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Tax Brackets
District of Columbia Income Tax Brackets 2026
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $10,000 | 4% | $400 |
| $10,001 - $40,000 | 6% | $1,800 |
| $40,001 - $60,000 | 6.5% | $1,300 |
| $60,001 - $250,000 | 8.5% | $16,150 |
| $250,001 - $500,000 | 9.25% | $23,125 |
| $500,001 - $1,000,000 | 9.75% | $48,750 |
| Over $1,000,001 | 10.75% | -- |
Overview
Understanding District of Columbia Taxes
The District of Columbia levies a graduated income tax with seven brackets, ranging from 4.00% to 10.75%. The top rate of 10.75% applies to income over $1 million and is the third-highest top marginal rate in the country (behind California and Hawaii). DC uses the same bracket thresholds for all filing statuses, which means married couples filing jointly do not benefit from wider brackets as they do in many states.
DC conforms to the federal standard deduction ($14,600 single, $29,200 married filing jointly) and provides personal exemptions of $4,050 per person. DC residents who work in DC pay DC income tax as expected. However, DC residents who work in Virginia or Maryland also pay DC income tax (DC taxes residents on worldwide income regardless of where they work). Conversely, Virginia and Maryland residents who work in DC pay tax to their home state, not DC — DC does not have a commuter tax.
DC does not tax Social Security benefits at the state level. The District also provides an exclusion for government retirees: federal and DC government pension income is partially excludable. DC allows taxpayers 62+ to exempt up to $3,000 of retirement income from taxation.
DC's sales tax rate is 6.00%, with no local additions since DC has no separate municipalities. Groceries and prescription drugs are exempt. Prepared food and restaurant meals are taxed at 10.00%, and alcohol is taxed at 10.25%. Hotels face a 14.95% occupancy tax. These elevated rates on food service and hospitality are notable for DC residents who frequently dine out.
Property taxes in DC average approximately 0.56%, relatively low for an urban area. DC offers a homestead deduction that reduces the assessed value by $86,650 for owner-occupied primary residences. A senior/disabled homeowner tax credit is also available for qualifying residents. Real property tax rate is $0.85 per $100 of assessed value.
DC has one of the highest costs of living in the nation, with an index of approximately 150. Housing is the primary driver — median home prices in DC exceed $600,000, and average rents are among the highest in the country. However, DC also has one of the highest median household incomes in the nation, reflecting the concentration of federal government, legal, and consulting sector jobs.
FAQ
Frequently Asked Questions
Smart Moves
Tax Tips for District of Columbia Residents
DC's 8.50% rate applies from $60K to $250K — this is the bracket most DC professionals fall into, making it a relatively high-tax jurisdiction for middle-to-upper-income earners
Apply for the homestead deduction on your primary residence to reduce your assessed value by $86,650
DC's 10% restaurant tax makes dining out noticeably more expensive — factor this into your food budget
Other States
Calculate Your Paycheck in Other States
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.