District of Columbia Tax Rate (2026 & 2027 Guide)

The District of Columbia uses a graduated income tax system with multiple tax brackets.

For the 2026 & 2027 tax years, rates range from 4% to 10.75%.

The key thing to understand is that only the income within each bracket is taxed at that rate, not your entire income.

District of Columbia Income Tax Brackets

Single Filers, Married Filing Separately, and Head of Household

• $0 to $10,000 → 4%
• $10,000 to $40,000 → 6%
• $40,000 to $60,000 → 6.5%
• $60,000 to $250,000 → 8.5%
• $250,000 to $500,000 → 9.25%
• $500,000 to $1,000,000 → 9.75%
• $1,000,000+ → 10.75%

Married Filing Jointly

For many brackets, joint filers generally use similar thresholds, but always confirm the latest D.C. tax tables when filing.

How D.C.’s Tax System Works

D.C.’s tax system is progressive, which means your tax rate increases as your income rises. Even if you fall into a higher bracket, only the income above that threshold is taxed at the higher rate.

Example: If you earn $75,000, the first $10,000 is taxed at 4%, the next $30,000 at 6%, the next $20,000 at 6.5%, and only the amount above $60,000 is taxed at 8.5%.

Marginal vs Effective Tax Rate

Understanding this difference is important for tax planning.

• Marginal rate = the highest bracket your income reaches
• Effective rate = the average rate you actually pay

Example: A taxpayer in the 8.5% bracket may have an effective rate closer to 6%–7%, depending on total income.

What Income Is Taxed in D.C.

The District of Columbia taxes most forms of income, including:

• Wages and salaries
• Self-employment income
• Investment income
• Rental income
• Retirement income (with some exclusions and credits available)

D.C. also offers certain credits for low-income and senior taxpayers.

Are D.C. Taxes High?

Compared to most states:

• The top rate of 10.75% is among the highest in the country
• Middle-income brackets are moderate
• Local cost of living is also relatively high

For higher earners, D.C. is considered a high-tax jurisdiction.

Electronic Filing Recommendation 💻

• File electronically to reduce errors and processing delays
• Tax software automatically applies D.C.’s tax brackets
• Double-check credits and deductions
• E-filing helps you receive refunds faster and ensures accuracy

Summary

The District of Columbia has a progressive tax system with rates ranging from 4% to 10.75%. Most taxpayers pay a blended rate rather than the top rate on all income.

Understanding how each bracket works can help you better estimate what you owe and avoid surprises at filing time.