Washington Opportunity Zones

Washington sits within District of Columbia, which has not filed OZ 2.0 nominations with Treasury yet. The state's governor and economic development office lead the selection. District of Columbia has 69 census tracts eligible under OZ 2.0 — it can nominate up to 25 to Treasury.

69 eligible tracts fall in Washington's constituent county (District of Columbia) per the IRS Rev. Proc. 2026-14 appendix — the same county totals shown on the state page. OZ 2.0's tightened eligibility criteria — median family income at or below 70% of the state/metro reference (down from 80% under OZ 1.0), with the contiguous-tract option eliminated — means fewer Washington neighborhoods qualify than under the 2018 OZ 1.0 map. How states choose OZ 2.0 tracts →

For investors targeting Washington, the OZ 2.0 tax benefits — rolling 5-year deferral, 10% basis step-up (or 30% for Rural QROFs in qualifying rural tracts), and 100% federal-tax-free exclusion of QOF appreciation after a 10-year hold — apply to investments made on or after January 1, 2027. See the full OZ 1.0 vs 2.0 comparison →

What Washington's demographics imply: with a median household income of $101,027 and a 15.5% poverty rate, Washington is likely to keep a meaningful share of Opportunity Zone tracts in higher-poverty census areas, while higher-income neighborhoods that qualified through the contiguous-tract pathway under OZ 1.0 will lose zone status under OZ 2.0.