District of Columbia Income Tax Calculator

Taxes in Washington, D.C.

District of Columbia Tax Quick Facts

• Income tax: 4% - 10.75%
• Sales tax: 6%
• Property tax: 0.57% effective rate
• Gas tax: 23.5 cents per gallon of regular gasoline and diesel

In addition to federal income taxes, taxpayers in the nation’s capital pay local taxes to the District of Columbia. These include a district income tax, with rates ranging from 4% to 10.75%, a 6% sales tax and property taxes on real estate. The District has an average effective property tax rate of 0.57%. Of course, all of these taxes have their own specific rules and exceptions.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Washington, D.C. Income Taxes

Any person who lived in the District of Columbia for at least 183 days during the course of the taxable year must file a D.C. tax return (though only if he or she was required to file a federal tax return). The D.C. income tax consists of seven tax brackets, with rates from 4% to 10.75%. The table below shows the brackets and rates for all filing statuses in D.C.

D.C. income tax rates apply to taxable income. This is derived from federal adjusted gross income (AGI), which includes salaries, wages, interest, dividends, capital gains (described in further detail below), rental income and royalties. However, a number of adjustments can be made to that total to reduce taxable income.

For example, part-year residents can subtract income earned while they were not living in D.C. Any Social Security income that is taxed federally can also be subtracted, as can interest from U.S. debt obligations, long-term care insurance premiums and contributions to D.C. College Savings Plans (up to $4,000 for single filers or $8,000 for joint filers).

After adjustments have been made, you can apply deductions. The standard deduction in D.C. for the 2023 tax year is $13,850. Married couples filing jointly can claim a standard deduction of $27,700. As an alternative, you can also claim itemized deductions in D.C. These are equal to the total of your federal itemized deductions, less the amount you claimed for either the state and local income tax deduction or the state and local general sales tax deduction.

Washington, D.C. Tax Credits

Once you have calculated your income tax in D.C., you may be eligible for a number of credits that will reduce your income taxes owed. Credits for individual taxpayers in D.C. include:

• The Early Learning Tax Credit allows filers up to $1,115 for each qualifying dependent under the age 4 who attends a licensed child care facility.
• The Earned Income Tax Credit is equal to 70% of the federal credit for tax year 2023.
• The state income tax credit is credit for income taxes paid in other states.
• The Alternative Fuel Credit is available to taxpayers who install alternative vehicle infrastructure in their homes (charging stations, etc.) or who convert their vehicles from gasoline to an alternative fuel.

Washington, D.C. Sales Tax

The general sales tax rate in Washington, D.C. is 6%. This is collected by retailers and vendors, and charged to consumers. It applies to most goods (also called “tangible personal property”) and some services.

Types of services that are subject to sales tax in D.C. include maintenance of real property (buildings, houses, land, etc.) and landscaping; data processing services such as word processing, business accounting and data storage; and information services like electronic data retrieval, wire services, scouting services and surveys.

There are a number of items specifically exempt from sales tax in Washington, D.C. Prescription and non-prescription drugs are exempt, as are other staple goods like groceries and clothes.

On the other hand, some goods and services face higher sales tax rates. Private parking commercial lots are subject to a tax of 18%. Hotels and motels face a tax rate of 14.95%. Restaurants are subject to a tax rate of 10%, while liquor and rental cars are taxed at 10.25%.

D.C. also collects a separate motor vehicle excise tax at the issuance of new certificates of title for any motor vehicle. The rates depend on the fair market value and weight of the vehicle. Vehicles up to 3,499 pounds face a rate of up to 8.1%. Vehicles from 3,500 to 4,999 pounds face a rate of up to 9.1%. Vehicles weighing more than that are subject to a rate of up to 10.1%.

Washington, D.C. Property Tax

D.C. has one of the lowest effective property tax rates (which is the property tax as a percentage of market value) in the country at a mere 0.57%.

To learn more about getting a mortgage in D.C., check out our D.C. mortgage guide. It highlights important information about rates and getting a mortgage in the nation’s capital.

Washington, D.C. Gas Tax

The gas tax in the nation’s capital is 23.5 cents per gallon. The tax applies not only to gasoline, but to all fuel types, including diesel, kerosene, ethanol and benzol.

Washington, D.C. Cigarette Tax

Cigarettes are taxed at a rate of $2.50 per pack of 20 in Washington, D.C. Cigarettes sold to the military and to the federal government are exempt from this tax.

Washington, D.C. Alcohol Tax

Alcohol sales in Washington, D.C. face two separate types of taxes. The first are excise taxes that are charged to the wholesaler. These vary by the type of alcohol. Beer is taxed at a rate of $2.79 per barrel (42 gallons). Wine with less than 14% alcohol by volume is taxed at rate of 30 cents per gallon, while wine with more than 14% alcohol by volume is taxed at a rate of 40 cents per gallon. Liquor is taxed at a rate of $1.50 per gallon.

The second type of tax is the alcohol-specific sales tax. The rate for that tax is 10.25% of the purchase price, which is charged by the vendor to the consumer.

Washington, D.C. Estate Tax

Washington, D.C. has an estate tax that applies to estates of over $4.528 million in 2023. For estates above that threshold, rates are applied based on the total gross estate. That includes bank accounts, real estate, automobiles, investments and other valuable property held by the decedent. Tax rates are applied to the taxable estate based on brackets. Rates start at 11.2%, but the top rate of 16% applies to the portion of any estate beyond $10 million.

• About 30% of the population of Washington, D.C. is employed by the government.
• Construction on the Washington Monument was halted for 23 years, from 1854 to 1877, because of a lack of funding, discord in the Washington National Monument Society and the Civil War.
• Washington, D.C. has 19 separate universities and colleges.