Tax Foreclosure in the District of Columbia: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
The District of Columbia uses a tax lien system. DC sells tax liens on properties with delinquent real property taxes, and the lien purchaser can eventually foreclose if the homeowner does not pay.
How It Works
Real property taxes in DC are collected by the Office of Tax and Revenue (OTR). Under DC Code § 47-1331 et seq., when taxes are delinquent, OTR sells tax liens at an annual public auction. The buyer pays the delinquent taxes and receives a tax lien certificate.
The lien holder earns interest on the delinquent amount. If the homeowner does not pay, the lien holder can file a foreclosure action in DC Superior Court after the statutory waiting period.
Redemption Period
Under DC Code § 47-1370 et seq., the homeowner has a right of redemption. For owner-occupied residential properties, the redemption period is 6 months from the date the foreclosure complaint is filed. During this period, the homeowner can pay all delinquent taxes, interest, penalties, and costs to redeem the property.
DC has enacted additional protections for certain homeowners — see below.
Key Programs and Exemptions
Homestead Deduction: Under DC Code § 47-850, owner-occupants can reduce their property's assessed value by a set amount (check OTR for the current deduction). This significantly reduces the tax bill. You must file a homestead application with OTR.
Senior/Disabled Tax Relief: Under DC Code § 47-863, seniors (65+) and disabled homeowners with income below certain thresholds may qualify for a 50% reduction in property taxes. Apply through OTR.
Tax Sale Protection for Vulnerable Homeowners: DC has enacted protections that may exempt certain owner-occupied properties from the tax sale, including properties owned by seniors, disabled persons, and low-income homeowners. Contact OTR or a legal aid attorney to determine whether protections apply to your situation.
Where to Get Help
- Legal Aid Society of the District of Columbia: Free legal help for low-income DC residents. Call (202) 628-1161 or visit legalaiddc.org.
- Neighborhood Legal Services Program: Call (202) 832-6577 or visit nlsp.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
If you are behind on property taxes in DC, contact the Office of Tax and Revenue immediately. Ask about the homestead deduction and any tax relief programs you may qualify for.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with DC's Office of Tax and Revenue or a licensed attorney. AuctionBlock.org is a mission-driven company.