Housing

District of Columbia Disabled Veterans Homestead Deduction

Takes $445,000 off the assessed value of a District house or condominium you live in if VA has rated you permanently and totally disabled or pays you at the 100 percent rate for unemployability, and your household income is under the limit, $163,500 for tax year 2026. Cooperatives are excluded, and it replaces the ordinary homestead deduction, senior relief and the assessment cap.

Also called: D.C. Code 47-850(a-2), Disabled Veterans Homestead Exemption, veterans homestead deduction, $445,000, $163,500, permanent and total, individual unemployability, Office of Tax and Revenue, ASD-105, D.C. Law 24-167, Class 1A, cooperative.

For: Veteran or service member, survivor.

Where it applies

Written for the jurisdictions listed here.

District of ColumbiaState

This is the District's property tax benefit for disabled veterans. It is a large deduction, not an exemption, and three conditions make it narrower than its name. What it does. D.C. Code 47-850(a-2)(1) tells the Mayor to "deduct from the assessed value of real property that qualifies for the homestead deduction and is owned by a veteran or eligible spouse the amount of $445,000". The figure is fixed in the statute and is not indexed. At the Class 1 residential rate of $0.85 per $100, it is worth up to about $3,783 a year. Who qualifies. Subparagraph (A): a veteran who "has been classified ... by the United States Department of Veterans Affairs as having a total and permanent disability as a result of a service-incurred condition or service-aggravated condition or is paid ... at the 100% disability rating level as a result of unemployability". Two routes. The first is a permanent and total finding, which in practice means a 100 percent rating VA has marked permanent. The second is individual unemployability paid at the 100 percent rate, and on the words it does not need to be permanent. Bring the VA benefit summary letter. The income limit. Subparagraph (B) requires the veteran's household to be an "eligible household" under D.C. Code 47-863(a)(1A)(A), the senior and disabled owner relief, with the age 65 test and the disability test switched off. What is left is ownership of at least 50 percent, a house or condominium of Class 1A or 1B property with no more than five dwelling units, and household adjusted gross income below $125,000 indexed from October 1, 2014. The Office of Tax and Revenue puts the limit for tax year 2026 at $163,500, measured on the whole household's 2024 federal adjusted gross income, excluding tenants paying fair market rent under a written lease. The Mayor's Office of Veterans Affairs application says "for 2026" where the statute and the Office of Tax and Revenue mean the tax year ending before the real property tax year begins. Tax year 2027 began on October 1, 2026 and the limit moves every year, so ask the Office of Tax and Revenue for the current figure. The Army benefits library still prints $159,750, the tax year 2025 figure. Cooperatives are out. Section 47-863(a)(1A) defines an eligible household separately for a house or condominium, in subparagraph (A), and for a cooperative, in subparagraph (B). The deduction borrows only subparagraph (A). The Office of Tax and Revenue says so plainly: "Cooperative properties are not eligible". In a city with many cooperative apartments, that shuts out a real share of disabled veteran owners. It replaces, not adds. Subsection (h)(2): a property receiving this deduction "shall not receive the credit under § 47-864", the 10 percent assessment cap credit, "or the deduction under § 47-863", the 50 percent senior and disabled owner relief, and the Office of Tax and Revenue adds that it also takes the place of the ordinary homestead deduction of $91,950 for tax year 2026. For most veterans the trade is good. But the senior and disabled relief halves the tax, and on these figures a household that also qualifies for it pays less under that relief once the assessment passes roughly $798,000, before counting any cap credit a long-time owner has built up. Section 47-863(a)(1A)(A)(iii)(II) opens that relief to anyone "receiving federal ... government disability payments" under the same income limit, which on its words appears to reach VA compensation, so a veteran over 65 or with a large home should ask the Office of Tax and Revenue to price both before applying. How to apply. Unlike the ordinary homestead deduction, the application goes to the Mayor's Office of Veterans Affairs, which certifies the disability to the Office of Tax and Revenue under paragraph (3). The Office's application is online. An application approved between October 1 and March 31 gets the whole tax year and one approved from April 1 to September 30 gets half, on the second installment, under subsection (c). Active duty members domiciled in the District attach a DD Form 2058. You must be domiciled in the District and live in the home. If the property stops qualifying, file form ASD-105 on MyTax.DC.gov within 30 days, because the Office of Tax and Revenue audits and back-assesses with interest and penalties. How it got here. The Council first enacted a $500,000 version as D.C. Law 22-283 in 2019, subject to funding, and it was never funded; the Code's editor's note still says that amendment "has not been implemented". The Fiscal Year 2023 Budget Support Act, D.C. Law 24-167, enacted the $445,000 version as a second subsection (a-1), applying as of October 1, 2022, and as enacted it said "service-aggregated condition". Three months later an unrelated insurance act, D.C. Law 24-194, renumbered it (a-2) and corrected the word to "service-aggravated", and the Fiscal Year 2026 Budget Support Act, D.C. Law 26-55, fixed the cross-reference in subsection (a) and renumbered the companion subsection from (f) to (h). Papers from 2022 that cite 47-850(a-1) mean this provision. A bill to turn it into a full exemption with no income limit, B26-0476, had a hearing on July 10, 2026 and has not passed; see the tracked legislation.

Thresholds

Thresholds for District of Columbia Disabled Veterans Homestead Deduction
Gate	Rule
Rated 100 percent and permanent and total	D.C. Code 47-850(a-2)(1)(A): "classified ... as having a total and permanent disability as a result of a service-incurred condition or service-aggravated condition".
Permanent and total	D.C. Code 47-850(a-2)(1)(A).
Or paid at the 100 percent rate for unemployability	D.C. Code 47-850(a-2)(1)(A): "is paid ... at the 100% disability rating level as a result of unemployability". The statute does not require unemployability to be permanent.
Household adjusted gross income under $163,500 for tax year 2026	D.C. Code 47-850(a-2)(1)(B) and 47-863(a)(1A)(A)(iii)(I)(bb): $125,000 indexed from October 1, 2014. Figure from the Office of Tax and Revenue for tax year 2026.
A house or condominium you own at least half of and live in, not a cooperative	D.C. Code 47-863(a)(1A)(A): Class 1A or 1B property with no more than five dwelling units; the cooperative definition in subparagraph (B) is not borrowed.

Sources

Legislation

Law the tracker is watching for this entry. See the legislation tracker for every jurisdiction.

Bill 26-476 Would turn the $445,000 veterans homestead deduction into a full exemption with no income limit

Catalog reconciledAwaiting a voteFigure moved Scope changed

Council Period 26, 2025-2026

Introduced Done, 2025-11-14, step 1 of 7
In committee Done, 2026-03-03, step 2 of 7
Passed first reading Next, step 3 of 7
Passed final reading Not yet, step 4 of 7
Signed by the Mayor Not yet, step 5 of 7
Sent to Congress for review Not yet, step 6 of 7
Became law Not yet, step 7 of 7

Expands benefits Would turn the $445,000 deduction into a full exemption, drop the income limit, and add surviving spouses of veterans who died in the line of duty.

Not law. Introduced November 14, 2025, re-referred to the Committee of the Whole in March 2026 and heard on July 10, 2026, with no committee vote. It would exempt the whole assessed value of a qualifying veteran’s homestead, switch off the household income limit, and add surviving spouses of eligible disabled veterans and of veterans who died in the line of duty. The 100 percent permanent and total or unemployability test would stay. Council Period 26 ends on December 31, 2026, and a bill not enacted by then dies. Until then the $445,000 deduction and the income limit, $163,500 for tax year 2026, govern.

Sponsor

Touches D.C. Code § 47-850

Also touches

District of Columbia Veteran Spouse Homestead Deduction

Official record

D.C. Law 26-83 (D.C. Act 26-200, Bill 26-10) Extended the $445,000 veterans homestead deduction to a surviving spouse or domestic partner

Needs reviewEnactedScope changed

Signed 2025-11-24Takes effect 2026-02-03

Introduced Done, 2025-01-03, step 1 of 7
In committee Done, 2025-01-07, step 2 of 7
Passed first reading Done, 2025-10-21, step 3 of 7
Passed final reading Done, 2025-11-04, step 4 of 7
Signed by the Mayor Done, 2025-11-24, step 5 of 7
Sent to Congress for review Done, 2025-12-16, step 6 of 7
Became law Done, 2026-02-03, step 7 of 7

Expands benefits Extends the disabled veterans homestead deduction to a surviving spouse or domestic partner.

Added D.C. Code 47-850(a-2)(4): an eligible spouse is the surviving spouse or domestic partner of a deceased veteran whose property was receiving the deduction at death or would have been eligible had the veteran applied, with the veteran’s disability tested at death and certified by the Office of Veterans Affairs. There is no remarriage condition. Applies as of October 1, 2025; effective February 3, 2026 after Congressional review. Flagged because the Office of Veterans Affairs deduction page and application, where the statute sends applications, still describe only a veteran applicant; the Office of Tax and Revenue’s page does mention the spouse deduction.

Sponsor

Touches D.C. Code § 47-850

Also touches

District of Columbia Veteran Spouse Homestead Deduction

Official record

D.C. Law 24-194, § 3(b) (Credit for Reinsurance Amendment Act of 2022) Renumbered the veterans homestead deduction as 47-850(a-2) and corrected "service-aggregated" to "service-aggravated"

Catalog reconciledEnacted

Signed 2022-10-17Takes effect 2022-12-13

Introduced Done, 2021-10-08, step 1 of 7
In committee Done, 2021-10-19, step 2 of 7
Passed first reading Done, 2022-07-12, step 3 of 7
Passed final reading Done, 2022-09-20, step 4 of 7
Signed by the Mayor Done, 2022-10-17, step 5 of 7
Sent to Congress for review Done, 2022-10-31, step 6 of 7
Became law Done, 2022-12-13, step 7 of 7

No change to benefits Renumbers the veterans deduction and corrects a misprinted word; no figure or gate changes.

An insurance act amended section 7072(b) of the Fiscal Year 2023 Budget Support Act to move the veterans deduction from a second subsection (a-1) to (a-2), and to replace the enacted phrase "service-aggregated condition" with "service-aggravated condition". No figure or gate changed. The Fiscal Year 2026 Budget Support Act, D.C. Law 26-55, § 8008, later fixed the cross-reference in subsection (a) and redesignated the second subsection (f) as (h). A 2022 paper citing 47-850(a-1) refers to the provision now at (a-2).

Sponsor

Touches D.C. Code § 47-850

Official record

D.C. Law 24-167, §§ 7071-7072 (Fiscal Year 2023 Budget Support Act of 2022) Created the $445,000 disabled veterans homestead deduction

Catalog reconciledEnactedProgram created

Signed 2022-07-25Takes effect 2022-09-21

Introduced Done, 2022-03-16, step 1 of 7
In committee Done, 2022-04-05, step 2 of 7
Passed first reading Done, 2022-05-10, step 3 of 7
Passed final reading Done, 2022-06-07, step 4 of 7
Signed by the Mayor Done, 2022-07-25, step 5 of 7
Sent to Congress for review Done, 2022-08-09, step 6 of 7
Became law Done, 2022-09-21, step 7 of 7

Expands benefits Created the $445,000 homestead deduction for a veteran rated totally and permanently disabled or paid at the 100 percent rate.

Subtitle VII-H, the Disabled Veterans Homestead Exemption Amendment Act of 2022, added a deduction of $445,000 from the assessed value of a homestead owned by a veteran classified by VA as having a total and permanent service-connected disability or paid at the 100 percent rate for unemployability, whose household meets the income test for senior and disabled owner relief without its age and disability conditions. The property may not also receive the senior and disabled relief or the assessment cap credit, and applications go to the Office of Veterans Affairs for certification. The act applies as of October 1, 2022 and took effect on September 21, 2022 after Congressional review.

Sponsor

Touches D.C. Code § 47-850 · D.C. Code § 47-863

Official record

D.C. Law 22-283 (D.C. Act 22-611, Bill 22-121) Enacted a $500,000 disabled veterans homestead deduction subject to funding, which was never funded

Catalog reconciledEnacted

Signed 2019-01-30Takes effect 2019-04-11

Introduced Done, 2017-02-21, step 1 of 7
In committee Done, 2017-02-21, step 2 of 7
Passed first reading Done, 2018-12-04, step 3 of 7
Passed final reading Done, 2018-12-18, step 4 of 7
Signed by the Mayor Done, 2019-01-30, step 5 of 7
Sent to Congress for review Done, 2019-02-28, step 6 of 7
Became law Done, 2019-04-11, step 7 of 7

Expands benefits Enacted a $500,000 homestead deduction for a totally disabled veteran, though its funding condition was never met.

Added a first D.C. Code 47-850(a-1) deducting $500,000 of assessed value for a veteran rated permanent and total or paid at the 100 percent rate for unemployability. Section 3 made it apply as of October 1, 2019 or on inclusion of its fiscal effect in an approved budget and financial plan, whichever was later. It was never funded, and the Code’s editor’s note still says the amendment "has not been implemented". The deduction in force is the $445,000 version enacted by D.C. Law 24-167. Tracked because the bill summary on the Council’s record still describes $500,000.

Updated

Last updated 2026-09-30.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.