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How much tax do you pay in DC?

Washington, D.C. residents pay a graduated income tax ranging from 4% to 10.75%, a general sales tax of 6% (rising to 7% in October 2026), and a residential property tax of $0.85 per $100 of assessed value. The exact amount depends on your income, what you buy, and where you live.

Washington, D.C. residents pay a graduated income tax ranging from 4% to 10.75%, a general sales tax of 6% (set to rise to 7% in October 2026), and a residential property tax of $0.85 per $100 of assessed value. The exact amount you owe depends on your income, what you buy, and whether you own property in the District.

Income tax: seven brackets, top rate of 10.75%

DC's income tax has seven brackets with rates of 4%, 6%, 6.5%, 8.5%, 9.25%, 9.75%, and 10.75%. The brackets have not changed since the 2022 tax year. The bottom rate - 4% - applies to your first $10,000 of taxable income. After that, each slice gets taxed progressively higher.

The top rate jumped to 10.75% in 2022, up from 8.95%, and the number of brackets grew from six to seven that same year. The higher rates only kick in for families reporting incomes above $250,000.

The standard deduction for 2025 is $15,000 for single filers. That translates to $15,000 of tax-free income for single DC taxpayers, and $30,000 for those filing jointly.

One significant credit: for tax year 2025, DC's Earned Income Tax Credit equals 100% of the federal EITC amount - a meaningful boost for working families with moderate incomes.

Social Security retirement and Railroad Retirement benefits are tax-exempt in Washington, D.C. Military retirement pay, however, is fully taxable.

The DC Office of Tax and Revenue administers all individual income taxes. File online at otr.cfo.dc.gov. The deadline to submit Tax Year 2024 returns or an extension is April 15, 2025.

Sales tax: 6% general rate, with big exceptions

DC's general sales tax rate remains 6.0% through September 30, 2026, applying to tangible personal property, digital goods, and taxable services. The general rate will increase to 7.0% beginning October 1, 2026.

Several categories carry higher rates, and they matter to daily life in the city:

  • Food or drink served or prepared for immediate consumption - at restaurants, cafeterias, hotel restaurants, carry-out shops, and caterers - is taxed at 10%.
  • Alcohol purchased for off-premises consumption is subject to a 10.25% sales tax.
  • The total sales tax rate on hotel rooms and transient accommodations is 15.95%, extended through September 30, 2027.
  • Parking in commercial lots is taxed at 18%.
  • Tickets to baseball games or baseball-related events at Nationals Park, and tickets to events at Capital One Arena, are taxed at 10.25%.

Groceries for home cooking are exempt. Medicines and residential utilities are also tax-free. Unlike in many states, no local jurisdictions within DC can pile on additional sales taxes, so the rate you see is the rate you pay everywhere in the District.

Property tax: low rate, but high home values

As of 2025, the residential property tax rate in Washington, DC, is $0.85 per $100 of assessed value. That sounds modest. On a $600,000 home, the gross bill before any deductions would be $5,100 per year. But the effective rate for most owner-occupants is lower, once credits are applied.

Due to significant tax reduction programs, owner-occupied properties enjoyed an effective tax rate of $0.68 per $100 of assessed value in tax year 2024.

The Homestead Deduction is available for homeowners living in a principal residence of no more than five units, and it reduces assessed value by $91,950 in 2026. The Senior Citizen or Disabled Property Owner Tax Relief program reduces the property tax bill by 50% for eligible homeowners who are at least 65 years old or disabled.

Homes valued above $2.5 million face a higher rate on the portion above that threshold. Single-family homes and row houses are taxed at $0.85 per $100 on the first $2.5 million in assessed value, and $1.00 on assessed value above $2.5 million. Georgetown has the most properties assessed above $2.5 million - 515 of them, or 20% of its total - while Massachusetts Avenue Heights has the highest share, with 50.7% of all properties in that neighborhood above the threshold.

Commercial properties are taxed at a steeper rate. Even the lowest-value commercial properties (those under $5 million) are taxed at $1.65 per $100 of taxable assessed value - roughly twice the residential rate.

Estate tax

For 2025, DC estates valued over $4,873,200 are subject to the city's estate tax, with rates ranging from 11.2% to 16%. That threshold is well below the federal exemption, which makes DC's estate tax one of the more aggressive in the country for large estates.

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