District of Columbia Closing Costs for Buyers: How Much You'll Pay
In District of Columbia, the state transfer tax is 1.45% (about $9,809 on a $676,500 home), and an owner's title policy runs about $4,196 plus $150 for the lender's policy. Figures below come from District of Columbia statutes, the state's revenue and insurance regulators and filed title rate cards, read on September 11, 2026.
Transfer tax in District of Columbia
| Jurisdiction | Rate | |
|---|---|---|
| District of Columbia (state) | DC has TWO parallel real-property levies at closing, both under D.C. | source |
More on District of Columbia (state)
DC has TWO parallel real-property levies at closing, both under D.C. Code Title 47/42: the Transfer Tax (D.C. Code Sec. 47-903, paid by the SELLER/transferor) and the Recordation Tax (D.C. Code Sec. 42-1103, paid by the BUYER/transferee). Each is 1.1% of consideration, PLUS an additional 0.35% on any deed for consideration of $400,000 or more, so each tax is 1.1% under $400,000 and 1.45% at $400,000 and above. At the District's median price ($676,500, above the $400,000 threshold), both the transfer tax and the recordation tax are 1.45%, for a combined 2.9% of price paid across buyer and seller.
Recordation tax (buyer-paid, D.C. Code Sec. 42-1103): 1.1% of consideration, plus an additional 0.35% for consideration of $400,000 or more (so 1.45% total at/above $400,000). A qualifying first-time DC homebuyer's recordation tax rate is reduced to 0.725% (regardless of price tier) under D.C. Code Sec. 42-1103(e), if the buyer is a bona fide DC resident, certifies first-time-homebuyer status, has combined household federal AGI no higher than 180% of Area Median Income, and files a homestead deduction application for the property.
Who pays: Split by tax, not negotiated: the transfer tax is statutorily imposed on the transferor/seller (D.C. Code Sec. 47-903(a)(1) and (c)); the recordation tax is imposed on the transferee/buyer as a practical matter, with the parties to the deed jointly and severally liable (D.C. Code Sec. 42-1103(c)). This is the DC-specific mirror-tax structure, distinct from most states' single transfer tax. Source
Worked example: On a $676,500 home in DC (above the $400,000 threshold, so the 1.45% rate applies to both taxes): the buyer's recordation tax is about $9,809 (1.45%) and the seller's transfer tax is about $9,809 (1.45%), for roughly $19,618 combined. A qualifying first-time DC homebuyer's recordation tax drops to 0.725% of price, about $4,905, a savings of about $4,904 versus the standard rate.
How much is title insurance in District of Columbia?
On a $676,500 home in District of Columbia, an owner's title policy costs about $4,196 and the lender's policy about $150 when both are issued together (the simultaneous-issue discount). The buyer customarily pays for the owner's policy and the lender's policy. District of Columbia is a filed-competitive state: each title insurer files its own rates, so premiums differ by company and it pays to get two quotes. Premiums computed from First American Title Fee Calculator (filed rates), District of Columbia, District of Columbia, read September 11, 2026.
Who pays the owner's policy: buyer (First American's calculator default allocation for District of Columbia; negotiable by contract) Source
Owner's policy on the full $676,500 price and the lender's policy on an 80% loan ($541,200), quoted together so the simultaneous-issue rate applies; First American filed rates for District of Columbia.
District of Columbia-specific buyer costs on a $676,500 home
These are the line items set by District of Columbia law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.
| Transfer or recordation tax (buyer share) | $9,809 |
|---|---|
| Owner's title policy | $4,196 |
| Lender's title policy | $150 |
| State-set items, total | $14,155 |
Other District of Columbia specifics
- DC first-time homebuyer reduced recordation tax rate. Reduces the buyer's recordation tax from 1.45% (or 1.1% under $400,000) to a flat 0.725% of consideration for a deed of title, for a bona fide DC-resident first-time homebuyer whose household federal AGI is no higher than 180% of Area Median Income, provided a homestead deduction application is filed with the deed. The full benefit must be passed to the buyer per the settlement statement/closing disclosure. Source
- DC Recorder of Deeds per-document surcharge. A flat $5 surcharge per document is charged before any document is accepted for recordation, in addition to the base recording fee, under D.C. Code Sec. 42-1211 (funds the Recorder of Deeds Automation Improvement Fund under Sec. 42-1214). Source
How much are closing costs in District of Columbia?
For a buyer, closing costs usually run 2% to 5% of the purchase price. On District of Columbia's median-priced home (about $676,500), that is roughly $13,530 to $33,825, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.
What closing costs include
Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any District of Columbia transfer tax, plus prepaid property taxes and homeowners insurance.
Why District of Columbia closing costs vary
The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter. Measured in dollars, the District of Columbia has among the highest average closing costs in the country, driven by transfer and recordation taxes on the sale.
How a rebate offsets District of Columbia closing costs
Buyer commission rebates are legal in District of Columbia. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $676,500 home, a 2% rebate is about $13,530, often enough to cover much of the closing bill.
Frequently asked questions
How much is title insurance in District of Columbia?
About $4,196 for an owner's policy on a $676,500 home, plus about $150 for the lender's policy when both are issued together. Rates vary by insurer, so get two quotes.
Who pays closing costs in District of Columbia?
Transfer tax: Split by tax, not negotiated: the transfer tax is statutorily imposed on the transferor/seller (D.C. Code Sec. 47-903(a)(1) and (c)); the recordation tax is imposed on the transferee/buyer as a practical matter, with the parties to the deed jointly and severally liable (D.C. Code Sec. 42-1103(c)). This is the DC-specific mirror-tax structure, distinct from most states' single transfer tax. The buyer customarily pays for the owner's policy and the lender's policy, plus lender fees, appraisal and prepaid taxes and insurance. Sellers often cover part of the buyer's costs through a negotiated concession.
How much is the transfer tax in District of Columbia?
DC has TWO parallel real-property levies at closing, both under D.C. Code Title 47/42: the Transfer Tax (D.C. Code Sec. 47-903, paid by the SELLER/transferor) and the Recordation Tax (D.C. Code Sec. 42-1103, paid by the BUYER/transferee). Each is 1.1% of consideration, PLUS an additional 0.35% on any deed for consideration of $400,000 or more, so each tax is 1.1% under $400,000 and 1.45% at $400,000 and above. At the District's median price ($676,500, above the $400,000 threshold), both the transfer tax and the recordation tax are 1.45%, for a combined 2.9% of price paid across buyer and seller.. On a $676,500 home that is about $19,618, of which the buyer's customary share is about $9,809.
How much are closing costs in District of Columbia?
Buyer closing costs in District of Columbia typically run 2% to 5% of the purchase price. On District of Columbia's median-priced home (about $676,500) that is roughly $13,530 to $33,825, on top of your down payment.
What do closing costs include in District of Columbia?
Lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any District of Columbia transfer tax, plus prepaid property taxes and homeowners insurance.
Can a buyer rebate offset closing costs in District of Columbia?
Often yes. In District of Columbia, buyer commission rebates are legal, and a rebate can be applied as a credit toward your closing costs at the settlement table.
Sources
- District of Columbia transfer tax statute
- Who pays the transfer tax
- First American Title Fee Calculator (filed rates), District of Columbia, District of Columbia, read September 11, 2026
- DC Recorder of Deeds (Office of Tax and Revenue) recording fees
- DC Recorder of Deeds per-document surcharge
- Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price
District of Columbia figures last verified against official sources on September 11, 2026.
District of Columbia title insurance at every purchase price, with a calculator →
District of Columbia transfer tax at every purchase price, who pays and local surcharges →
Read the full buyer closing-costs guide →
Figures are typical 2026 ranges and vary by lender, loan, and location. This is general information, not financial advice; confirm your numbers with your lender and closing agent.
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