District of Columbia

The Facts on the District of Columbia's Tax Climate

8.95%

individual income tax

Top rate
9.975%

corporate income tax

Flat rate
6%

sales tax
$3106

property tax

collections per capita

DC's Individual Income Tax System
DC's personal income tax system consists of four brackets and a top rate of 8.95%. That rate ranks 6th highest among states levying an individual income tax. DC's income tax collections per person were $1850 in 2010 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 9.975%. That rate ranks 3rd highest among states levying an corporate income tax. DC's corporate tax collections per person were $549 in 2010 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 6% general sales or use tax on consumers, which is the same as the national median of 6%. DC's state and local governments collect $1438 per person in general sales taxes and $835 per person in excise taxes, for a combined figure of $2272, which ranks 3rd highest nationally. DC's gasoline tax stands at 23.5¢ (22nd lowest nationally), while its cigarette tax stands at $2.5 (10th 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 $3106 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 17th 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 2013, DC taxpayers worked until April 17th (16th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Maryland, April 21st (ranked 8th latest nationally); and Virginia, April 20th (ranked 10th latest nationally).

Full study of Tax Freedom Day, nationwide and in each state

DC's State and Local Tax Burden Below National Average

DC's 2010 tax burden of 9.25% ranks 20th lowest out of 50 states, and is below the national average of 9.9%. DC's taxpayers pay $5991 per capita in state and local taxes.
DC's State-Local Tax Burden, 1977-Present
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 2013 Business Tax Climate Index Ranks 44

DC ranks 44th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Maryland, 41st, and Virginia, 27th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)