How does DC’s 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 an 8.25 percent corporate income tax rate. DC has a 6.00 percent sales tax rate. DC also has a 0.57 percent effective property tax rate on owner-occupied housing value.
DC has an estate tax. DC has a 34.9 cents per gallon gas tax rate and a $5.03 cigarette excise tax rate. The District of Columbia collects $13,275 in tax collections per capita. DC has $29,714 in debt per capita and has a 107 percent funded ratio of public pension plans. DC’s tax system ranks 48th overall on the 2025 State Tax Competitiveness Index.
Each tax code is a multifaceted system with many moving parts, and DC is no exception. The first step towards understanding the DC 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 2024: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
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