Skip to content

Taxes In The District of Columbia

District of Columbia Tax Rates, Collections, and Burdens

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. Overall, DC’s tax system ranks 48th on our 2024 State Business Tax Climate 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?

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

State Tax Data

Individual Taxes

Top Individual Income Tax Rate
10.75%See Full Study
State Local Individual Income Tax Collections per Capita
$3945Rank: 1
State and Local Tax Burden
12.0%Rank: 39See 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
$1840Rank: 9
State Gasoline Tax Rate (cents per gallon)
34.9¢Rank: 17
State Cigarette Tax Rate (dollars per 20-pack)
$5.03Rank: 2

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.57%Rank: 37
State and Local Property Tax Collections Per Capita
$4489Rank: 1

All Related Articles

Tax treatment of electric vehicles ev taxes by state 2023 vehicle registration fees and EV tax credits

How Are Electric Vehicles Taxed in Your State?

The state EV taxation landscape reflects the evolving transportation sector and the pressing need to address both fiscal gaps in road funding and environmental concerns.

4 min read
2023 State Vape Tax Rates Compare State Vapor Tax Rates and State Vaping Tax Rates

Vaping Taxes by State, 2023

If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.

3 min read

States Move Away from Throwback and Throwout Rules

As more and more states move away from throwback or throwout rules, those states that still impose these rules are becoming less attractive for businesses, which are incentivized to relocate their sales activities to non-throwback states.

6 min read
2023 state gas tax rates by state California Illinois Pennsylvania

How High are Gas Taxes in Your State?

California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).

2 min read
2023 beer taxes by state alcohol excise tax rates and beer excise tax rates

Beer Taxes by State, 2023

Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.

3 min read
2023 state distilled spirits taxes on alcoholic beverages and compare liquor taxes and alcohol taxes across the country using DISCUS sdata

Distilled Spirits Taxes by State, 2023

Of all alcoholic beverages subject to taxation, stiff drinks—and all distilled spirits—face the stiffest tax rates. Like many excise taxes, the treatment of distilled spirits varies widely across the states.

4 min read