What sellers pay at closing in Washington, DC
DC's deed transfer tax, the $400,000 line, how the recordation tax is handled, and the other costs that come out of your proceeds.
No obligation. No pressure. Takes about 2 minutes.
The short answer
In DC the seller pays the deed transfer tax: 1.1% of the price, or 1.45% for a home that sells for $400,000 or more. DC also charges a recordation tax at the same rates, and the law makes both parties liable for it, so your contract decides who pays. Your mortgage payoff, your share of property taxes and any agent commission you negotiated also come out of your side.
Step by step
-
1
Transfer tax is the seller's
DC Code § 47-903 puts the transfer tax on the transferor, the seller, at 1.1% of the price. An extra 0.35% applies unless the home is residential and sells for less than $400,000, so a $500,000 sale is taxed at 1.45%, or $7,250.
-
2
Recordation tax: the contract decides
DC Code § 42-1103 taxes the deed at 1.1%, plus 0.35% for a residential sale of $400,000 or more. The law says the parties to the deed are jointly and severally liable, so who pays is set in your contract.
-
3
First-time DC buyers pay a lower recordation rate
For an eligible first-time DC homebuyer, § 42-1103 reduces the recordation rate on the deed to 0.725%. That changes the recordation line, not your transfer tax.
-
4
Payoffs, prorations and commission
Your mortgage and any liens are paid off from the proceeds, and property taxes are split for the days each side owns the home. If you list, the commission is negotiated; NAR says agent compensation remains fully negotiable.
Sources: Code of the District of Columbia § 47-903 · Code of the District of Columbia § 42-1103 · National Association of REALTORS, Home Sellers: Here's What the NAR Settlement Means for You
This is general information, not legal or tax advice. Rates and rules change; confirm the numbers for your sale with your settlement agent, an attorney or a tax professional.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
When we show the cash offer next to what listing could net, we list DC's transfer tax and other costs line by line and who pays each.
Frequently asked questions
How much is the transfer tax when I sell in DC?
It is 1.1% of the price, or 1.45% if the home is residential and sells for $400,000 or more. The seller pays it.
Who pays DC's recordation tax?
DC law makes both parties to the deed liable for it, so your contract sets who pays. The rate is 1.1%, or 1.45% for a residential sale of $400,000 or more.
Is there a commission on a cash sale?
Not with us. If you list with an agent, the commission is whatever you negotiate. On a cash sale to us there are no fees or commissions.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.