District of Columbia state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | Graduated rates from 4% up to 10.75% on income above $1 million in Tax Foundation’s 2026 table. DC taxes residents only; nonresident commuters are not taxed by DC. Verify current-year figures. |
| Tax agency | DC Office of Tax and Revenue (OTR) |
| Main individual return | Form D-40 (residents); Form D-40B (part-year residents) |
| Local income taxes | DC is a single jurisdiction with one individual income tax. There are no separate city or county income taxes. |
| Sales tax | A 6% base rate under Tax Foundation’s mid-2026 data; DC charges higher rates on some categories such as restaurant meals and alcohol (verify with OTR). |
| Property tax | Real property is assessed and taxed by DC OTR with different rates for residential, commercial and vacant properties; homestead and senior relief programs exist. |
| Retirement & Social Security | DC does not tax Social Security. Other retirement income is generally taxable with an age-based subtraction for some pensions; confirm with OTR. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the DC Office of Tax and Revenue (OTR) website.
How District of Columbia income tax works
The District of Columbia taxes residents’ income with a graduated schedule. Tax Foundation’s 2026 table lists seven brackets: 4% on the first $10,000, then 6%, 6.5%, 8.5%, 9.25%, 9.75%, and a top 10.75% on income above $1 million. DC’s standard deduction follows the federal amount, which is unusual among jurisdictions, and DC starts from federal adjusted gross income. As with any graduated tax, only the portion of income in each bracket is taxed at that bracket’s rate; our guide on how brackets work explains the mechanics.
The most important DC-specific rule is about commuters. Federal law does not permit DC to tax nonresident income, so someone living in Maryland or Virginia and working in DC is not subject to a DC income tax return for that work; instead, those workers’ home states tax them. Tax Foundation notes that Maryland and Virginia have commuter agreements with DC under which each state taxes its own residents and exempts DC residents who work in those states. If you live in DC and work in either state, you generally file only a DC return on that income. People with other out-of-DC situations should read OTR’s guidance on part-year residency and multi-jurisdiction income.
Businesses and the self-employed face a separate DC regime. DC imposes an unincorporated business franchise tax on certain self-employed individuals and partnerships above a gross-income threshold, in addition to DC income tax on a personal return. If you freelance in DC, check OTR’s business tax pages in addition to the individual tax pages and the federal self-employed taxes guide.
Filing your District of Columbia return and free options
DC residents file Form D-40 through MyTax.DC.gov, OTR’s online portal. According to OTR’s individual tax page, you can file a D-40 for free on MyTax.DC.gov, and the portal also supports estimated payments (D-40ES) and extension requests (FR-127). DC’s regular deadline matches the federal deadline (April 15 in most years), and an extension to file is not an extension to pay.
OTR’s instructions also note that a DC return may be required based on DC-specific income thresholds even if you do not owe federal tax, so check the D-40 booklet if your income is low. See our free federal filing hub for the federal side and state refund status for what to expect after you file.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things District of Columbia residents often ask about
- Residents only: DC cannot tax nonresident commuters; their home state does.
- Federal-style deduction: DC’s standard deduction follows the federal amount and moves with it.
- Unincorporated business tax: freelancers and partnerships may owe a separate franchise tax above a gross-income threshold.
- Sales tax categories: DC has higher rates on some items such as restaurant meals; check OTR’s sales tax pages.
- Moving to or from DC: part-year residents prorate income by residency dates; keep move documentation.
Official District of Columbia links
- DC Office of Tax and Revenue
- MyTax.DC.gov (file, pay, refund status)
- OTR: individual income tax forms
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
Do I owe DC income tax if I work in DC but live in Maryland or Virginia?
No. DC cannot tax nonresidents’ income, so commuters are taxed by their home state. If you live in DC and work in another state, check that state’s rules.
What is the DC income tax rate?
DC uses graduated rates from 4% up to 10.75% on income above $1 million in Tax Foundation’s 2026 table. Confirm the current schedule on the D-40 instructions.
Can I file my DC return for free?
OTR says you can file a D-40 for free through MyTax.DC.gov.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.