Washington DC taxes explained: income, sales, and property rates for 2025
Washington, D.C. is not a state, but it levies its own income, sales, and property taxes. For 2025, the District's income tax runs from 4% to 10.75% depending on earnings. The general sales tax is 6%, and residential property is taxed at $0.85 per $100 of assessed value.
In brief
Washington, D.C. is not a state, but it levies its own income, sales, and property taxes. For 2025, District income tax runs from 4% on the first $10,000 of taxable income all the way to 10.75% on income above $1 million. The general sales tax is 6%, and residential property is taxed at $0.85 per $100 of assessed value.
First, a quick clarification
People searching "DC state tax" are really asking about the taxes the District of Columbia imposes on residents, workers, and property owners. D.C. functions like a state for tax purposes. All of its tax administration runs through the DC Office of Tax and Revenue (OTR), reachable at (202) 727-4TAX.
Income tax
The District of Columbia has a graduated individual income tax, with rates ranging from 4.00% to 10.75%. There are seven brackets. For tax year 2025 the rates 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; and 10.75% on income above $1,000,000.
The DC tax brackets have not changed since the 2022 tax year. What has changed are the standard deductions. The standard deduction for tax year 2025 translates to $15,000 of tax-free income for single DC taxpayers, and $30,000 for those filing jointly.
An individual who is domiciled in the District at any time during the tax year, or who maintains an abode in the District for 183 or more days during the year, is subject to DC income tax. The annual filing deadline aligns with the federal calendar. The deadline to submit Tax Year 2024 individual income tax returns or an extension was April 15, 2025.
One notable benefit for 2025: the amount of the DC Earned Income Tax Credit (EITC) allowed increased to 100% of the federal credit.
Social Security retirement and Railroad Retirement benefits are tax-exempt in Washington D.C. However, military retirement pay is fully taxable.
Sales tax
The general sales tax rate on gross receipts from the sale of tangible personal property, digital goods, and taxable services remains 6.0% through September 30, 2026. The general sales tax rate will increase to 7.0% for periods beginning on and after October 1, 2026.
There is no separate city or county sales tax on top of that. Unlike many other states, local jurisdictions in DC cannot levy additional taxes, which simplifies compliance compared to areas with varying local sales tax rates.
Several categories carry their own rates. The hotel surtax - charged on the gross receipts from rooms, lodgings, or accommodations furnished to a transient - sits at 15.95% and is extended through September 30, 2027. Alcohol is handled separately: beer is taxed at $0.79 per gallon and distilled spirits at $6.68 per gallon. DC's gas tax is 35.7 cents per gallon and its cigarette excise tax is $5.07 per pack of 20 cigarettes.
Property tax
Real property is taxed based on its classification, grouping properties by similar use. Properties in different classes are taxed at different rates.
Class 1A - residential multifamily dwellings with three or more units - carries a rate of $0.85 per $100 of taxable assessed value. Class 1B - single-family homes, row houses, and townhouses - is also taxed at $0.85 per $100 for the first $2.5 million in assessed value, and $1.00 on assessed value above $2.5 million. That higher rate on values above $2.5 million is commonly called the "mansion tax," passed as part of DC's fiscal year 2025 budget.
Commercial properties (Class 2, valued at $5 million or less) are taxed at $1.65 per $100 of taxable assessed value - about twice the residential rate.
Despite a relatively high nominal rate, the actual burden for most DC homeowners is lower than you might expect. Homeowners in the nation's capital pay some of the lowest property tax rates in the country; the effective property tax rate in DC is 0.63%. A big reason: the Homestead Deduction, which reduces a residential property's assessed value by $78,700 before computing the yearly tax liability.
The "Schedule H" program provides an income-based property tax credit to residents with low and moderate incomes. It is available to both homeowners and renters, who are assumed to pay a portion of DC property taxes through higher rent. For tax year 2025, the credit can reduce tax liability by up to $1,425. To be eligible, an individual needs an adjusted gross income of $66,000 or less if under age 70, or $90,000 or less for those aged 70 or older.
Corporate and estate taxes
The District of Columbia has an 8.25% corporate income tax rate. For estates, DC has an estate tax that applies to estates over $4.873 million in 2025; for estates above that threshold, rates are applied based on the total gross estate.
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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.
