DC

Sales Tax

  • District-wide: 6.0%
  • Current average sales tax (with local taxes included): 6.0%
  • Common Exceptions:
    • Prescription and Over-the-Counter Medicine: Exempt
    • Unprepared Foods: Exempt
    • Prepared Foods: 10%
  • Vehicle Tax: 6% to 8%, based on weight
  • Gasoline Tax: 53.30 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 59.30 cents/gallon (Includes all state, local, and federal taxes)

 

Personal Income Tax

  • Personal Income Tax Rate Range: Seven brackets from 4.0% to 10.75% on income over $1,000,000. Same brackets apply to single and joint filers.
  • Standard deduction: Single Filing Status: $14,600. Additional deduction of $1,350 if 65 and over or blind.
  • Personal Exemption Allowance: None
  • Itemized Deductions Allowed? Yes, if itemized on federal return. Subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Up to $2,000 exempt on in-state pensions; remainder is taxable at ordinary income tax rates*
  • Military Pay
    • Active Duty Pay: Taxable at ordinary income tax rates.
    • Military Retirement Pay: Taxable at ordinary income tax rates*
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt if beneficiary is over 62. 
  • *Exemption of up to $3,000 on retirement pay available if 62 and older


Property Tax

  • Local municipalities average .56% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value. Current tax rate is $0.85 per $100. An assessment cap credit is automatically rewarded of any tax resulting from an increase of more than 10% (5% for seniors or disabled) of assessed value every year. 
  • Relief programs for:
    • Homeowner Property Tax Credit: Up to $1,325 tax credit. Income restrictions apply (AGI cannot exceed $61,300 under age 70 or $83,700 age 70 or older).
    • Homestead Exemption: Reduction of up to $87,050 of assessed value is available.
    • 65 and Over or Disabled: Reduces property tax 50% if meet requirements. Deferral programs also available. Any increase might be capped at 2%
    • Disabled Veteran School Tax Credit: Credit of 100% on non-vocational school district property tax if 100% disability rating and resident for at least three years.
    • Low-Income/Seniors 65 and Over: Deferral programs available.
    • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: Estates over $4,710,000 can pay a tax from 11.2% to 16%. 

 

Department of Revenue website: www.otr.cfo.dc.gov

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