Washington D.C., DC Taxes 2025
Complete local tax guide and OBBBA calculator
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Washington D.C. Tax Overview 2025
DC has its own income tax. OBBBA provides significant federal relief.
Local Income Tax
4% - 10.75%
City/county rate
Sales Tax
6.00%
State + local
Property Tax
0.57%
Effective rate
Median Home
$645,000
Home value
💼 Washington D.C. Local Income Tax
Washington D.C. imposes a local income tax of 4% - 10.75% on residents. This is in addition to any state income tax you may owe to your state.
Local income taxes are common in Ohio, Pennsylvania, and a few other states. They're typically withheld from your paycheck if you work in Washington D.C., regardless of where you live.
Total Income Tax Burden in Washington D.C.
🛒 Washington D.C. Sales Tax 2025
The combined sales tax rate in Washington D.C. is 6.00%. This includes both the state sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Washington D.C.. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on state law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.00 | $53.00 |
| $100 | $6.00 | $106.00 |
| $500 | $30.00 | $530.00 |
| $1,000 | $60.00 | $1,060.00 |
🏠 Washington D.C. Property Tax 2025
The average effective property tax rate in Washington D.C. is 0.57%. Based on the median home value of $645,000, the typical homeowner pays approximately $3,677 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Washington D.C. based on school district and other taxing authorities.
Estimated Annual Property Tax in Washington D.C.
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $1,140 | $95 | ✓ Yes |
| $300,000 | $1,710 | $143 | ✓ Yes |
| $400,000 | $2,280 | $190 | ✓ Yes |
| $500,000 | $2,850 | $238 | ✓ Yes |
| $750,000 | $4,275 | $356 | ✓ Yes |
| $1,000,000 | $5,700 | $475 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Washington D.C. Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Washington D.C. Residents
High earners benefit from SALT cap increase; service workers from tips.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Washington D.C. resident.
Available OBBBA Deductions:
Calculate Your Washington D.C. Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Washington D.C. resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Washington D.C.?
The combined sales tax rate in Washington D.C. is 6.00%. This includes both state and local sales taxes.
Does Washington D.C. have a local income tax?
Washington D.C. has a local income tax of 4% - 10.75%. This is in addition to any state and federal income taxes.
What is the property tax rate in Washington D.C.?
The average effective property tax rate in Washington D.C. is 0.57%. On a home worth $645,000, you'd pay approximately $3,677 per year.
How do OBBBA deductions benefit Washington D.C. residents?
High earners benefit from SALT cap increase; service workers from tips. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.