By Marc Dosik, a real estate broker licensed in DC, Maryland, and Virginia (Fed City Team at Real Broker LLC), with an office at 843 Upshur Street NW in Petworth, Washington DC.

The short answer: your seller net is not the sale price minus one fee. A useful Washington, DC net sheet starts with the expected sale price, adds any credits or reimbursements due to the seller, and subtracts the mortgage and HELOC payoff, DC deed transfer tax, negotiated brokerage compensation, seller concessions, settlement charges, seller debits, property-specific obligations, any applicable withholding or reserves, and preparation costs paid or reimbursed at closing.

For an ordinary residential transfer, DC currently charges deed transfer tax at 1.1% when the consideration is under $400,000 and 1.45% on the entire amount when the consideration is $400,000 or more. That tax is one important line, but it is not the whole closing statement, and sellers should not automatically subtract both transfer and recordation tax.

District tax, recording, settlement, and federal consumer sources were last verified August 19, 2026.

What closing costs should a DC seller put on a net sheet?

Start with the costs that can be verified for your transaction. Do not use a universal closing-cost percentage when the actual documents can produce a better answer.

Your first estimate can be preliminary. It should become more precise after the listing agreement is signed, again after a contract is ratified, and once the title company has payoff statements and a preliminary settlement statement.

How much is the DC deed transfer tax for a home seller?

The DC Recorder of Deeds lists the current ordinary residential deed transfer rates:

DC Code section 47-903 imposes the transfer tax on the transferor and adds 0.35% to the base 1.1% rate except for residential property transferred for less than $400,000. The result is the current 1.45% rate at and above the threshold.

Here is the ordinary residential transfer-tax math, assuming the transfer is taxable, the stated price is the correct tax basis, and no exemption or special rule applies:

The $400,000 line matters because the 1.45% rate applies to the full amount once the threshold is reached. These examples do not include deed recordation tax, brokerage compensation, loan payoff, credits, or any other cost.

When consideration is absent or nominal, DC may use fair market value instead. The Recorder of Deeds describes consideration below 30% of fair market value as nominal. Family transfers, estate distributions, trusts, cooperatives, mixed-use property, entity interests, and claimed exemptions can follow different rules or require additional documentation. Have the title company or closing attorney confirm the deed, taxable basis, rate, return, and exemption documents before relying on an estimate.

Does a DC seller also pay deed recordation tax?

Do not simply double the transfer-tax estimate.

Deed transfer tax and deed recordation tax are separate charges. DC Code section 47-903 places responsibility for transfer tax on the transferor, usually the seller, and makes the transferee jointly and severally liable if the transferor does not pay. DC Code section 42-1103 makes the parties to a deed jointly and severally liable for recordation tax. The purchase contract and settlement statement allocate the economic cost between the parties, but they do not change statutory liability to the District.

For an initial seller net sheet, include the deed transfer tax. Add deed recordation tax only if the contract, title company, or closing attorney says the seller is paying some or all of it. This keeps the worksheet from overstating seller costs by treating two similar tax rates as one automatic seller obligation.

How do you calculate estimated cash to the seller?

That estimate is before final income or capital-gains tax liability. It is also not final until the title company or closing attorney produces the settlement statement.

The local package includes a spreadsheet-ready worksheet with the same categories and ordinary residential transfer-tax formula. It is a planning tool, not a substitute for the settlement statement.

Certain transactions require another line. The IRS FIRPTA guidance explains that withholding can apply when a foreign person disposes of a US real property interest. Withholding reduces the cash released at settlement, but it is not necessarily the seller's final tax liability. A potentially affected seller should have the settlement agent, closing attorney, and a qualified tax professional determine the correct amount and filing steps.

Why is the mortgage payoff higher than the balance on your statement?

The Consumer Financial Protection Bureau explains that a mortgage payoff is different from the current balance. A payoff can include interest through the planned payment date, unpaid charges, and a prepayment penalty if the loan permits one.

Request payoff statements for every mortgage, HELOC, or other loan secured by the property. Use a date that covers the expected settlement and ask how the figure changes if closing moves. A stale balance can make an otherwise careful net sheet wrong.

Which costs change after you accept an offer?

Several important numbers are offer-specific:

1. Seller concessions or credits to the buyer. The buyer may ask the seller to contribute toward allowed closing costs or another negotiated item.
2. Repair or walk-through credits. Inspection negotiations or final walk-through issues can change the amount paid at settlement.
3. Buyer-broker compensation paid by the seller. Use the amount in the signed contract, not an assumed market percentage.
4. Tax and association prorations. The settlement date, billing periods, condominium or cooperative documents, and current account balances affect the line items.
5. Title requirements. Liens, judgments, missing releases, estate authority, entity documents, or other title issues may require payment, escrow, or legal work.

The CFPB seller-transaction disclosure rule identifies seller-side categories including sale price, closing costs, existing loan payoffs, seller-to-buyer credits, taxes, assessments, and other amounts due. Your transaction may use a different settlement form, but the planning discipline is the same: every adjustment should have a document behind it.

Are seller net proceeds the same as taxable profit?

No. Cash at settlement and taxable gain answer different questions.

Your seller net sheet estimates the money left after transaction deductions and loan payoffs. A mortgage payoff reduces the cash you receive, but it is not how taxable gain is calculated. IRS Publication 523 explains the federal framework using amount realized, selling expenses, adjusted basis, and applicable exclusions.

Do not estimate capital-gains tax by applying a tax rate to the check you expect at settlement. Ownership history, improvements, depreciation, rental or business use, inherited-property basis, and eligibility for a main-home exclusion can change the answer. Give the contract, settlement statement, improvement records, prior closing documents, and relevant tax history to a qualified tax professional.

What changes for an inherited, short-sale, condo, or entity-owned property?

The ordinary seller net sheet is a starting point, not a universal closing statement.

• Inherited or estate-owned home: authority, title, estate administration, basis, and the form of the deed may add questions. A no-additional-consideration distribution to an heir is not the same transaction as a later arm's-length sale. Use our DC inherited-house guide for the probate-sale framework.
• Short sale: the lender's approval and payoff treatment can control which costs and credits are permitted. Start with our DC short-sale guide.
• Condominium or cooperative: resale packages, move fees, assessments, underlying obligations, cooperative transfer rules, and settlement requirements can add line items.
• Mixed-use, commercial, trust, or entity-owned property: tax rates, economic-interest rules, authority, exemptions, and documentation can differ from an ordinary residential deed. Use title and legal counsel before calculating the tax.
• Property needing work: keep the detailed repair decision in the DC as-is selling guide, then bring the approved preparation amount back to this net sheet.

How can Fed City Team help you compare the numbers?

Before you choose a list price, repair plan, or offer, ask for a written seller net sheet with every assumption labeled.

Fed City Team can prepare a current market analysis, compare the property's present condition with a defined preparation plan, estimate the ordinary transfer tax, and organize the transaction inputs for the title company or closing attorney to confirm. If a qualifying seller uses Fed City Team's preparation program, the approved reimbursement from sale proceeds belongs on the net sheet too. Eligibility, scope, budget, repayment terms, and the plan if the home does not close must be agreed in writing before work begins.

The goal is not to promise an exact check before the documents exist. It is to show which number is verified, which is negotiated, which is estimated, and what could still change.

Frequently asked questions about DC seller closing costs

What is the DC deed transfer tax rate for a home sale?

For ordinary residential transfers, DC currently charges 1.1% when consideration is under $400,000 and 1.45% on the entire amount when it is $400,000 or more. If consideration is nominal or absent, fair market value may apply. Exemptions and special transfers should be confirmed with the title company or closing attorney.

Does a DC seller pay both transfer tax and recordation tax?

Do not assume both are seller costs. DC law makes the transferor, usually the seller, responsible for transfer tax and makes the transferee jointly liable if it is unpaid. It makes the deed parties jointly liable for recordation tax. The contract allocates the economic cost, not statutory liability to DC. Budget transfer tax first, then add recordation tax only if the transaction documents assign some or all of its cost to the seller.

How much is DC transfer tax on a $750,000 home sale?

At the current 1.45% rate, the deed transfer tax is $10,875 on a $750,000 ordinary residential transfer, before any exemption or special rule. That calculation does not include recordation tax, brokerage compensation, loan payoff, credits, or other closing charges.

Is my mortgage balance the same as the payoff amount?

Not necessarily. The payoff amount can include interest through the payoff date, unpaid charges, and a permitted prepayment penalty. Request a written payoff statement for the planned settlement date instead of relying on the balance shown on a monthly statement.

Are real estate commissions fixed in Washington, DC?

No. Brokerage compensation is negotiable. Use the compensation in the signed brokerage agreement and any seller-paid buyer-broker amount in the purchase contract rather than a fixed percentage or a claimed standard rate.

Are seller net proceeds the same as taxable profit?

No. Net proceeds estimate the cash left at settlement after transaction deductions and loan payoffs. Taxable gain uses a separate calculation involving amount realized, selling expenses, adjusted basis, and any applicable exclusion. Ask a qualified tax professional to calculate it from your records.

When should a seller net sheet be updated?

Update it before listing, after the brokerage agreement is signed, after an offer is accepted, when payoff statements arrive, and when the preliminary settlement statement is issued. The final settlement statement controls the actual disbursement.

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Related guides: How to Sell a House As-Is in Washington, DC · Selling an Inherited House in Washington, DC · How to Sell Your House in a Short Sale in Washington, DC.

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Disclaimer: Closing costs, transfer and recordation taxes, exemptions, taxable basis, contract allocations, compensation, credits, payoffs, prorations, liens, withholding, reserves, title requirements, settlement charges, preparation costs, and tax consequences vary by property and transaction and can change. This article is general information, not legal, tax, financial, title, lending, accounting, or investment advice. Confirm the deed, tax treatment, contract allocation, title requirements, and final figures with the title company or closing attorney. Confirm tax consequences with a qualified tax professional. Exact Fed City Team preparation-program terms must be agreed in writing before work begins.