Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map District Of Columbia Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Mixed tax picture Living in the Nation’s Capital can be expensive. Though property and sales taxes are unexceptional, the District of Columbia takes a huge bite of income. Taxable income over $40,000 is taxed at a steep 6.5% tax rate (the top rate of 8.95% is reserved for taxable income over $1,000,000). Sales Tax The District of Columbia has a 6% sales tax. Income Tax Range Low: 4% (on taxable income up to $10,000)High: 8.95% (on taxable income above $1,000,000)Effective tax rate: 4.62% for single filers, 4.74% for joint filers. Motor Fuel Taxes Gasoline: $0.2350 per gallon. Diesel: $0.2350 per gallon. Property Taxes In District of Columbia, residents pay an average of $603 in taxes per $100,000 of assessed home value. Vehicle Taxes Drivers pay an excise tax — when a new vehicle is first registered in the District — that ranges from 6% to 8%, depending on the vehicle’s weight. Sin Taxes Cigarettes and little cigars: $4.50 per packOther tobacco products: 91% of the wholesale priceVapor products: 91% of the wholesale priceBeer: $0.70 per gallonWine: $1.73 per gallonLiquor: $6.17 per gallon Taxes On Wireless Service 11.97% Inheritance and Estate Taxes The District’s estate tax is an unusual mix: The 2019 exclusion amount for the tax is $5,681,760, which is pretty high when compared to other places in the U.S. But the lowest possible estate tax rate is 12% of the estate's value, which is equal to other locations’ top rate. Oddball Tax Businesses in the District that sell food or alcohol are required to charge a 5-cent fee for each paper or plastic disposable bag they give to a customer. The store gets to keep a penny, and the balance goes to a government fund dedicated to cleaning up the Anacostia River. About our methodology