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District of Columbia
The Facts on the District of Columbia's Tax Climate
8.95%individual income taxTop rate
9.4%corporate income taxFlat rate
$2997property taxcollections per capita
DC's Individual Income Tax System
DC's personal income tax system consists of five brackets and a top rate of 8.95%. That rate ranks 7th highest among states levying an individual income tax. DC's state and local income tax collections per person were $2379 in 2012 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 $744 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 $1773 per person in general sales taxes and $683 per person in excise taxes, for a combined figure of $2456, which ranks 4th highest nationally. DC's gasoline tax stands at 23.5¢ (19th lowest nationally), while its cigarette tax stands at $2.5 (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 $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 18th 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 2014, DC taxpayers worked until April 18th (19th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Maryland, April 28th (ranked 7th latest nationally); and Virginia, April 24th (ranked 11th latest nationally).
DC's State and Local Tax Burden In Line with National Average
DC's 2011 tax burden of 9.7% ranks 20th highest out of 50 states, and is below the national average of 9.8%. DC's taxpayers pay $6641 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 2015 Business Tax Climate Index Ranks 45
DC ranks 45th 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, 40th, and Virginia, 27th.
State Business Tax Climate Index (full study)
District of Columbia Info
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