- District-wide: 6.0%
- Current average sales tax (with local taxes included): 6.0%
- Common Exceptions:
- Prescription and Over-the-Counter Medicine: Exempt
- Unprepared Foods: Exempt
- Prepared Foods: 10%
- Gasoline Tax: 52.20 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 58.20 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
- Personal Income Tax Rate Range: Seven brackets from 4.0% to 10.75% on income over $1,000,000
- Standard deduction: Single Filing Status: $12,950. Married Filing Jointly $25,900. Additional deduction of $1,350 if 65 and over or blind.
- Personal Exemption Allowance: None
- Itemized Deductions Allowed? Yes, if itemized on federal return. Subject to limitations.
- Retirement Income
- Social Security: Exempt
- 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates
- Private pensions: Taxable at ordinary income tax rates
- Public Pensions: Up to $2,000 exempt on in-state pensions; remainder is taxable at ordinary income tax rates
- Military Pay
- Active Duty Pay: Taxable at ordinary income tax rates.*
- Military Retirement Pay: Exemption of up to $3,000 available if 62 and older.
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Exempt if beneficiary is over 62.
- Local municipalities average .56% of the property's assessed value.
- Calculation of assessed value: 100% of fair market value. Current tax rate is $0.85 per $100. An assessment cap credit is automatically rewarded of any tax resulting from an increase of more than 10% (5% for seniors or disabled) of assessed value every year.
- Relief programs for:
- Homeowner Property Tax Credit: Up to $1,225 tax credit. Income restrictions apply (AGI cannot exceed $56,200 under age 70 or $76,700 age 70 or older).
- Homestead Exemption: Reduction of up to $76,350 of assessed value is available.
- 65 and over or Disabled: Reduces property tax 50% if meet requirements. Deferral programs also available. Any increase might be capped at 2%
- Low-income/Senior over 70: If property tax is over 3% of income, may receive credit for amount over 3%. Maximum credit is $1,200. Available to renters also. Abatement program also available.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $4,254,800 ($4,528,800 as of Jan. 1, 2023) can pay a tax from 11.2% to 16%.
Department of Revenue website: www.otr.cfo.dc.gov