State guide · DC
District of Columbia sales tax and property tax
One jurisdiction, no county or city layer, and seven sales tax rates that depend on what you buy, from groceries at nothing to parking at the top of the scale.
Facts read on official District of Columbia pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $4,594
- Effective property rate
- 0.63% · #36 of 51
The District of Columbia charges 6% on most goods, and that is the whole rate: DC is a single taxing jurisdiction, so no county or city tax is added. The increase to 7% written into the D.C. Code has been postponed again, and the Office of Tax and Revenue (OTR) states that 6% remains in force through September 30, 2027. What varies is the item. Soft drinks pay 8%, restaurant meals and prepared food 10%, rental cars and alcohol bought to take away 10.25%, hotel rooms 15.95% and parking 18%. Groceries eligible for SNAP are exempt, and so are medicines, prescribed or not. On property, the District taxes homes directly at $0.85 per $100 of value, reassessed every year: the median owner paid $4,594 in 2024 on a $733,400 home (Census ACS), an effective rate of 0.63%, ranked 36 of 51. A $91,950 homestead deduction and a 10% yearly assessment cap protect owner-occupants.
Total to pay
$106.00
Sales tax $6.00 · 6% of the price
| Price before tax | $100.00 |
| State tax · 6% | $6.00 |
| Local tax · not charged on this item | $0.00 |
| Total | $106.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in District of Columbia
Because no other layer exists, the rate on a DC receipt is fixed by the category of the sale. An $800 phone owes $48.00 at the general rate. A $90 dinner owes $9.00 at the restaurant rate, a $25 day in a garage $4.50, and a $320 hotel night $51.04. The hotel figure is a temporary rate that the Hotel Surtax Amendment Act of 2025 extended through September 30, 2027. Commercial bingo was added at 7.5% on October 1, 2025.
The general rate was scheduled to rise and has been held back twice. The Sales Tax Increase Delay Amendment Act of 2025 first held it at 6% through September 30, 2026; OTR now says the 7% rate is postponed and 6% remains through September 30, 2027, even though the codified text of section 47-2002 still shows 7% from October 1, 2026. Check OTR's notices before planning a large purchase late in 2027.
The food rule follows the SNAP definition: groceries a SNAP card could buy are excluded from sales tax, except food prepared to be eaten right away and soft drinks. Medicines and drugs are exempt whether or not a doctor prescribed them,, so over-the-counter remedies carry no tax either. Street and mobile food vendors charge 10% on food and 6% on other items, with a minimum of $375 per quarter. Use tax applies at the same rates to taxable goods bought outside the District for use in it.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6% | no | District-wide general rate of 6%; there are no separate local taxes. The scheduled increase to 7% has been postponed: OTR states the general rate remains 6% through September 30, 2027. Higher rates apply to restaurant meals (10%), off-premises alcohol and rental cars (10.25%), hotels (15.95%) and parking (18%). |
| Groceries (food for home) | 0% | no | SNAP-eligible food or drink is excluded from retail sales, except food prepared for immediate consumption and soft drinks (soft drinks are taxed at 8%). |
| Clothing | 6% | no | Clothing is taxed at the 6% general rate. |
| Prescription drugs | 0% | no | |
| Soft drinks | 8% | ||
| Restaurant meals, prepared food and on-premises alcohol | 10% | ||
| Rental vehicles; off-premises alcohol | 10.25% | ||
| Hotel rooms and transient lodging | 15.95% | Temporary rate extended through September 30, 2027. | |
| Parking or storing of motor vehicles | 18% | ||
| Commercial bingo | 7.5% | Since October 1, 2025. |
Scheduled by law: October 1, 2027: Postponed increase of the general rate to 7%: OTR says 6% remains through September 30, 2027. (The codified D.C. Code § 47-2002 still reads 7% from October 1, 2026.) (7%)source; October 1, 2027: The temporary 15.95% hotel rate is extended through September 30, 2027 (Hotel Surtax Amendment Act of 2025).source.
Local sales taxes
District of Columbia has no local sales taxes.
Sales tax holidays in 2026
No general sales tax holiday in 2026.
Worth knowing about District of Columbia sales tax
- The increase of DC's general sales tax to 7% has been postponed; the rate stays 6% through September 30, 2027. source
- The Sales Tax Increase Delay Amendment Act of 2025 had already kept the rate at 6% through September 30, 2026. source
- DC applies seven different rates, from 6% on general goods to 18% on parking. source
- Medicines and drugs are exempt whether or not sold on prescription. source
- Street and mobile food vendors pay 10% on food and 6% on other sales, with a minimum of $375 per quarter. source
- Late returns incur a 5% to 25% penalty plus 10% annual interest compounded daily. source
Property tax in District of Columbia
No county stands between a DC homeowner and the tax collector: the District government levies and collects property tax itself, and the Council sets the rate for each class every year. OTR reassesses every property annually at estimated market value. Residential property sits in Class 1A at $0.85 per $100 of value. One- and two-unit homes worth more than $2.558 million fall in Class 1B, where the part above that amount is taxed at $1.00. Commercial property pays $1.65 to $1.89, while vacant property pays $5.00 and blighted property $10.00, rates designed to push owners to use or repair it.
On the Census median home of $733,400, the Class 1A rate gives $6,233.90 before relief. The homestead deduction removes $91,950 of assessed value for tax year 2026, so the same owner-occupant owes $5,452.33, a saving of $781.58. Apply once with form ASD-100 on MyTax.DC.gov; approval between October 1 and March 31 gives the full year, between April 1 and September 30 half of it. The Assessment Cap Credit then limits the taxable increase to 10% a year, 2% for owners aged 65 or older and disabled owners, who may also qualify for a 50% cut in their tax within the income limit, $159,750 for tax year 2025.
At the Census ratio of 0.63%, a $600,000 condo pays about $3,756 a year. The bill comes in two halves: the first, covering October to March, is due by March 31, and the second, covering April to September, by September 15. Disabled veterans have their own homestead deduction, which cannot be combined with the regular one, the senior relief or the cap credit.
Property tax on a home in District of Columbia
Typical bill per year
$4,591
| Per month | $383 |
| Median effective rate in District of Columbia | 0.63% |
| Median bill paid | $4,594 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | District of Columbia |
|---|---|
| Median home value (owner-occupied) | $733,400 |
| Median real estate taxes paid | $4,594 |
| with a mortgage | $4,745 |
| without a mortgage | $3,984 |
| Effective rate (tax ÷ value) | 0.63% |
| Rank by effective rate (1 = highest) | 36 of 51 |
| Rank by median bill | 11 of 51 |
How the taxable value is set
Property is assessed annually at estimated market value. Tax = assessed value / 100 x class rate: Class 1A residential $0.85 per $100; Class 1B (up to two units) $0.85 on the first $2.558 million and $1.00 above; commercial $1.65 to $1.89; vacant $5.00; blighted $10.00. Homesteaded owners cannot be taxed on more than a 10% yearly increase in assessed value (2% for seniors and disabled owners). Who levies the tax: The District government levies and collects real property tax directly (OTR); rates per class are set each year by the Council of the District of Columbia.
Payment calendar: Two installments: first half (October 1 - March 31) due by March 31; second half (April 1 - September 30) due by September 15.
Other property tax relief
- Senior Citizen or Disabled Property Owner Tax Relief. Cuts the property tax by 50% for owners aged 65+ or disabled who own at least 50% of the home, within the household income threshold ($159,750 for tax year 2025). source
- Assessment Cap Credit. Homesteaded property is not taxed on more than a 10% annual increase in assessed value; 2% for senior and disabled owners. source
- Disabled Veterans' Homestead Deduction. Separate deduction for disabled veterans owning at least 50% of the home; not combinable with the regular homestead deduction, senior relief or cap credit. source
Worth knowing about District of Columbia property tax
- OTR's example: a $500,000 home in Class 1A owes $4,250 a year before the homestead deduction and credits. source
- Class 1B taxes the part of a one- or two-unit home's value above $2.558 million at $1.00 per $100 instead of $0.85. source
- The homestead deduction is $91,950 for tax year 2026, worth $781.58 a year. source
- Vacant property is taxed at $5.00 and blighted property at $10.00 per $100, to push owners to use or repair it. source
- DC reassesses all real property every year. source