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Taxes In The District of Columbia

District of Columbia Tax Rates, Collections, and Burdens

How does the DC tax code compare? The District of Columbia (DC) has a graduated individual income tax, with rates ranging from 4.00 percent to 10.75 percent. DC has a flat 8.25 percent corporate income tax rate. DC also has a 6.00 percent sales tax rate. DC’s tax system ranks 48th overall on our 2023 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and the District of Columbia is no exception. The first step towards understanding Washington DC’s tax code is knowing the basics. How does DC collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
10.75%See Full Study
State Local Individual Income Tax Collections per Capita
$2946Rank: 2
State and Local Tax Burden
10.1%Rank: 29See Full Study

Business Taxes

Top Corporate Income Tax Rate
8.25%See Full Study
State Business Tax Climate Index Ranking
48See Full Study

Sales Taxes

State Sales Tax Rate
6.00%Rank: 17See Full Study
Combined State and Average Local Sales Tax Rate
6.00%Rank: 38See Full Study
State and Local General Sales Tax Collections per Capita
$1788Rank: 6
State Gasoline Tax Rate (cents per gallon)
33.8¢Rank: 21
State Cigarette Tax Rate (dollars per 20-pack)
$5.02Rank: 1

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.62%Rank: 41
State and Local Property Tax Collections Per Capita
$4242Rank: 1

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