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Tax Summary
- District of Columbia assesses income tax on a sliding scale from 4.5% to 8.7% depending upon how much you earn.
- Some renters and homeowners who make less than $20,000 or less may be eligible for a tax credit.
- Personal exemption for a single individual is $1,370. Exemption for a married couple is $2,740. Dependents earn an exemption of $1,370 each.
- Sales tax in the District of Columbia is 5.75%, although the city of Washington levies five different rates to take advantage of the status of the city as a tourist center and as a hub of non-resident workers. These taxes include:
- 5.75% for personal property
- 9% for alcohol not sold for consumption on site
- 10% for rental vehicles, calling cards and all restaurant food
- 12% for parking
- 14.5% for hotel and motel accommodations
- Property taxes are divided into three classes: Residential Real Property, Commercial and Industrial Real Property and Vacant Real Property. The Assessment Division of the Office of Tax and Revenue makes assessments.
- Property tax relief programs are available for first time home buyers, senior citizens and owners of historic properties.
- Many sales and property taxes are exempt in the District of Columbia due to military or diplomatic exemptions.
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