Washington DC Taxes

Washington DC Tax Guide

Washington DC Personal Income Tax

According to the Washington DC tax guide there are three income slabs for calculating income tax in Washington, D.C.  The slabs and rates are as follows:

  • 4 percent on the first $10,000 of taxable income 
  • 6 percent on taxable income between $10,000 and $40,000
  • 8.5 percent on taxable income above $40,000

There are provisions for excluding certain items for tax purposes.  For instance income from social security and also there is an exemption for retired military personal, people earning pension income and annuity income from either the Federal government or District of Columbia subject to a $3000 limit.

The due date for filing returns is April 15.  If this date falls on a weekend or holiday, the next working day is considered as the due date.

House owners whose income is less than $20,000 qualify for a tax credit for which they have to fill a certain form.

Washington DC Sales Tax

According to the Washington, DC tax guide, the sales tax in the District of Columbia was hiked to 6 percent in 2009.  But keeping in mind the fact that Washington is popular with tourists, there is a sales tax with different rates for different items:

  • 5.75 percent for tangible personal property
  • 9 percent for alcohol sold for consumption outside the place it is purchased
  • 10 percent for restaurant meals, take away food, rental cars and phone cards
  • 12 percent for commercial parking
  • 14.5 percent for hotel rooms

Certain items are exempted from sales tax in the District of Columbia such as medicines and groceries.

Washington DC Taxes on Real Estate and Personal Property

In Washington, DC, properties are assessed by departments like the Assessment Division and Office of Tax and Revenue.

Properties are classified into 3 types:

Class 1: All residential real estate belongs to this class.
Class 2: Commercial and industrial real estate falls under this class.
Class 3: Vacant property comes under this class.

Class 1 property, that is, property occupied by owners is taxed at a lower rate. 

Rates may be changed from year to year and the latest rates can be found in the website of the Office of Tax and Revenue.

Tax has to be paid in two equal installments, one due on March 31 and the other due on September 15.  Certain properties like historical property and property owned by senior citizens are given tax credits or exemptions.

It should be noted that much of the property in Washington, DC belongs to the government and hence is exempt from tax.

Washington DC Inheritance and Estate Taxes

District of Columbia imposes its own estate tax but does not collect any inheritance tax.

About Tax in Washington, DC

According to the Washington DC tax guide, businesses which grant paid leave to employees for donating organs or bone marrow qualify for tax credits.

Where to Mail FEDERAL IRS Tax Forms Within Washington State:

IRS Form If You ARE NOT Enclosing a Payment, Use This Address: If You ARE Enclosing a Payment, Use This Address:
1040: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0002
Internal Revenue Service
P.O. Box 7704
San Francisco, CA 94120-7704
1040A: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0015
Internal Revenue Service
P.O. Box 7704
San Francisco, CA 94120-7704
1040EZ: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0014
Internal Revenue Service
P.O. Box 7704
San Francisco, CA 94120-7704

Washington Tax Help

1-800-647-7706

Hearing Impaired:
TTY 1-800-451-7985