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?

Top Individual Income Tax Rate

10.75%

See Full Study

State and Local Individual Income Tax Collections per Capita

$2946

Click for a comparative tax map!

State and Local Tax Burden

10.1%

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

8.25%

See Full Study

State Business Tax Climate Index Ranking

48

See Full Study

State Sales Tax Rate

6.00%

Click for a comparative tax map!
See Full Study

Combined State and Average Local Sales Tax Rate

6.00%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$1788

Click for a comparative tax map!

State Gasoline Tax Rate (cents per gallon)

33.8¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$5.02

Click for a comparative tax map!

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

0.62%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$4242

Click for a comparative tax map!

Featured Articles

Close to Home: A Short Guide to Property Taxes

March 27, 2023

Facts & Figures 2023: How Does Your State Compare?

March 23, 2023

Local Income Taxes: A Primer

February 23, 2023

State Individual Income Tax Rates and Brackets for 2023

February 21, 2023

State and Local Sales Tax Rates, 2023

February 7, 2023

State Corporate Income Tax Rates and Brackets for 2023

January 24, 2023

Related Articles

Close to Home: A Short Guide to Property Taxes

March 27, 2023

Facts & Figures 2023: How Does Your State Compare?

March 23, 2023

Local Income Taxes: A Primer

February 23, 2023

State Individual Income Tax Rates and Brackets for 2023

February 21, 2023

State and Local Sales Tax Rates, 2023

February 7, 2023

State Tax Policy as an Inflation Response

January 26, 2023

State Corporate Income Tax Rates and Brackets for 2023

January 24, 2023

Americans Moved to Low-Tax States in 2022

January 10, 2023

Excise Taxes and Fees on Wireless Services Increase Again in 2022

December 20, 2022

The Efficiency of State Administration of Local Taxes

December 13, 2022

Cigarette Taxes and Cigarette Smuggling by State, 2020

December 6, 2022

States Should Make Full Expensing Permanent to Help Curb Inflation

November 29, 2022

Ranking State Tax Systems: Corporate Taxes

November 22, 2022

Do Unto Others: The Case for State Income Tax Reciprocity

November 16, 2022

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

November 3, 2022

2023 State Business Tax Climate Index

October 25, 2022

How Do Taxes Affect Interstate Migration?

October 11, 2022

Combined Federal and State Corporate Income Tax Rates in 2022

September 27, 2022

Where Do People Pay the Most in Property Taxes?

September 13, 2022

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)

August 25, 2022