State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

District Of Columbia State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

District Of Columbia

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The Bottom Line
Flag of District Of Columbia

Tax-Friendly

The Nation's Capital has a progressive income tax structure that's gets steep quickly. Taxable income over $40,000 is taxed at 6.5%, though the top rate of 8.95% is reserved for taxable income over $1,000,000. The sales tax of 6% is modest and levied on very little, and property taxes are well below average.

Income Tax Range

Low: 4% (on taxable income up to $10,000)

High: 8.95% (on taxable income over $1,000,000)

Sales Tax

6% city sales tax.

Groceries: Exempt
Clothing: Taxable
Motor Vehicles: Exempt from ordinary sales tax, but taxable under special 6% to 8% excise tax
Prescription Drugs: Exempt

Real Property Taxes

In the District of Columbia, the median property tax rate is $564 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 28.8¢ per gallon.
Diesel: 28.8¢ per gallon.

Sin Taxes

Cigarettes: $5 per pack
Other tobacco products: 91% of the wholesale price
Vapor products: 91% of wholesale price

Beer: $0.09 per gallon
Wine: $0.30 per gallon ($0.40 if above 14% alcohol by volume; $0.45 for sparkling wine)
Liquor: $1.50 per gallon
Off-premises alcohol sales are taxed at 10.25% (10% for to-go sales or delivery with food).

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

For 2021, Washington, D.C., estates valued over $4 million are subject to a city estate tax. Rates in 2021 range from 11.2% to 16%.


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