DC Tax Guide

Q: What is the DC income tax rate?

DC has a progressive income tax with seven brackets ranging from 4% on the first $10,000 of taxable income to 10.75% on income over $1,000,000. The same brackets apply to all filing statuses.

⚠️ Important Disclaimer

This guide is for general informational purposes only and provides simplified overviews and estimates. It does not provide tax, legal, payroll, accounting, or financial advice.

Tax rules can change, and actual paycheck amounts may vary based on your employer, benefit elections, filing status, local taxes, deductions, credits, garnishments, and withholding elections. This guide does not cover every possible tax scenario.

For personalized tax advice, please consult a qualified tax professional.

For official guidance, review materials from the DC Office of Tax and Revenue and the Internal Revenue Service (IRS).

Last reviewed: June 2026

District of Columbia at a Glance

The District of Columbia has a progressive income tax system with seven brackets, ranging from 4% on the first $10,000 of taxable income to 10.75% on income exceeding $1,000,000. The same bracket thresholds apply to all filing statuses. As a federal district, DC functions as both a city and state for tax purposes — residents pay both federal and DC income taxes.

The 8.5% bracket kicks in at just $60,000 of taxable income, which is notably earlier than most states’ near-top-bracket thresholds. The standard deduction is $14,600 for single filers and $29,200 for married filing jointly. DC does not tax Social Security benefits, and reciprocity agreements with Maryland and Virginia mean that residents of those states who work in DC pay only their home-state income tax.

Key Tax Facts for DC

State Income Tax

4% – 10.75%

Federal Brackets

10% – 37%

Social Security

6.2%

Medicare

1.45%

SS Wage Base

$184,500

Standard Deduction

$14,600 / $29,200

DC Income Tax Brackets (2026)

Below are the District of Columbia income tax brackets. The same brackets apply to all filing statuses. Rates apply to taxable income within each range — you only pay the higher rate on the portion of income that falls in that bracket.

All Filing Statuses

Taxable Income	Tax Rate
$0 – $10,000	4.00%
$10,001 – $40,000	6.00%
$40,001 – $60,000	6.50%
$60,001 – $250,000	8.50%
$250,001 – $500,000	9.25%
$500,001 – $1,000,000	9.75%
Over $1,000,000	10.75%

How Your DC Paycheck Is Calculated

Every paycheck goes through the same basic pipeline from gross pay to the net amount that hits your bank account:

Gross Pay — Your total earnings for the pay period. For hourly workers this is (hours × rate) plus any overtime or double-time premiums. For salaried employees it’s your annual salary divided by the number of pay periods.
Pre-Tax Deductions — Contributions to 401(k), 403(b), HSA, or FSA are subtracted before income taxes are calculated. These lower your taxable wages but Social Security and Medicare still apply to the full gross in most cases.
Federal Income Tax — Withheld using the IRS Publication 15-T percentage method based on your W-4 filing status, credits, and additional withholding elections. For 2026, rates range from 10% to 37%.
DC Income Tax — DC withholds income tax at rates of 4% – 10.75% based on your annualized income and filing status. The standard deduction is $14,600 (single) / $29,200 (MFJ).
FICA Taxes — Social Security (6.2% on wages up to $184,500) and Medicare (1.45% on all wages). If your year-to-date earnings exceed the Social Security wage base, that portion stops being withheld.
Net Pay (Take-Home) — What’s left after all taxes and deductions. This is the amount deposited into your account each pay period.

Good to Know

Review your W-4 periodically. If you consistently receive a large refund, you may be over-withholding. Consider reviewing your W-4 Step 3 credits or Step 4(b) deductions to better align your withholding with your actual tax liability. The IRS Tax Withholding Estimator can help.
Benefits of contributing to a 401(k) or 403(b). Pre-tax retirement contributions can reduce your federal and DC taxable income for the year. Even a modest percentage — say 3% to 6% — may noticeably lower your tax withholding while building long-term savings. Consult your plan administrator or a financial advisor for guidance.
Benefits of an HSA if you’re eligible. Health Savings Accounts offer a rare triple tax advantage — contributions lower your taxable income now, the balance grows tax-free, and withdrawals for qualified medical expenses are also tax-free. If you’re enrolled in a qualifying high-deductible health plan, an HSA is one of the most tax-efficient savings tools available.
DC tax note. The 8.5% bracket kicks in at just $60,000 of taxable income — earlier than almost any state’s near-top-bracket threshold. Most working professionals earning $80K–$240K will pay an effective DC rate of roughly 6%–7.5%.
DC tax note. DC has reciprocity agreements with Maryland and Virginia. If you live in MD or VA and work in DC, you pay only your home-state income tax — not DC tax. File Form D-4A with your employer to claim exemption from DC withholding.
DC tax note. DC does not tax Social Security retirement benefits. Your Social Security income is fully exempt from DC income tax.

Frequently Asked Questions

What is the DC income tax rate?

DC has a progressive income tax with seven brackets: 4% on the first $10,000 of taxable income, 6% on $10,001–$40,000, 6.5% on $40,001–$60,000, 8.5% on $60,001–$250,000, 9.25% on $250,001–$500,000, 9.75% on $500,001–$1,000,000, and 10.75% on income over $1,000,000. The same brackets apply to all filing statuses.

Does DC tax Social Security benefits?

No. The District of Columbia does not tax Social Security retirement benefits. Your Social Security income is fully exempt from DC income tax.

Do Maryland or Virginia residents working in DC pay DC taxes?

No. DC has reciprocity agreements with Maryland and Virginia. If you live in MD or VA and work in DC, you pay only your home-state income tax. File Form D-4A (Certificate of Nonresidence in the District of Columbia) with your employer to claim exemption from DC withholding.

Sources

The information in this guide is based on the following official and publicly available sources. Always verify current rates and rules before making financial decisions.