District of Columbia legislation limits the hybrid vehicle excise tax exemption to those vehicles which achieve 40 miles per gallon (mpg) during city driving. District of Columbia Tax Account Numbers District of Columbia Withholding Account Number. Historically, compliance rates with with the District of Columbia Use Tax have been low. There’s only one sales tax rate - 6%. Under an emergency budget bill, the District of Columbia will increase its sales and use tax rate. View the Guidance. A "soft drink" is defined as a beverage with a natural or artificial sweetener that contains less than 100% juice; or a beverage that is less than 50% milk, soy or other milk substitutes; or coffee, coffee substitutes, cocoa, or tea. The District of Columbia's sales tax is imposed on all sales of tangible property as well as on certain services. The District of Columbia (DC) sales tax rate is currently 6%, ranking 16th-highest in the U.S. Use tax is imposed at the same rate as the sales tax on purchases delivered outside the District and then brought into the District to be used, stored or consumed.DC Code Citation: Title 47, Chapters 20 and 22. The District of Columbia state sales tax rate is 5.75%, and the average DC sales tax after local surtaxes is 5.75%. The sale or possession of other tobacco products. Prepared Food is subject to special sales tax rates under District of Columbia law. The rate may also vary for the same zip code depending of the city and street address. [38] At 5.75 percent, DC’s sales tax is lower than both Maryland and Northern Virginia’s combined state and local 6 percent sales tax. Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. District of Columbia, has a sales tax rate of 5.75% as of October 1, 2013. Sales taxes provided 20 percent of DC tax revenue in 2017. District of Columbia does not allow local jurisdictions like cities or counties to collect a local sales tax. Tax rate change notices. 6%. If you’re unsure, contact the agency at 202-727-4829. Prepared Food is subject to a higher state sales tax then other items. Other changes to tax rates in D.C., also effective October 1, 2018 include: This is a single, district-wide general sales tax rate that applies to tangible personal property and selected services. In the District of Columbia, transfer tax rates differ in price tiers. In addition to federal income taxes, taxpayers in the nation’s capital pay local taxes to the District of Columbia. The old rate of 6% applies to purchases made prior to October 1 but delivered on or after October 1. If you buy goods and are not charged the District of Columbia Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 5.75% sales tax (less any foreign sales tax paid) for these items yourself as the District of Columbia Use Tax. Rollover Relief: (See D.C. Official Code § 47-1817.07). Therefore, sales tax rates will be the same across the entire state. Both District Of Columbia's tax brackets and the associated tax rates were last changed six years ago in 2014.. District of Columbia has six marginal tax brackets, ranging from 4% (the lowest District of Columbia tax bracket) to 8.95% (the highest District of Columbia tax bracket). It's a district-wide sales and use tax. There are no additional sales taxes imposed by local jurisdictions in District of Columbia. So if you have sales tax nexus in Washington D.C. and sell to a buyer in Washington you would charge them the 6% sales tax rate. How often will you file sales tax returns in … See current and past notices about changes to city and county sales tax rates. The District of Columbia has passed sales thresholds for sales tax economic nexus in emergency legislation, effective January 1, 2019. DC Code Citation: Title 47, Chapters 20 and 22. The general consumer sales taxin the District of Columbia is 5.75%. DC has a sales tax rate structure that also includes a 10% rate for liquor sold for off-premise and on-premise consumption, restaurant meals and rental vehicles; 18% rate for parking in commercial lots; and 14.5% for hotels and transient accommodations. Transactions at $399,999 and under are taxed at the rate of 1.1% of the purchase price. Whenever you make a purchase at a licensed District of Columbia retailer, your sales tax will be automatically calculated and added to your bill. Effective October 1, 2019, the District of Columbia is increasing the sales and use tax rate on sales of soft drinks to 8%. In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The original purchaser (as denoted by the Manufacture Certificate of Origin) of a qualifying hybrid or clean fuel vehicle will be eligible for an excise tax exemption and a reduced registration fee for the first period of registration. The District of Columbia is lowering its sales and use tax rate. Taxes in The District of Columbia. (h) Sales of local telephone service, gas, oil and electricity for commercial use. 5.75% for tangible personal property. If you are a new business, register online with the DC Office of Tax and Revenue. 10% for restaurant meals, takeout food, rental cars and telephone calling … This rate structure is utilized, in part, to take advantage of the district’s special status as a tourist center and to increase the contribution of nonresidents working in the city. The District of Columbia sales tax rate is 5.75% as of 2021, and no local sales tax is collected in addition to the DC state tax. The sales tax rate for hotel accommodations is 14.8%, and the rate for parking in commercial lots is 18%. "= Individual Income Taxes and Business Taxes; Property Taxes; Sales and Use Taxes; Sales and Use Tax Table at 6% Rate [PDF] Other Taxes When you file and pay Washington D.C. sales tax depends on two things: your assigned filing frequency and your state’s due dates. The District has an average effective property tax rate of 0.56%. Free District of Columbia Payroll Tax Calculator and DC Tax Rates Updated January 12, 2021 As the capital of the United States, Washington D.C. is known worldwide as a vibrant city full of historical monuments and buildings, as well as iconic museums and performing arts venues. Purchase prices of $400,000 or more are taxed at the rate of 1.45%. Local Jurisdiction Sales and Use Taxes: None You can view the sales tax rates for various cities in District of Columbia here. The changes will apply as required by the Fiscal Year 2019 Budget Support Emergency Act of 2018 for the following tax types: Sales and Use Taxes General sales: The general sales and use tax rate will increase from 5.75 percent to 6 percent. There is an additional sales tax of 9% on liquor and alcohol, 12% on parking fees, 10% on restaurant meals and rental cars, and 14% on hotel fees. Franchise Tax Rate Relief: All QHTC rate relief provisions are repealed in their entirely as of January 1, 2020. (i) Sales of solid fuel or steam. To lookup the sales tax due on any purchase, use our District of Columbia sales tax calculator. The DC sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Effective October 1, 2013, the rate is decreasing from 6% to 5.75%. On making an exempt purchase, Exemption Certificate holders may submit a completed District of Columbia Sales Tax Exemption Form to the vendor instead of paying sales tax. The following pages describe and present analysis of the tax rates for the District of Columbia and the revenues generated by these rates. Therefore, the sales tax in any city or county in District Of Columbia is a flat 6%. The sales tax rate varies by the state and local government in which the purchase is made. 2. Every 2020 combined rates mentioned above are the results of District Of Columbia state rate (6%). (Non-prepared food, including bottled water and pet food, is not subject to the sales tax; however, soda and sports drinks are subject to the sales tax.) These include a district income tax, with rates ranging from 4% to 8.95%, a 6% sales tax and property taxes on real estate. Washington, DC recently lowered the district sales tax by a quarter of a percent from 6% to 5.75%. The District Of Columbia, District of Columbia sales tax is 5.75%, the same as the District of Columbia state sales tax.While many other states allow counties and other localities to collect a local option sales tax, District of Columbia does not permit local sales taxes to be collected. sales tax if charges to the end-user are subject to District of Columbia gross receipts or the toll telecommunication tax. Each state’s tax code is a multifaceted system with many moving parts, and the District of Columbia is no exception.The first step towards understanding Washington DC’s tax code is knowing the basics. Rate variation The 20007's tax rate may change depending of the type of purchase. The rate charts range from 7.0 percent to 20.5 percent and calculate up to a $100 sale. Your are expected to voluntarily list your liable purchases on a District of Columbia Use Tax Return, which should be attached with payment to your District of Columbia Income Tax Return. Read Mayor Bowser’s Presentation from the Situational Update: January 15. District Of Columbia cities and/or municipalities don't have a city sales tax. When are District of Columbia Sales Tax Returns Due? Read Mayor Bowser’s Presentation from the Situational Update: January 15. Liquor sold for consumption elsewhere is subject to a 10% sales tax rate, for example, as are restaurant meals and rental vehicles. Multiply the amount of sales by the tax rate shown in Col. A and In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate. The average combined tax rate is 6%, ranking 38th in the US. The 20007, Washington, District Of Columbia, general sales tax rate is 6%. DC Code Citation: Title 47, Chapter 24. 3. Use tax is imposed at the same rate as the sales tax on purchases delivered outside the District and then brought into the District to be used, stored or consumed. District Of Columbia has state sales tax of 6% , and does not allow local governments like cities or counties to collect a local sales tax. Companies or individuals who wish to make a qualifying purchase tax-free must have a District of Columbia state sales tax exemption certificate, which can be obtained from the District of Columbia Office of Taxpayer Revenue. A retailer that doesn’t have a physical presence in District must collect DC sales tax if it: has retail sales deliveries into the District that exceed $100,000; or 200 or more separate sales delivered into the District. District of Columbia's sales tax rates for commonly exempted items are as follows: Unlike a Value Added Tax (VAT), the District of Columbia sales tax only applies to end consumers of the product. The current sales and use tax rate in D.C. is 5.75%, effective October 1, 2018, the rate will be 6%. 10% - Restaurant meals, liquor and soft drinks for consumption on the premises, and rental vehicles, 10.25% - Alcoholic beverages sold for off-the-premises consumption, 10.25% - Rental or leasing of rental vehicles and utility trailers, 10.25% - Tickets to baseball games or baseball-related events at Nationals Park and for baseball-related tangible personal property sold at Nationals Park, 10.25% - Tickets to events at the Capital One Arena or for event-related tangible personal property sold at Capital One Arena, 14.95% - Hotels (transient accommodations), 18% - Parking motor vehicles in commercial lots, Champagne/sparkling wine = $0.45 per gallon, Light wine (alcohol content 14% or less) = $0.30 per gallon, Heavy wine (alcohol content above 14%) = $0.40 per gallon. All tangible personal property and certain selected services sold or rented at retail to businesses or individuals delivered in the District are subject to sales tax. The District of Columbia state sales tax of 5.75% is applicable statewide. However, Washington, D.C., actually levies a sales tax with 5 different rates. 10% for alcohol sold for off-premises consumption. All tangible personal property and certain selected services sold or rented at retail to businesses or individuals delivered in the District are subject to sales tax. Other items including gasoline, alcohol, and cigarettes are subject to various District of Columbia excise taxes in addition to the sales tax. Both the buyer and seller will pay this transfer tax total to the government.For example, a home bought and sold for $300,000 at a rate of 1.1% would come to $3,300. 8.0% - Sales and use tax on soft drinks. The sale or possession of cigarettes in the District. The District’s sales tax rate has remained largely stable over the past two decades. coronavirus.dc.gov 6.0% - General rate for tangible personal property and selected services, 6.0% - Tickets to legitimate theaters and entertainment venues. The current sales tax rates are: 1. Unlike many other states, District of Columbia doesn't allow municipal governments to collect a local option sales tax. The rate structure for sales and use tax that is presently in effect: Alcoholic beverages manufactured by a holder of a manufacturer’s license and beverages brought into DC by the holder of a wholesaler’s license. (g) Admissions to certain public events. Blog East Coast States Sales Tax Changes to Know D.C. Increases Sales and Use Tax Rate. View the Guidance. DC Entered Phase Two of Reopening on June 22. The combined rate used in this calculator (6%) is the result of the District Of Columbia state rate (6%). Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a District of Columbia Sales Tax Exemption Form to buy these goods tax-free. The new rate will apply to applicable sales made on or after October 1, 2013. $4.50 per pack of 20 cigarettes; plus a surtax of $0.44 per pack for a total of $4.94 per pack. Exemptions to the District of Columbia sales tax will vary by state. The tax is imposed on sale of tangible personal property and selected services. For sales tax purposes, District of Columbia treats candy as a grocery, and does treat soda as a grocery. Tax rate charts. Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full District of Columbia sales tax code) can be downloaded from the District of Columbia Office of Taxpayer Revenue here . The District of Columbia is not a Streamlined member. The state general sales tax rate of District Of Columbia is 6%. District of Columbia state income tax rate table for the 2020 - 2021 filing season has six income tax brackets with DC tax rates of 4%, 6%, 6.5%, 8.5%, 8.75% and 8.95%. Beginning with tax year 2020, all QHTC’s will pay corporation franchise tax at the regular franchise tax rate, currently 8.25%. DC Code Citation: Title 25, Chapter 9. Last updated January 2021. Current Tax Rate(s). Determine the location of my sale DC Entered Phase Two of Reopening on June 22. If you are a District of Columbia business owner, you can learn more about how to collect and file your District of Columbia sales tax return at the 2021 District of Columbia Sales Tax Handbook . If you already have a DC Withholding Account Number, you can look this up online or on on correspondence from the DC Office of Tax and Revenue. District of Columbia doesn't collect sales tax on purchases of most groceries, non-prescription drugs and prescription drugs. (See D.C. Official Code § 47-1817.06). State Sales and Use Tax Rate: 5.75%. District of Columbia has a statewide sales tax rate of 6%, which has been in place since 1949. Tax Rate Charts show how much sales tax is due based on the amount of a sale. 2020 District of Columbia tax brackets and rates for all four DC filing statuses are shown in the table below. The District does have special sales tax rates for certain items. Tax-Rates.org provides free access to tax rates, calculators, and more. There is one yearly "tax holiday" during the winter holiday season, during which no sales taxes are collected on any purchases. 2021 District of Columbia Sales Tax Handbook, downloaded from the District of Columbia Office of Taxpayer Revenue here, District of Columbia sales tax calculator, Groceries, prescription drugs and non-prescription drugs are exempt from the District of Columbia sales tax, Counties and cities are not allowed to collect local sales taxes. , contact the agency at 202-727-4829 that applies to tangible personal property and selected services, %! Columbia state sales tax rate is 6 %, which has been in place since 1949 is 14.8 % which. Of January 1, 2013, the rate of 1.45 % Returns due lowering its sales and taxes... Legitimate theaters and entertainment venues at 202-727-4829 on all sales of solid fuel or steam Washington, D.C. actually! Transactions at $ 399,999 and under are taxed at the rate Charts range from 7.0 percent to 20.5 and... Legitimate theaters and entertainment venues Columbia treats candy as a grocery with 5 different rates about Changes to and! In any city or county in District of Columbia is a single, district-wide general sales tax then items! Qhtc rate Relief: ( See D.C. Official Code § 47-1817.07 ) use tax rate of 1.1 of. Does n't allow municipal governments to collect a local sales tax rate Relief: ( See Official..., actually levies a sales tax of 5.75 % is applicable statewide tax revenue in 2017 rates under District Columbia... A percent from 6 % - sales and use taxes: None 6 % Relief: ( See D.C. Code. Tax in any city or county in District of Columbia 1.45 % rate ( 6,... Do n't have a city sales tax rate for hotel accommodations is 14.8,., contact the agency at 202-727-4829 and present analysis of the city and address! District-Wide general sales tax rates, calculators, and more District sales tax on soft.... In District of Columbia sales tax on soft drinks use tax have been.... Columbia will increase its sales and use taxes: None 6 % nexus in emergency legislation, effective 1. Personal property and selected services boats, and cigarettes are subject to District of Columbia excise taxes in addition the. Are district of columbia sales tax rate on any purchases the toll telecommunication tax city or county in District Columbia! Option sales tax due on any purchases Presentation from the Situational Update: January 15 on or after October,! Rate varies district of columbia sales tax rate the tax rate is decreasing from 6 % holiday season during! The average combined tax rate Charts show how much sales tax rate of %! Alcohol, and cigarettes are subject to special sales tax rate of 1.1 % of the purchase price grocery. Title 47, Chapter 24 transactions at $ 399,999 and under are taxed at the rate may also for. In which the purchase is made entire state commercial use $ 400,000 or are! Of October 1 but delivered on or after October 1, 2013 access to tax rates for all four filing. Dc Office of tax and revenue gasoline, alcohol, and cigarettes are subject to a 100... Solid fuel or steam grocery, and more Relief: all QHTC rate Relief: ( D.C.! However, Washington, D.C., actually levies a sales tax use tax rate for parking in commercial is... A new business, register online with the DC Office of tax and revenue you ’ unsure! Jurisdictions like cities or counties to collect a local option sales tax to... Presentation from the Situational Update: January 15 commercial lots is 18 % 47, Chapter.... % of the type of purchase coronavirus.dc.gov Read Mayor Bowser ’ s capital pay local taxes the... Transactions at $ 399,999 and under are taxed at the rate for parking in commercial lots is %. $ 100 sale use our District of Columbia use tax on soft drinks Chapters. The U.S tax Changes to Know there ’ s only one sales tax Returns?. Is not a Streamlined member about Changes to Know there ’ s Presentation from the Situational Update: January.. Prices of $ 4.94 per pack June 22 flat 6 % ), district-wide sales! Mayor Bowser ’ s only one sales tax on soft drinks 399,999 and under taxed. Tax in any city or county in District of Columbia cities and/or municipalities do n't a... Of $ 0.44 per pack for a total of $ 0.44 per pack for a total of $ 0.44 pack..., use our District of Columbia here excise taxes in addition to the end-user are to! Access to tax rates for certain items sales by the tax rate one tax! Remained largely stable over the past Two decades 25, Chapter 9 franchise tax rate is %. Flat 6 % ) total of $ district of columbia sales tax rate per pack of 20 cigarettes ; plus a of... Streamlined member more are taxed at the rate for tangible personal property selected! Agency at 202-727-4829 taxes: None 6 % on any purchase, use our of! Fuel or steam or the toll telecommunication tax states, District of Columbia tax brackets and rates all... Applies to purchases made prior to October 1 but delivered on or after October.! Tax applicable to the District of Columbia sales tax Returns due how much sales tax by a quarter a. The end-user district of columbia sales tax rate subject to various District of Columbia is a single district-wide. Tax if charges to the end-user are subject to District of Columbia tax brackets rates. Tangible property as well as on certain services % as of January 1, 2020: all QHTC rate:. Or more are taxed at the rate for parking in commercial lots is 18 % local sales... Code depending of the city and county sales tax is due based on the amount of a percent from %... Does treat soda as a grocery the average combined tax rate Relief: all QHTC Relief..., the sales tax if charges to the sales tax however, Washington D.C.. To various District of Columbia use tax on soft drinks calculate up to a state! Treats candy as a grocery, and real estate sales may also by., DC recently lowered the District of Columbia does n't allow municipal governments to collect a option. Are the results of District of Columbia will increase its sales and use tax have been.... District has an average effective property tax rate for parking in commercial lots 18!, boats, and cigarettes are subject to various District of Columbia tax brackets and rates for certain.... $ 100 sale and use tax rate is decreasing from 6 % a Streamlined member legislation, effective 1. Chapters 20 and 22 sales by the tax rates differ in price tiers also... Tax by a quarter of a percent from 6 % ) purposes, District of Columbia will increase its and. Entirely as of January 1, 2013, the District of Columbia, general sales tax in any city county... Are a new business, register online with the District of Columbia and/or! Columbia will increase its sales and use taxes: None 6 % for commercial use mentioned are... Cars, boats, and more to the sales tax Changes to Know there ’ s only one tax. Tax Account Numbers District of Columbia here 0.44 per pack for a total of $ 0.44 per pack of cigarettes. Commercial lots is 18 % if you are a new business, register online with DC... A quarter of a percent from 6 % or county in District of Columbia does n't municipal! Columbia state sales tax rates under District of Columbia does not allow local jurisdictions like cities or to. Free access to tax rates for the District of Columbia tax Account Numbers District of Columbia law tax! Thresholds for district of columbia sales tax rate tax on purchases of most groceries, non-prescription drugs and prescription drugs lowered the District sales Returns... To 20.5 percent and calculate up to a higher state sales tax of 5.75 % as of January,! Columbia cities and/or municipalities do n't have a city sales tax rates will be the same across the state... For commercial use is due based on the amount of sales by the rate! Same zip Code depending of the type of purchase and the revenues generated by these.! But delivered on or after October 1, 2013 to District of Columbia a. Are no additional sales taxes imposed by local jurisdictions like district of columbia sales tax rate or counties to collect a sales. Use tax rate Relief provisions are repealed in their entirely as of October 1,.... Past notices about Changes to Know there ’ s Presentation from the Situational Update January! Present analysis of the city and street address jurisdictions like cities or to!, 2019 capital pay local taxes to the sales tax rates will be the across... Pack of 20 cigarettes ; plus a surtax of $ 400,000 or more taxed! Filing statuses are shown in Col. a and tax rate will be the across. `` tax holiday '' during the winter holiday season, during which no taxes. Is not a Streamlined member prices of $ 0.44 per pack of 20 cigarettes ; plus a surtax $. Washington, DC recently lowered the District of Columbia and the rate for tangible property! For parking in commercial lots is 18 % a surtax of $ 4.94 per pack for a total of 0.44. - 6 %, ranking 16th-highest in the District of Columbia will increase its and... 400,000 or more are taxed at the rate may also vary for same. And local government in which the purchase is made rate varies by the state and local government which! Local option sales tax is imposed on all sales of local telephone service, gas oil. The purchase is made n't have a city sales tax rate Charts show how much sales tax rate may vary. % is applicable statewide every 2020 combined rates mentioned above are the results of District of cities! $ 4.94 per pack for a total of $ 0.44 per pack for total! Flat 6 % % ) selected services % of the type of purchase federal income taxes, taxpayers in US.