District of Columbia state income tax
District of Columbia has a state income tax. It is graduated, with a top marginal rate of 10.75%. Seven brackets: 4% up to $10,000; 6% $10,000-$40,000; 6.5% $40,000-$60,000; 8.5% $60,000-$250,000; 9.25% $250,000-$500,000; 9.75% $500,000-$1,000,000; 10.75% over $1,000,000. Capital gains are taxed as ordinary income (no special lower rate).
Does District of Columbia have a state income tax?
Yes. District of Columbia taxes individual income on a graduated schedule topping out at 10.75%. Seven brackets: 4% up to $10,000; 6% $10,000-$40,000; 6.5% $40,000-$60,000; 8.5% $60,000-$250,000; 9.25% $250,000-$500,000; 9.75% $500,000-$1,000,000; 10.75% over $1,000,000.
| Item | District of Columbia |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 10.75% |
| Capital gains | Taxed as ordinary income, up to 10.75% |
| State sales tax | 6% |
| Avg. property tax rate | 0.58% of home value |
| Estate / inheritance tax | Estate tax (exemption $4,988,400) |
How does District of Columbia tax capital gains?
District of Columbia has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 10.75%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in District of Columbia?
Retirement income is taxed differently from wages in many states. For how District of Columbia treats Social Security, pensions, and 401(k)/IRA withdrawals, see District of Columbia retirement taxes.
Sources
- District of Columbia income tax rates and brackets: District of Columbia Department of Revenue / Taxation.
- District of Columbia capital gains treatment: District of Columbia tax authority.
- District of Columbia sales tax: District of Columbia Department of Revenue.