Today is May 26, the anniversary of the Quill v. North Dakota decision of 1992, when the U.S. Supreme Court upheld “the continuing validity” of restricting state sales tax powers only to businesses with property or...
District of Columbia
The Facts on the District of Columbia's Tax Climate
8.95%individual income taxTop rate
9.2%corporate income taxFlat rate
$3,032property taxcollections per capita
DC's Individual Income Tax System
DC's personal income tax system consists of six brackets and a top rate of 8.95%. That rate ranks 6th highest among states levying an individual income tax. DC's state and local income tax collections per person were $2,526 in 2014 which ranked 2nd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
DC's Corporate Income Tax System
DC's corporate income tax system consists of a flat rate of 9.4%. That rate ranks 4th highest among states levying a corporate income tax. DC's state and local corporate income tax collections per person were $698 in 2012 which ranked 2nd highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
DC Sales and Excise Taxes
DC levies a 5.75% general sales or use tax on consumers, which is below the national median of 5.95%. DC's state and local governments collect $1,671 per person in general sales taxes and $655 per person in excise taxes, for a combined figure of $2,326, which ranks 4th highest nationally. DC's gasoline tax stands at 23.5¢ (19th lowest nationally), while its cigarette tax stands at $2.50 (11th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
D.C's Property Tax Collections Relatively High
D.C.'s state and local governments collect approximately $3,032 per person in property taxes. D.C. is a unique state-local entity that is heavily urbanized, so this number is not directly comparable to other states; however, if D.C. were a state it would rank #1.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 26th in DC
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2016, DC taxpayers worked until April 26th (39th nationally) to pay their total tax bill.
DC's State and Local Tax Burden Ranks 10th
DC's 2012 tax burden of 10.6% ranks 10th highest out of 50 states, and is above the national average of 9.9%. DC's taxpayers pay $5,231 per capita in state and local taxes.
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
DC's 2016 Business Tax Climate Index Ranks 42nd
DC ranks 42nd in the Tax Foundation's State Business Tax Climate Index. The Index compares states in five areas of taxation that impact business: corporate income tax (36th), individual income tax (34th), sales tax (40th), unemployment insurance tax (27th), and property tax (39th).
State Business Tax Climate Index (full study)
District of Columbia Info
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