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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