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When you buy a home in Washington, D.C., in most cases the city collects a recordation tax from the buyer — 1.1% of the purchase price under $400,000 and 1.45% if the price is above $400,000.
This makes up a big portion of the buyer’s closing costs and is paid up front at closing. But it’s possible to get this tax reduced significantly for those who qualify. The D.C. First-Time Home Buyer Recordation Tax Reduction reduces this to just .725% of the purchase price. That’s some BIG savings!











