That maximum is a ceiling, not a payout. Many people confuse the filing year with the tax year, or assume every eligible resident receives the top figure. This guide covers what the credit is, who qualifies, how the calculation works, how to file, and the mistakes that cost people money.
Key Takeaways
- The verified maximum is $1,425 for tax year 2025, per OTR's October 1, 2025 notice.
- Your actual credit depends on income, housing costs, and filing-unit rules.
- Homeowners and renters can both claim, with some property exclusions.
- OTR labels the filing season "2026 (Tax Year 2025)".
What Is DC Schedule H?
Schedule H is the DC Homeowner and Renter Property Tax Credit. OTR also calls it the Individual Income Property Tax Credit. It helps residents whose property-tax burden is high relative to income. Any credit left after DC tax offsets can be paid or credited to the claimant.
Homeowners and renters
Homeowners use the real property tax shown on their bill. Renters use 20% of qualifying rent as a property-tax equivalent. That 20% is a conversion, not the credit rate.
Rent that doesn't count includes:
- Rental supplements
- Advance rent for another period
- Deposits
- Landlord-provided food or medical-service charges
- Payments for occupancy of DC real-property-tax-exempt property
Schedule H versus other benefits
| Benefit | How it works | Form |
|---|---|---|
| Schedule H | Potentially refundable income-tax credit | Schedule H with D-40, or standalone claim |
| Homestead deduction | Reduces assessed value before property tax is set | ASD-100 |
| Senior or disabled property owner relief | 50% property-tax reduction for owners 65+ or qualifying disability | ASD-100 |
A separate, current program named "Senior Tax Credit" is unconfirmed. Schedule H's higher income limit starts at age 70, while property-owner relief starts at 65. Don't treat them as interchangeable, and don't confuse any of them with federal credits.
Maximum Credit Details for 2026
| Tax year | Maximum | Federal AGI limit | Regular deadline |
|---|---|---|---|
| 2025 (filed in 2026) | $1,425 | $66,000 under 70; $90,000 at 70+ | April 15, 2026 |
| 2026 | Not yet published | Not yet published | Not yet published |
OTR's tax-change notice confirms the 2025 figures. Its forms page labels the current season "2026 (Tax Year 2025)". The instructions are marked revised 11/2025, but a revision date doesn't change the tax year.
What the maximum means
The credit rewards qualifying tax or rent-equivalent that exceeds a share of your income. It is not a flat refund of rent or tax. DC Code sets the burden at 3%, 4%, or 5% of income for non-senior bands and 3% for eligible seniors. Use the worksheet in the official instructions for the exact 2025 band boundaries.
Income is federal adjusted gross income (AGI) from D-40 Line 4, including your spouse or registered domestic partner. Standalone filers work out federal AGI themselves. This is not the same as the gross-income thresholds that decide whether you must file a D-40.
Clarifying "2026"
If you file in 2026, you are claiming the credit for tax year 2025, using 2025 income and housing costs. A form for income earned during 2026 would be filed in 2027, and OTR hasn't published it yet. Check OTR's individual forms page before relying on any 2026 figure.
Who Qualifies for the 2026 DC Schedule H Credit?
Residency and occupancy
DC's program description requires full-year DC residency. The Code requires qualifying ownership or tenancy throughout the calendar year. Filing a part-year D-40 does not by itself establish Schedule H eligibility. Owner or renter status is judged as of December 31.
Homeowners and renters
Homeowners must be the owner of record of a DC principal residence they occupy. OTR asks for the property's square, suffix, and lot. The property must be subject to DC real property tax, so government, house-of-worship, and nonprofit-owned property is excluded.
Renters include lessees, tenants at will, and tenants at sufferance who pay rent. OTR asks for the landlord's name, address, and phone number, plus annual rent. If you rented several homes, use the last rental agreement, divide by its months, and multiply by 12 before applying the 20% conversion.
OTR's FAQ says not to claim after living in public or subsidised housing. The Code speaks more narrowly, to tax-exempt property and rental supplements. If your housing is subsidised, confirm with OTR before claiming.
Income, filing unit, and dependants
- Only one claimant per tax filing unit.
- Roommates aren't automatically combined. Income is measured for the individual or married couple who would file a return.
- Dependants are generally ineligible, unless they are or become 65 during the year.
- People not required to file a DC return can use the standalone claim and must supply included persons' names, TINs, and birthdates.
Eligibility checklist
- Lived in DC for the full tax year
- Owned or rented taxable DC housing on December 31
- Federal AGI at or under $66,000 (under 70) or $90,000 (70+)
- Not claimed as someone else's dependant, unless 65 or older
- Property identifiers or landlord details on hand
Part-year residents, subsidised housing, and expatriate situations are grey areas. DC domicile and 183 days of abode matter for D-40 residency, but Schedule H still requires full-year residency with no special exception. Confirm with OTR or a tax professional.
How Is the Credit Calculated and Claimed?
Information to gather
- Federal AGI, and your spouse or partner's if applicable
- Homeowners: the 2025 real property tax bill, with square, suffix, and lot
- Renters: landlord contact details and annual rent
- Standalone filers: names, TINs, and birthdates of included persons
OTR's instructions list required information. Keep rent and tax records so you can supply attachments if OTR requests them.
The calculation
- Identify income. Use federal AGI from D-40 Line 4.
- Find the property-tax amount. Homeowners use billed tax, excluding interest, penalties, special assessments, service charges, and prior-period taxes. Renters take 20% of qualifying rent.
- Apply the schedule. The credit covers tax exceeding the applicable percentage of income.
- Subtract rental supplements. If they exceed the credit, it drops to zero.
- Cap it. The result can't exceed $1,425 for tax year 2025.
Check the worksheet in the instructions for the official calculation rather than relying on a ballpark figure.
Filing
File Schedule H with your D-40. The 2025 booklet places the property-tax credit on D-40 Line 28. If you have no DC filing obligation, you can file Schedule H on its own. OTR encourages filing through MyTax.DC.gov at no cost, and it lists authorised e-file providers, though fees may apply.
Late claims and amendments
The Schedule H statute allows a three-year claim period starting April 15 after the claim year. The general refund statute uses the later of three years from the due date or from payment. To correct a filed return, complete another D-40, mark the amended-return oval, and attach explanations. Claiming a credit you missed is a different step from fixing an error.
Cross-border questions
DC's tax authority decides eligibility. If you also have broader U.S. or cross-border compliance questions, VJM Global's U.S.-compliant tax professionals can help. VJM Global is not the DC tax authority.
Common Mistakes and Related DC Benefits
Mistakes to avoid
- Using an outdated income limit or maximum
- Confusing the filing year (2026) with the tax year (2025)
- Leaving out landlord details, or square, suffix, and lot
- Entering the wrong federal AGI
- Counting every roommate's income. OTR's tips say household, but the Code and instructions use the tax filing unit
- Skipping record retention
Homestead and senior relief
Schedule H doesn't replace the homestead deduction or senior and disabled relief. ASD-100 expressly allows homestead plus senior or disabled relief together. Confirm with OTR whether you can claim Schedule H alongside homestead or senior relief. Property-benefit application windows (October 1 to March 31 for full-year benefits) are separate from Schedule H deadlines.
Final review
Check the latest instructions for residency, property or landlord details, filing status, signatures, and attachments. After filing, track your refund at MyTax.DC.gov, or call 202-727-4TAX once processing is under way.
Frequently Asked Questions
How much tax credit am I entitled to?
Up to $1,425 for tax year 2025. Your amount depends on income, housing costs, residency, and eligibility rules. Use the official calculation schedule.
What is the income limit to qualify for the DC property tax credit?
For tax year 2025, federal AGI must be $66,000 or less if under 70, or $90,000 or less at 70+. This is federal AGI, not gross income.
Who has to file a DC tax return?
For 2025, single and dependent filers must file with gross income of $15,000 or more, married filers at $30,000, and head of household at $22,500. You can claim Schedule H on its own even if you do not need to file.
What is the DC Tax Credit program?
Schedule H is DC's homeowner and renter property-tax relief credit. It differs from federal credits and from DC's homestead and senior property-tax relief.
Who is eligible for the DC homestead deduction?
It's a separate homeowner benefit for owner-occupied principal residences with no more than five dwelling units. Apply with ASD-100 through MyTax.DC.gov.
What is the DC Senior Tax Credit?
A credit under that exact name is unconfirmed. The related benefit is senior property-tax relief: a 50% reduction for owners 65 or older, with a household-income test, claimed on ASD-100.
