Washington, D.C. Local Tax Guide (2026)
For DC residents there is only one income tax layer, administered by the DC Office of Tax and Revenue (OTR) on Form D-40. Seven brackets run from 4% up to 10.75% on taxable income over $1,000,000. No county or city add-on exists on top.
Verified 2026-08-21 against official city / state sources. Where a 2026 rate could not be individually re-verified, the verified year and source are stated instead of a guess.
Quick answer (Washington, D.C., 2026)
Unusual case: Washington, D.C. has no separate "local" tax — the DC income tax IS the city’s income tax, because the city is the state. It is graduated from 4% to 10.75% (tax years beginning after 2021). DC does not tax nonresidents’ wages. Source: DC Office of Tax and Revenue — DC Individual and Fiduciary Income Tax Rates (retrieved 2026-08-21).
Rate schedule
All filing statuses (tax years beginning after Dec 31, 2021)
| 4.00% | $0 – $10,000 |
| 6.00% | $10,001 – $40,000 |
| 6.50% | $40,001 – $60,000 |
| 8.50% | $60,001 – $250,000 |
| 9.25% | $250,001 – $500,000 |
| 9.75% | $500,001 – $1,000,000 |
| 10.75% | Over $1,000,000 |
What you actually pay
Because DC is both the city and the state, there is no additional local income tax layer on top of the DC rate — unlike NYC (state + city) or Philadelphia (state + wage tax).
Federal law prohibits DC from taxing the wages of nonresidents who work in the city but live in Maryland, Virginia, or elsewhere. Those workers pay their home state only.
The 7-bracket schedule (4%–10.75%) has been in effect for tax years beginning after December 31, 2021, so it applies to 2025 and 2026.
DC’s standard deduction for 2025 is $15,000 single / $30,000 married filing jointly.
Because the city and the state are one, there is no second layer to reconcile: a DC resident files a single Form D-40 and is done. Compare that with NYC (state + city on one return) or Philadelphia (state + city wage tax withheld separately).
DC employers withhold DC income tax for resident employees. The withholding is reconciled on Form D-40; there is no separate municipal withholding form.
The DC income tax is a state and local tax for federal purposes, so it counts toward the SALT deduction, subject to the 2026 cap ($40,400 married-joint).
Nonresidents are not taxed on DC wages by federal law, but DC may still tax nonresidents on other DC-source income, such as rent from DC property or income from a DC business.
This guide summarizes structural facts for planning. It is not a substitute for the official District of Columbia tax code or a licensed preparer.
Frequently asked questions
Related state guide
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Tax outcomes depend on your full facts, filing history, and jurisdiction-specific rules that change yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Sources & methodology
- DC Office of Tax and Revenue — DC Individual and Fiduciary Income Tax Rates — DC Office of Tax and Revenue