DC

Sales Tax

  • 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: 47.20 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 53.20 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $5.01/pack of 20

 

Personal Income Tax

  • Personal Income Tax Rate Range: Six brackets from 4.0% to 8.95% on income over $1,000,000
  • Standard deduction: Single Filing Status: $12,550. Married Filing Jointly $25,100. Additional deduction of $1,600 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: National Guard and reservist pay is exempt as well as some active duty military pay.
    • 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: Taxable to the extent included in federal Adjusted Gross Income. However, per District code, "Survivor benefits received from the District of Columbia or the federal government by persons who are 62 years of age or older by the end of the taxable year are fully excluded from District Individual Income Tax."

 

Property Tax

  • 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 $1,200 tax credit. Income restrictions apply (AGI cannot exceed $55,700 under age 70 or $75,900 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.
    • 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 million can pay a tax from 11.2% to 16%. 

 

Department of Revenue website: www.otr.cfo.dc.gov