No. Washington, D.C. is not a no-tax jurisdiction. Residents pay a local income tax ranging from 4% to 10.75%, a 6% sales tax (rising to 7% in October 2026), and a residential property tax of $0.85 per $100 of assessed value. D.C. taxes are among the highest in the DMV region.
In brief
No. Washington, D.C. is not a no-tax jurisdiction. Residents pay a local income tax ranging from 4% to 10.75%, a general sales tax of 6% (scheduled to rise to 7% in October 2026), and a residential property tax of $0.85 per $100 of assessed value. By any measure, D.C. taxes rank among the highest in the DMV region.
DC income tax: seven brackets, top rate of 10.75%
DC's income tax system has seven brackets with rates of 4%, 6%, 6.5%, 8.5%, 9.25%, 9.75%, and 10.75% - the same structure applies to single filers, married filing jointly, married filing separately, and head of household. The top rate jumped in 2022 from 8.95% to 10.75%, and the number of brackets expanded from six to seven at the same time.
Anyone domiciled in the District at any time during the tax year, or who maintains an abode in DC for 183 or more days, is subject to this tax. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly.
Social Security retirement and Railroad Retirement benefits are tax-exempt in Washington, D.C. Military retirement pay, however, is fully taxable.
Sales tax: 6% now, 7% coming in October 2026
DC's general sales tax rate on tangible personal property, digital goods, and taxable services remains 6.0% through September 30, 2026. The rate will increase to 7.0% for periods beginning on and after October 1, 2026. That planned increase was already delayed once - the original jump to 6.5% was pushed back under the Sales Tax Increase Delay Amendment Act of 2025.
Certain categories carry different rates. Alcohol is taxed by type: beer at $0.79 per gallon, distilled spirits at $6.68 per gallon. The hotel and lodging tax runs at 15.95% on gross receipts, extended through September 30, 2027.
Property tax: low rate, high home values
The DC Office of Tax and Revenue sets the residential property tax rate at $0.85 per $100 of assessed value (Class 1A - residential real property, including multifamily). Single-family homes, row houses, and townhouses pay $0.85 on the first $2.5 million in assessed value; anything above $2.5 million is taxed at $1.00 per $100 - a "mansion tax" added in the fiscal year 2025 budget.
The rate looks modest, but DC home prices are not. DC's effective property tax rate is 0.63%, yet the median real estate tax payment still runs about $4,594 annually - well above the national median. After factoring in deductions and credits, the effective rate lands at 0.63%, one of the lowest in the country - and far lower than nearby Baltimore and Philadelphia.
Estate tax
DC has an estate tax that applies to estates valued over $4.873 million in 2025; rates are applied based on the total gross estate. Rates in 2025 range from 11.2% to 16%. That threshold is notably lower than the federal exemption, meaning some estates owe DC tax even if they owe nothing federally.
How DC compares to Virginia and Maryland
Maryland combines state income tax with county or Baltimore City local income taxes, Virginia has state income tax without a local layer, and DC has higher top marginal rates than either state.
Virginia's income tax has a top rate of 5.75% that has remained unchanged for decades, and there is no local income tax anywhere in the state, making the state rate the total state-plus-local income tax burden. Maryland layers a local income tax on top of its state income tax and imposes a top state rate of 6.50% on high earners. DC, at 10.75%, sits above both.
A 2025 Redfin summary using Tax Foundation data lists effective property tax rates of 0.90% in Maryland, 0.77% in Virginia, and 0.61% in DC. So on property, DC actually wins - if you can afford to buy here.
One big exception: reciprocal agreements
If you live in Virginia or Maryland and commute into DC to work, you do not owe DC income tax on your wages. DC has reciprocal tax agreements with both neighboring states, meaning your employer withholds your home state's tax, not DC's. That arrangement covers W-2 wages only - if you run a business or earn self-employment income in DC, talk to a tax professional about your specific exposure.
Bottom line
Washington, D.C. taxes both income and consumption at rates that are at or near the top of the DMV pack. The one area where DC gives residents a genuine break is property tax: at an effective rate of 0.63%, DC's effective property tax rate is among the lowest in the country, partly offset by the Homestead Deduction available to owner-occupants. For income taxes, the math is unambiguous: a DC resident earning $1 million pays a marginal rate of 10.75% to the District alone, before any federal liability.
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Last updated: May 22, 2026
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CAN I KICK IT? screens New Jack City at the Sylvan Theater, Washington Monument, on Aug. 22. (Courtesy SHAOLIN JAZZ)
The live-cinema series CAN I KICK IT? returns to the National Mall this month with what its producers are calling the "Gangsters on the Mall" chapter of their free outdoor summer run. On Saturday, August 22, the SHAOLIN JAZZ production brings the 1991 crime classic New Jack City to the Sylvan Theater at the Washington Monument for a night of film, music, and community under the DC summer sky.
What sets the event apart is the sound. As the film plays, DJ 2-Tone Jones builds an original score in real time, reimagining one of the most iconic crime movies of the ’90s through hip-hop, soul, funk, and more. It is less a movie screening than a live performance built around the film.
The details:
Film: New Jack City (1991), with a live soundtrack by DJ 2-Tone Jones
When: Saturday, August 22 — seating opens at 7:30 p.m. (bring lawn chairs and blankets); film begins at 8:30 p.m.
Where: Sylvan Theater at the Washington Monument, Independence Ave SW & 15th St NW
A parking note from the organizers: expect road closures and restricted parking east of 14th Street NW due to a separate race event in the District. Roads west of 14th Street NW will be accessible and available for parking.
New Jack City is the second of three screenings in this year’s free CAN I KICK IT? outdoor series, which opened with Black Panther at Skyland Town Center and concludes with Scarface at the Lincoln Memorial on September 5. Produced by the Washington, DC-based multimedia arts company SHAOLIN JAZZ, the series has presented more than 150 live cinematic experiences at venues across the country, from Lincoln Center to SXSW.
"I wanted to be able to tell good stories with substance and remove the ‘ego’ out of the art," said Andrew Huang during a recent interview. Now, he’s building his career at the intersection of discipline, creativity and innovation.
Andrew Huang, founder of New Place Studios. (Courtesy photo)
As a Chinese American, Huang was reared with a deep respect for hard work, consistency and excellence. He describes his childhood as "not so affluent" and later attended college to hone his passion for videography. "In college I tried to do something I loved, which was video, but along the way I knew that I had to find a job. And so I thought, ‘what was the low hanging fruit to get to that stable 9 to 5 job?,’" he stated.
Later in life, Huang found himself working for corporations where his creativity was often limited, eventually leading to burnout. "I worked in a corporation for a long time and there were a lot of missing pieces. I wanted to fill in gaps missing in corporate video production," said Huang.
He later described how his upbringing and a mindset of "survival" led him toward a corporate career. However, his desire for balance and authentic storytelling ultimately pushed him to take the entrepreneurial leap.
"I founded a new place where you can create video and film with ‘substance and style,’" said Huang. His desire for work-life balance and passion for storytelling naturally evolved into a small business based in Virginia. With the launch of New Place Studios, the entrepreneur quickly found himself reconnecting with the values that would become the foundation of everything he creates behind the camera.
Huang said being a business owner has allowed him to first embrace himself. While others may see video as simply capturing moments, he sees it as a way to preserve stories that inspire, connect and leave a lasting imprint.
By combining cinematic visuals with cutting-edge production techniques and a keen understanding of branding, Huang helps organizations and individuals communicate their vision with purpose. He said understanding a client’s "why" serves as the compass for delivering the services they need.
One benefit of working with a small business, he said, is that clients get to see the production process unfold through a micro lens while working with the same faces throughout the entire project. "The work feels personal," said Huang.
Huang does not regret leaving behind the flash-over-substance mentality and corporate hustle culture. That does not mean the Asian American entrepreneur has been without challenges in the industry. "It’s relatively hard to find other Asian American creatives or people who would want to work with me in the DMV," said Huang.
He identifies the industry culture in which everyone is trying to blend in, creatives may fear displaying their Asian identity and some feel pressure to adopt an American corporate persona. He also points to what he describes as a level of gatekeeping within the industry. According to the U.S. Small Business Administration’s 2024 statistics, Asian American and Pacific Islander entrepreneurs own more than 3 million businesses and employ 5.2 million people in the United States.
After tapping into organizations such as SCORE, which offers free small business mentorship, New Place Studios has become a trusted creative partner throughout the DMV (Washington, D.C., Maryland and Virginia). The company produces a range of creative services, including commercials, corporate branding, documentaries, film, 2D animation, motion graphics and photography.
For Huang, entrepreneurship has become more than a departure from corporate life. It has given him the freedom to create with intention, build meaningful connections and tell stories that go beyond the surface.
The 2026 CAN I KICK IT? outdoor series. Poster courtesy of SHAOLIN JAZZ.
For three Saturdays this summer, some of Washington’s most familiar public spaces will do something they rarely do after dark: fill up with blankets, lawn chairs, and the sound of a movie being scored live, in real time. CAN I KICK IT?, the traveling “live cinema” series produced by the DC-based multimedia arts company SHAOLIN JAZZ, is bringing a free outdoor run to the city — pairing three era-defining films with an original soundtrack performed on the spot by DJ 2-Tone Jones.
The premise is what sets it apart from a normal screening in the park. Rather than simply pressing play, 2-Tone Jones builds a score as the film unfolds, pulling from hip-hop, soul, funk, jazz, rock, electronic music, and sounds from around the world. The result, the organizers say, is less a movie night than a one-time performance — the same film you know, wired to a soundtrack you have never heard and will not hear again. Guest DJs warm up the crowd starting at 7:30 PM before each 8:30 PM screening.
The 2026 outdoor schedule
All three events are free and open to the public.
Saturday, August 8 — Black Panther at Skyland Town Center. A pop-up marketplace and community activities kick off the evening; guest DJs at 7:30 PM, film at 8:30 PM. Marvel’s superhero epic gets a one-night-only live score in Southeast DC.
Saturday, August 22 — New Jack City at the Sylvan Theater, Washington Monument. Seating begins at 7:30 PM; the film starts at 8:30 PM. The 1991 crime drama plays out at the foot of one of the country’s most recognizable landmarks.
Saturday, September 5 — Scarface at the Lincoln Memorial. Seating at 7:30 PM; film at 8:30 PM. The series closes with Brian De Palma’s crime saga against the backdrop of the Memorial, scored live from start to finish.
First up: Black Panther at Skyland Town Center on August 8. Poster courtesy of SHAOLIN JAZZ.
A DC company with a national footprint
SHAOLIN JAZZ describes itself as a Washington-based arts company working at the intersection of music, film, art, and culture, and CAN I KICK IT? is its signature production. According to the organizers, the series has staged more than 150 live cinematic experiences around the country — at performing arts centers, museums, festivals, and cultural institutions including Lincoln Center in New York, SXSW, the Denver Center for the Performing Arts, Republic Square in Austin, the Tacoma Armory, and The Cary Theater.
“CAN I KICK IT? has always been about creating a shared experience,” said Gerald Watson, co-founder of SHAOLIN JAZZ. “When you combine iconic films with live music in public spaces, something special happens. People aren’t just watching a movie — they’re experiencing it together. That’s what makes these nights so memorable.”
Cinema as a community event
The DC run lands as cities across the country look for new ways to activate public space through arts and culture — and this series is a straightforward pitch for how to do it: take a landmark everyone already knows, add a film everyone has an opinion about, and let a live soundtrack turn the evening into something neighbors experience shoulder to shoulder. Families, film buffs, and music fans are all invited, and admission won’t cost a thing.
The CAN I KICK IT? outdoor series runs August 8, August 22, and September 5. All events are free; check SHAOLIN JAZZ (shaolinjazz.com) for the latest details and any weather updates before heading out.
