How taxes work in District of Columbia
Sales tax. District of Columbia charges a 6% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 6% is the number that matters at the till. Groceries are generally exempt from the state sales tax; local rules can differ. Restaurant meals are taxed at 10% in DC.
Property tax. At an average effective rate of about 0.56%, a $350,000 home in District of Columbia carries roughly $1,960 a year in property tax before exemptions. District of Columbia is a low-property-tax state, which quietly lowers the true cost of owning there. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Progressive local income tax, top rate 10.75%. DC is a district, not a state, but shoppers and workers face its taxes like one. If you are self-employed in District of Columbia, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How District of Columbia compares with similar states
The states closest to District of Columbia on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| District of Columbia (this page) | 6% | 0.56% | Progressive |
| Idaho | 6.02% | 0.69% | Flat |
| Kentucky | 6% | 0.86% | Flat |
| Maryland | 6% | 1.06% | Progressive |
| Michigan | 6% | 1.54% | Flat |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in District of Columbia
Property tax is light in District of Columbia: an average effective rate of 0.56% ranks 44 of 51, well below the all-state average of 1.04%. A $400,000 home carries about $2,240 a year. Low property tax lowers the fixed cost of owning, which partly offsets whatever the state's income and sales taxes take.
Read together: District of Columbia combines an average combined sales tax of 6% (rank 41 of 51), an average effective property tax of 0.56% (rank 44 of 51) and progressive income tax brackets. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in District of Columbia
Washington. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The District of Columbia sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for District of Columbia residents
- District of Columbia Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact District of Columbia local rate.
- Mortgage Calculator — include District of Columbia property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for District of Columbia freelancers.