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$445,000 Off the Assessment — and It Survives the Veteran

$445,000 comes off the assessed value of the home — for total and permanent service-incurred disability or 100% via unemployability — under a household income cap. It does not end with the veteran: D.C. Code §47-850(a-2) extends the same deduction to a surviving spouse or domestic partner where the property was receiving it, or would have been eligible for it, at death.

Verified August 27, 2026

What this benefit is

$445,000 comes off the assessed value of the home — for total and permanent service-incurred disability or 100% via unemployability — under a household income cap. It does not end with the veteran: D.C. Code §47-850(a-2) extends the same deduction to a surviving spouse or domestic partner where the property was receiving it, or would have been eligible for it, at death.

What it's worth: $445,000 deducted from assessed value

  • Total household federal adjusted gross income for 2024 must be below $163,500 for tax year 2026. The threshold adjusts annually.
  • D.C. Code §47-850(a-2) extends the deduction to an 'eligible spouse': the surviving spouse or domestic partner of a deceased veteran whose property was receiving the deduction at death, or would have been eligible for it.
  • The property cannot take this deduction at the same time as the ordinary Homestead Deduction, Senior/Disabled Tax Relief, or the Assessment Cap Credit. Work out which is worth more before switching — this one usually is, but not always.
  • An active-duty member establishing District domicile does so through DD Form 2058.
  • The application is filed with the Office of Veterans Affairs, which certifies it to the Office of Tax and Revenue. It does not go to OTR directly.

Who is entitled to it

  • You meet the permanent and total test.
  • You own and occupy the home.
  • Your home is in this state.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

  1. 1File between October 1 and March 31 to take the deduction for the whole tax year — later filings get the half-year.
  2. 2Check the income cap before applying; this is one of the few veteran property reliefs anywhere with one.
  3. 3You must own at least half the property and be domiciled in the District, in a building of five or fewer units.
Form
Disabled Veterans Homestead Deduction application
File with
The Mayor's Office of Veterans Affairs / Office of Tax and Revenue
Documents you will need
va benefit summary letter
No renewal
Once granted it does not need renewing.
CorrectionUnlike almost every state exemption in this corpus, this one is income-capped — a high-earning 100% veteran can be refused. Check the current Senior/Disabled threshold before planning around it.
Worth knowingIt cannot be stacked with Senior Citizen/Disabled Tax Relief or the tax cap credit, and cooperatives are excluded.

Sources

Why only one source type: The Office of Tax and Revenue release states the deduction, the routes, the income cap and the filing windows in terms.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.