Taxes in The District of Columbia

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 Washington DC rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Washington DC’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

8.95%

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State and Local Individual Income Tax Collections per Capita

$2788

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State and Local Tax Burden

10.6%

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Tax Freedom Day

May 3

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Top Corporate Income Tax Rate

8.25%

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State Business Tax Climate Index Ranking

46

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State Sales Tax Rate

6.00%

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Combined State and Average Local Sales Tax Rate

6.00%

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State and Local General Sales Tax Collections per Capita

$1963

State Gasoline Tax Rate (cents per gallon)

23.50¢

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State Cigarette Tax Rate (dollars per 20-pack)

$4.50

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.56%

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State and Local Property Tax Collections Per Capita

$3535


Featured Articles

State Tax Changes as of July 1, 2019

July 11, 2019

2019 State Business Tax Climate Index

September 26, 2018

Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country

May 15, 2018


Related Articles

Washington D.C.’s Beverage Excise Tax Is Not Good Policy

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State Tax Changes as of July 1, 2019

July 11, 2019

D.C. Property Tax Proposals Should Be Mindful of Base Erosion, Target Simplicity, and Transparency

March 28, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

2018 Outstanding Achievement in State Tax Reform

October 30, 2018

2019 State Business Tax Climate Index

September 26, 2018

Is Every Tax Cut Kansas?

May 16, 2018

D.C. Proposes Sales Tax Increase, Other Tax Changes

May 16, 2018

D.C. Council Forwards Hefty Cigarette Tax Increase

May 15, 2018

Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country

May 15, 2018

Testimony: Should D.C. Have the Highest State Cigarette Tax in the Country?

February 1, 2018

State Tax Changes That Took Effect on January 1, 2018

January 2, 2018

D.C. Council Committee to Vote on Interrupting Tax Reform Package

May 18, 2017

D.C. to Enact Remaining Tax Cuts After Projection of Large Recurring Surplus

February 28, 2017

D.C. Paid Leave Payroll Tax Set for Implementation

February 21, 2017

Several States Will Start 2017 with Corporate Tax Reductions

December 30, 2016

Paid Leave on Agenda in D.C. Today: Mandate vs. Tax

December 20, 2016

Lunch Links: OECD Raises U.S. Growth Projections Based on Trump’s Economic Plans; Compromise Support for D.C. Payroll Tax for Paid Leave; N.J. Gov. Christie Reverses Stance on Tax Reciprocity Pact

November 29, 2016

District of Columbia Chairman Unveils Paid Leave Tax Proposal

November 29, 2016

Lunch Links: Questionable Trump Tax Maneuver to Avoid Debts Cited; Colorado Rebuts Arizona Ads Opposing State’s Marijuana Voter Proposition; Left’s Opposition to Washington Carbon Tax Criticized; Yale Daily News Endorsement Puts Tax Exemption at Risk

November 1, 2016