Buying or selling in Dupont Circle and wondering how DC’s transfer and recordation taxes will affect your bottom line? You are not alone. These closing costs are predictable, but they can feel opaque when you are comparing offers or planning your cash to close. In this guide, you will learn what each tax is, who typically pays, how to estimate your numbers, and how DC compares with nearby Maryland and Virginia. Let’s dive in.

Transfer and recordation basics

DC real estate transactions include two common taxes that show up at closing.

• Transfer tax: A tax tied to the transfer of ownership. It is based on the sale price or taxable consideration listed on the deed.
• Recordation tax: A tax charged when recording instruments such as the buyer’s mortgage or deed of trust. It is typically based on the principal amount of the mortgage being recorded.

A title or settlement company calculates these taxes, collects them at closing, and remits payment to the DC Office of Tax and Revenue. Both taxes are applied using the taxable base multiplied by the current rate. Exemptions and special rules can apply in specific situations, so you will want your title company to confirm the details for your transaction.

Why these taxes matter in Dupont Circle

Dupont Circle homes and condos often trade at higher price points. Even a modest percentage can equal several thousand dollars. For buyers, the recordation tax can increase total cash needed at closing. For sellers, the transfer tax can affect net proceeds. Building these numbers into your plan early helps you negotiate with confidence.

Who pays in DC

Local practice often guides who pays, but the purchase contract controls it. Here is what you will commonly see in DC:

• Recordation tax: Typically paid by the buyer when a mortgage is recorded, since the tax is based on the loan amount.
• Transfer tax: Negotiable by contract. It is common for the seller to pay, but market conditions and negotiations can shift responsibility.

Your lender’s Loan Estimate and the title company’s estimate will show these items as line entries. Make sure your contract clearly states who pays each tax or what percentage each party will cover.

Exemptions to check

In certain situations, transactions may be exempt or taxed differently. Examples include transfers between spouses, some parent-child transfers, estates and probates, government transfers, and certain corporate reorganizations. Some affordable housing or first-time buyer programs may offer credits or waivers from time to time. Refinances, partial recordings, or assumed mortgages can also be treated differently. Because programs and rules can change, confirm eligibility with your title company or the DC Office of Tax and Revenue before you rely on a figure.

Estimate your costs

Use this simple framework to estimate closing-cost impact:

1. Gather your inputs.

• Agreed purchase price
• Down payment amount
• Mortgage principal (price minus down payment)
• Any seller concessions or agreed tax allocations

2. Apply current DC rates.

• Transfer tax equals transfer tax rate multiplied by the sale price or taxable consideration
• Recordation tax equals recordation tax rate multiplied by the mortgage amount

3. Add standard fees.

• Recording and filing fees, title charges, and lender costs

4. Build a complete picture.

• Buyers: cash to close equals down payment plus buyer-side closing costs, buyer’s share of transfer and recordation taxes, and prepaid or escrow items
• Sellers: net proceeds equals sale price minus mortgage payoffs, transfer tax if owed, commissions, title fees, outstanding taxes, and other seller-side costs

In the DC region, total buyer closing costs commonly range from about 2 to 5 percent of the purchase price, depending on loan type, fees, and tax allocation. Seller costs can range from around 6 to 10 percent or more of the sale price, with commissions and agreed transfer tax as the largest drivers.

Hypothetical Dupont Circle example

This example is for illustration only. Always verify current rates and your exact numbers with your lender and title company.

• Sale price: 800,000 dollars (Dupont Circle condo)
• Down payment: 20 percent, or 160,000 dollars
• Mortgage: 640,000 dollars
• Assumed example rates only: transfer tax at 1.1 percent and recordation tax at 1.0 percent

Results using those assumptions:

• Transfer tax equals 8,800 dollars
• Recordation tax equals 6,400 dollars

If the seller pays the transfer tax and the buyer pays the recordation tax, the buyer’s cash to close includes the 160,000 dollar down payment plus 6,400 dollars for recordation tax, plus lender, title, and escrow items. If the buyer agrees to pay both taxes, add 8,800 dollars to the buyer’s total. The difference can be meaningful, so write tax allocations clearly into the contract.

DC vs Maryland vs Virginia

• District of Columbia: Citywide rules set by the DC Office of Tax and Revenue. Transfer and recordation taxes are standard line items at closing. Exemptions and credits are DC specific.
• Maryland: The state has base taxes and counties often add their own transfer or recordation surcharges. Montgomery County and Prince George’s County can differ, so you must check the specific county for an apples-to-apples comparison.
• Virginia: Deed and recordation approaches vary by locality. Many Virginia localities have lower overall document taxes than some DC or Maryland combinations, but the exact total depends on the city or county and the structure of your transaction.

If you are comparing a Dupont Circle condo to a similar property in a nearby suburb, keep in mind that local tax structures and county surcharges can shift the final closing costs. Ask your lender and title company for written estimates for each jurisdiction you are considering.

Buyer steps

• Ask your lender for a Loan Estimate and request a separate title estimate that includes transfer and recordation taxes.
• Confirm if you will record a mortgage or pay cash, since that changes recordation tax.
• Decide early how you want to handle tax allocations in your offer so you can move quickly when the right home hits the market.

Seller steps

• Request a seller net sheet that includes transfer tax so you see true proceeds before listing.
• Decide in advance whether paying transfer tax could help your negotiation strategy in today’s market.
• Align timing with your payoff, condo or HOA statements, and any repairs or staging so your closing stays on schedule.

Title company’s role

Your title or settlement company will calculate DC transfer and recordation taxes, collect them at closing, prepare and file the required forms, and remit payment to the DC Office of Tax and Revenue. They also coordinate document recording, payoff logistics, and final settlement statements so you have a clean, accurate closing package.

Next steps

Tax rates and exemptions can change, and every deal has nuances. For a precise estimate, connect with your lender and title company early and get written numbers based on your contract and loan. If you want a strategic plan to maximize your outcome in Dupont Circle or close-in Montgomery County, reach out to the Dana Rice Group. Our team pairs local market expertise with a concierge experience, including complimentary staging for qualifying listings, to make your next move efficient and rewarding.

FAQs

What are DC transfer and recordation taxes on a home purchase?

• They are transaction taxes due at closing, where transfer tax applies to the deed transfer based on price and recordation tax applies when recording a mortgage based on the loan amount.

In Dupont Circle, who typically pays each DC tax?

• Buyers commonly pay recordation tax when taking a mortgage, while transfer tax is negotiable and often paid by the seller, subject to contract terms and market conditions.

How do DC taxes change if I buy with cash and no mortgage?

• Without a mortgage, there may be no mortgage-based recordation tax; you should still expect deed recording fees and transfer tax depending on your contract and any applicable exemptions.

Are there DC exemptions or credits for first-time buyers?

• Some DC programs can reduce or waive taxes for eligible buyers, though availability and specifics change; confirm current options with your title company or the DC Office of Tax and Revenue.

How do DC closing taxes compare to nearby Maryland or Virginia?

• DC uses citywide rates, Maryland layers state and county taxes that vary by county, and Virginia’s totals depend on locality; ask for side-by-side estimates for the exact jurisdiction you are considering.