Selling a home in Washington, D.C., involves managing several different costs, including real estate transfer taxes. These taxes are fees imposed by the government when a property changes ownership. In Washington, D.C., transfer taxes can significantly impact your final proceeds from the sale. Our short guide will explain how these transfer taxes work in Washington, D.C., helping you understand what to expect when selling your property. We’ll cover who is responsible for paying these taxes, the different types of transfer taxes, and potential exemptions. The Federal Trade Commission defines transfer taxes as a tax imposed by state or local governments when the title to a property is transferred from one owner to another. Essentially, when you sell your home and transfer its legal ownership, the government charges a tax on this transaction. The amount you owe in transfer taxes depends on the location of your property, as state, county, and city regulations vary. These taxes, like other forms of taxation, are designed to generate revenue for public services and infrastructure. In Washington, D.C., the responsibility for paying transfer taxes typically falls on both the buyer and the seller. However, the exact terms can be negotiated in the sale contract. Often, it is a shared expense, with each party covering a portion of the total transfer tax amount.What are transfer taxes?
Who pays for transfer taxes?
