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One of the most attractive yet overlooked incentives to buying a home in Washington, DC is the DC Tax Abatement program. This property tax reprieve can mean big, big, BIG savings  to those that qualify... To find out how the DC Tax Abatement could help you buy a new home, contact Rachel Valentino.

The DC Tax Abatement is a five-year exemption from paying property taxes on eligible buyers' homes. As an added bonus, it exempts the buyer from the 1.1% transfer and recording taxes that usually need to be paid at closing. It also allows for a 1.1% credit from the seller, meaning your closing costs can be reduced from around 3% to under 1%!!!

Here, according to DC.UrbanTurf.com, is an example of how the Tax Abatement works: for a $300,000 home, the buyer would save $3,300 in transfer and recording fees, and upwards of $6,600 depending on the transaction. In addition, over the five-year property tax exemption period, the savings would be $9,881.25. Between the exemption on fees at closing and the five-year property tax abatement, the accumulation of savings can be significant.

There are, however, stipulations as to who qualifies for the program as well as purchase price limitations. The purchase price of the home cannot exceed $319,920 and buyers must meet income eligibility requirements. The income limits begin at $53,760 for a single-person household and increase by about $7,680 for each additional person. Other conditions are that the purchase must be for a principle residence and the buyer must be a current DC resident.

Still not sure if your DC home purchase qualifies for the Tax Abatement program? Contact Rachel Valentino and her team of DC-area real estate experts. They can help you determine your eligibility as well as help you file the required paperwork.