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DC Tax Guide: District of Columbia Tax Rates

Navigate the District of Columbia's progressive income tax brackets, sales tax, and property tax details for 2025.

10.75%
Top Income Tax Rate
6.00%
Sales Tax Rate
0.56%
Property Tax Rate
#9
Tax Burden Rank

Tax Overview

The District of Columbia has a progressive income tax system with seven brackets and a top rate of 10.75% on income above $1 million. DC's tax rates are among the highest in the nation, reflecting its status as a high-cost urban area. The District has been gradually adding higher brackets for top earners while providing relief to lower and middle-income residents through credits and exemptions.

Sales tax in DC is 6% on most goods, with higher rates on restaurant meals (10%), parking (18%), and alcohol (10.25%). Groceries and prescription drugs are exempt from sales tax. DC's sales tax is competitive with neighboring Maryland and Virginia, though the restaurant and parking taxes are notably higher.

Property taxes in DC have an effective rate of about 0.56%, which is relatively low for a major urban area. The District offers a homestead deduction of $83,680 off the assessed value for owner-occupied properties, as well as a senior citizen and disabled property tax relief program. The property tax cap limits annual assessment increases for qualifying homeowners. DC also provides a Schedule H tax credit that offers property tax or rent relief based on income.

Income Tax

DC has among the highest income tax rates in the nation, with a top rate of 10.75%. The District provides relief for lower-income residents through credits and programs.

Income RangeTax Rate
$0 – $10,0004%
$10,001 – $40,0006%
$40,001 – $60,0006.5%
$60,001 – $250,0008.5%
$250,001 – $500,0009.25%
$500,001 – $1,000,0009.75%
$1,000,001 +10.75%

Sales Tax

State Rate6.00%
Avg. Local Rate0.00%
Combined Rate6.00%

Property Tax

Effective Rate0.56%
Median Annual Bill$3,544

Key Deductions in District of Columbia

  • ✓DC standard deduction matching federal amounts
  • ✓Homestead deduction ($83,680 off assessed value)
  • ✓Schedule H property tax/rent credit (income-based)
  • ✓Senior citizen/disabled property tax relief
  • ✓DC earned income tax credit (70% of federal EITC)
  • ✓DC 529 plan contribution deduction (up to $4,000 per beneficiary)

Filing Information

Filing Deadline: April 15

Tax Authority: DC Office of Tax and Revenue

Phone: (202) 727-4829

Website: https://otr.cfo.dc.gov

Frequently Asked Questions

Do DC residents pay federal and DC income tax?
Yes, DC residents pay both federal income tax and DC income tax. Unlike state residents, DC residents have no voting representation in the U.S. Senate and only a non-voting delegate in the House, which is a longstanding political issue.
Does DC tax Social Security?
No, the District of Columbia does not tax Social Security benefits. DC follows the federal treatment for other retirement income, but Social Security is fully exempt from DC income tax.
What is the DC homestead deduction?
DC offers a homestead deduction of $83,680 that is subtracted from the assessed value of an owner-occupied primary residence before property taxes are calculated. You must apply and be approved for the deduction.
How does the Schedule H credit work?
The Schedule H Homeowner and Renter Property Tax Credit provides tax relief based on your income relative to property taxes paid (or 20% of rent for renters). The credit can be substantial for lower-income residents and is claimed on your DC tax return.

Neighboring State Guides

MarylandVirginia

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