Closing costs by state
Closing costs in District of Columbia
Closing costs in District of Columbia run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $15,855. District of Columbia charges a state transfer tax of 1.45% deed transfer tax (seller) plus 1.45% deed recordation tax (buyer) on residential sales of $400,000 or more; 1.1% each below $400,000 (D.C. Code §§ 47-903 and 42-1103), about 2.9% of the price, and it is customarily split between buyer and seller.
Last verified ·Sources:code.dccouncil.gov·cfo.dc.gov
The rules
What District of Columbia does differently
- State transfer tax
- 1.45% deed transfer tax (seller) plus 1.45% deed recordation tax (buyer) on residential sales of $400,000 or more; 1.1% each below $400,000 (D.C. Code §§ 47-903 and 42-1103) (about 2.9% of the price at $400,000).
- Who pays it
- Split between buyer and seller.
- County and city add-ons
- None beyond the District itself. First-time District homebuyers may qualify for a reduced 0.725% recordation rate.
- Attorney at closing
- District of Columbia does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- Who pays the owner’s title policy in District of Columbia varies by county or region; it is set by local custom and the contract.
- Notes
- The statute puts the transfer tax on the transferor and, by custom, the buyer pays the recordation tax, so each side pays 1.45% on a $400,000 sale ($5,800 each). Settlement companies or attorneys close.
- code.dccouncil.gov — “except for residential properties transferred for a consideration less than $400,000, an additional tax of .35% is imposed”
- cfo.dc.gov — “1.1 % of consideration or fair market value for residential property transfers less than $400,000 and 1.45%”
Worked example
A $400,000 home in District of Columbia, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax follow District of Columbia’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Transfer tax, buyer’s share (1.45%) | $5,800 |
| Total (3.964% of price) | $15,855 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (1.45%) | $5,800 |
| Total | $30,800 |
Questions
What people ask about District of Columbia
- Who pays the transfer tax in District of Columbia?
- District of Columbia charges a state transfer tax of 1.45% deed transfer tax (seller) plus 1.45% deed recordation tax (buyer) on residential sales of $400,000 or more; 1.1% each below $400,000 (D.C. Code §§ 47-903 and 42-1103), about 2.9% of the price, and it is customarily split between buyer and seller.
- Do you need an attorney to close on a house in District of Columbia?
- District of Columbia does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in District of Columbia?
- Who pays the owner’s title policy in District of Columbia varies by county or region; it is set by local custom and the contract.
- How much are seller closing costs in District of Columbia?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $30,800 for the seller, including $5,800 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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