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What is the Washington DC tax?

Washington, D.C. taxes residents on income at rates from 4% to 10.75% across seven brackets, charges a general sales tax of 6% (rising to 7% in October 2026), and taxes residential real property at $0.85 per $100 of assessed value. The District functions as both a city and a state for tax purposes.

Washington, D.C. taxes residents on income at rates from 4% to 10.75% across seven brackets, charges a general sales tax of 6% (rising to 7% in October 2026), and taxes residential real property at $0.85 per $100 of assessed value. The District functions as both a city and a state for tax purposes - there is no separate county or city tax layered on top.

Income tax

DC has a progressive income tax system with seven brackets ranging from 4% to 10.75%. The brackets, straight from the DC Office of Tax and Revenue's 2025 Tax Facts report, are:

  • 4% on the first $10,000
  • 6% on $10,001-$40,000
  • 6.5% on $40,001-$60,000
  • 8.5% on $60,001-$250,000
  • 9.25% on $250,001-$500,000
  • 9.75% on $500,001-$1,000,000
  • 10.75% on income above $1,000,000

The DC tax brackets have not changed since the 2022 tax year. What has shifted are the standard deductions. The standard deduction for the 2025 tax year is $15,750 for single filers, and married couples filing jointly can claim $31,500.

To put the brackets in real-dollar terms: on a $100,000 income, a single filer in DC would owe approximately $6,900 in DC income tax - $400 on the first $10,000 at 4%, $1,800 on the next $30,000 at 6%, $1,300 on the next $20,000 at 6.5%, and $3,400 on the remaining $40,000 at 8.5%.

DC's 10.75% top rate ranks third nationally, behind California (13.3%) and Hawaii (11%), but unlike California's top rate which starts at $693,000, DC's applies only above $1 million.

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

For 2025, DC's Earned Income Tax Credit is 100% of the federal credit - a meaningful expansion for lower-income residents.

DC residents pay federal income tax but have no voting representation in Congress, a situation often called 'taxation without representation' - a phrase still printed on DC license plates.

Sales tax

The general sales tax rate on tangible personal property, digital goods, and taxable services remains 6.0% through September 30, 2026. It is scheduled to rise to 7% effective October 1, 2026.

Certain categories carry their own, higher rates. Tickets to baseball games or baseball-related events at Nationals Park, tickets to events at Capital One Arena, and rental vehicles all carry a 10.25% rate.

DC taxes a wider range of services than most states. All tangible personal property and certain selected services sold or rented at retail and delivered in the District are subject to sales tax.

Property tax

All real property in DC, unless expressly exempted, is subject to the real property tax and is assessed at 100% of market value. The rate depends on property class.

Class 1A - residential real property including multifamily - is taxed at $0.85 per $100 of assessed value. Commercial property classified as Class 2 with a total assessed value of $5,000,000 or less carries a tax rate of $1.65 per $100. Commercial properties assessed above $5 million are taxed at $1.77 per $100.

Vacant and blighted properties face steep penalties. Class 3 (vacant) property is taxed at $5.00 per $100 of assessed value, and Class 4 (blighted) property at $10.00 per $100.

If you buy property, there's also a transfer tax to factor in. The recordation tax is 1.1% of the consideration or fair market value for residential transfers under $400,000, and 1.45% of the entire amount when the transfer exceeds $400,000. For first-time homebuyers, the purchase price cap for a reduced recordation tax rate is $777,000 for tax year 2026.

Estate tax

DC is one of a shrinking number of jurisdictions that still levies its own estate tax. For 2025, DC estates valued over $4,873,200 are subject to the city estate tax, with rates ranging from 11.2% to 16%. That includes bank accounts, real estate, automobiles, and investments held by the decedent.

Other taxes worth knowing

As of October 1, 2025, the cigarette tax is $5.07 per pack of 20. Other tobacco products carry a rate of 64% of wholesale sales.

For businesses, the unincorporated business franchise minimum tax is $250 if DC gross receipts are under $1 million, and $1,000 if they exceed $1 million.

For specific filing needs, the DC Office of Tax and Revenue runs a free in-person tax prep service at its customer service center at 1101 4th Street SW, Suite W270. Questions can go to (202) 727-4829 or [email protected].

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