a double close that straddles the threshold can change the cost sharply. Ask your closing attorney how consideration is reported on each deed.

Investors who buy or sell entity interests should look at the economic interest transfer tax, which the Office of Tax and Revenue lists at 2.9% when certain control and asset thresholds are met. Counsel should review any structure before you rely on it.

For your maximum allowable offer, work backward from the resale price. Subtract rehab, holding costs, both closings, the transfer and recordation tax that you bear on each deed and your target profit.

Check your numbers

Confirm every figure with your title company or closing attorney, since contract terms and exemptions vary. For a quick estimate, the closing cost calculator in Automize CRM lets you enter your own price and fees.

This is general information, not legal or tax advice.

Sources

Rates checked October 24, 2026. General information, not tax or legal advice.

Common questions

What is the DC deed transfer tax rate?

The Office of Tax and Revenue lists 1.1% of consideration or fair market value for residential transfers under $400,000, and 1.45% on the entire amount for transfers of $400,000 or greater. D.C. Code 47-903 sets a 1.1% basic rate plus an additional 0.35% except for residential property under $400,000.

Who pays the transfer tax in DC?

D.C. Code 47-903(c) states the transferor, the seller, is responsible for paying the transfer tax. If the transferor fails to pay, the transferee becomes jointly liable. The recordation tax is a separate tax at the same rates. Confirm who bears it in your contract with your title company.

What is the DC economic interest transfer tax?

The Office of Tax and Revenue lists a 2.9% rate on consideration or fair market value when more than 50% controlling interest transfers and either 80% of the asset owner’s assets are DC real property or 3.50% of gross receipts come from DC property. Investors who sell entity interests should review it with counsel.

What do DC recording fees cost?

The Office of Tax and Revenue lists a $150.00 recording fee for deeds of trust and mortgages and $30.00 for all other documents. These are separate from the transfer and recordation taxes, and your title company will itemize them on the settlement statement.