Did you know… that DC residents earning less than $500,000 will likely see a decrease in the taxes they pay to the District?
On September 14, 2011, the D.C. Council authorized the District of Columbia Tax Revision Commission and charged it with analyzing the District’s tax system to improve fairness, broaden the tax base, increase the District’s competitiveness, encourage business and employment growth, and promote simplification. The Commission released its findings and recommendations in May 2014. (See the Commission’s report here). Among the Commission’s recommendations was a reduction to individual income tax for District residents. Initially, only a reduction to the District’s most needy residents went into effect, with the other reductions scheduled to take effect in February of 2016 for tax year 2017. The Council has now accelerated the effective date of the other reductions to September 2015 for tax year 2016.
Income earners can expect the following reductions:
Those earning $25-50K will see their income taxes reduced by a third;
Those earning $50K-100K will see a 16% reduction;
Those earning $100K-200K will see a 10% reduction;
Those earning $200K-$350K will see a 5% reduction; and
Those earning $350-500K will pay 2% less.
This not only means that more money will remain in the pockets of DC residents, but that the District will become a more competitive residential option with the surrounding jurisdictions.
For more information regarding our Residential Real Estate Settlements Group or our general real estate transactions and litigation practice, please contact the Group Chair at 301-230-6574 or email@example.com.
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.
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