This year’s new real property tax assessments for tax year (TY) 2026 have been issued. They can be viewed online via MyTaxDC. The good news is that after years of denying that the Washington, D.C. (“DC”) office market was in trouble, the Office of Tax and Revenue (OTR) has finally made an effort to reflect the overall decline and struggles of that market.
Unfortunately, the year-over-year reductions in proposed assessed values for office buildings are not across the board and, in some ways, seem to have been randomly applied. The OTR has lowered office assessments by anywhere from 10 to 30%, on average, but for some sites strangely not at all.
Despite the city’s proactive reductions, it is highly likely that many large office properties are still significantly overassessed. Notably, office buildings that recently sold in arm’s length transactions are being assessed for substantially more than their recent purchase prices, in some cases by more than double. This directly contradicts DC law, which requires that assessments reflect fair market value. There is no better indicator of market value other than a recent arm’s length sale of a property. OTR’s position seems to be that if the reported sale is “too low” then it can be disregarded for the purposes of setting the new assessed value. Such an approach needs to be challenged wherever applied.
The lowered office values do raise concerns that the City Council may raise applicable real property tax rates to offset the negative fiscal impact for TY 2026. Furthermore, in an apparent effort to balance out the commercial tax roll after these office reductions, OTR has increased many hotel assessments drastically by approximately 10 to 20%, while in contrast a minority of hotel owners actually saw their assessments decline because of a perceived change in the OTR’s hotel valuation methodology. Multifamily assessments remained relatively unchanged. Ryan’s DC Property Tax team will continue to analyze the data and how it will impact properties across the District.
With the approaching appeal deadline of April 1, it is crucial for property owners to seek guidance from tax experts who can assist in navigating the appeal process. By doing so, you can ensure your property is not overvalued as well as potentially save on your tax obligations.
We are committed to providing you with the guidance and support throughout the entire appeal process. Do not procrastinate. Safeguard the value and financial health of your property by reaching out to Ryan’s experts today.
TECHNICAL INFORMATION CONTACTS:
Michael Allen
Principal
Ryan
954.740.6240
michael.allen@ryan.com
Shawn Eskow
Principal
Ryan
571.481.9427
shawn.eskow@ryan.com
Cutchin Powell
Principal
Ryan
202.470.3094
cutchin.powell@ryan.com
Grant Steinhauser
Principal
Ryan
202.470.3105
grant.steinhauser@ryan.com
Armand Yannone
Manager
Ryan
571.481.9425
armand.yannone@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.