What is Washington, D.C. Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live in Washington, D.C., or were a D.C. resident for part of the year, you may need to file a District of Columbia individual income tax return along with your federal return. You may also need to file if you “maintained a place of abode” in D.C. for 183 days or more during the year, even if your permanent home was elsewhere.

D.C. uses a progressive income tax system with seven brackets, so the rate you pay depends on your taxable income. This guide explains what that means, including Washington, D.C.’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies D.C.’s tax rules to help you accurately prepare your D.C. return alongside your federal return.

What is the Washington, D.C. individual income tax?

Washington, D.C. individual income tax generally applies if D.C. is your permanent home or if you live in D.C. for 183 days or more during the year. Part-year residents may also owe D.C. income tax on income they received while living in the District. It is collected by the D.C. Office of Tax and Revenue (OTR) and helps fund District services.

D.C. taxes individual income using a progressive bracket system. For tax year 2025, D.C.’s top marginal rate is 10.75% on taxable income over $1,000,000. D.C. taxable income generally starts with federal adjusted gross income, with D.C.-specific additions and subtractions applied on Form D-40 and Schedule I.

Washington, D.C. income tax rates and tax brackets

D.C.’s income tax brackets apply to taxable income for 2025. The rates are the same across all filing statuses. View D.C.’s individual income tax rates.

Taxable Income	Tax Rate
Up to $10,000	4%
$10,001-$40,000	6%
$40,001-$60,000	6.50%
$60,001-$250,000	8.50%
$250,001-$500,000	9.25%
$500,001-$1,000,000	9.75%
Over $1,000,000	10.75%

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.

Washington, D.C. standard deduction

For tax year 2025, D.C. has its own standard deduction amounts, which differ from the federal amounts. However, your deduction method generally follows your federal return — for example, if you take the federal standard deduction, you take the D.C. standard deduction, and if you itemize federally, you must itemize on your D.C. return.

Filing Status	Standard Deduction (2025)
Single	$15,000
Married Filing Separately	$15,000
Married Filing Jointly	$30,000
Head of Household	$22,500

D.C. taxpayers who take the standard deduction and were born before Jan. 2, 1961, or are blind may qualify for an additional standard deduction of $1,600 ($2,000 if single, head of household, or a dependent claimed by someone else and not married).

D.C. also has its own rules for calculating allowable itemized deductions, including adjustments for state and local taxes. Certain itemized deductions may also be limited if your D.C. adjusted gross income is more than $200,000 ($100,000 if married filing separately).

Washington, D.C. exemptions, deductions, and credits

D.C. offers several subtractions and credits that may reduce what you owe. Common items include:

D.C. Earned Income Tax Credit (EITC) — for tax year 2025, eligible taxpayers with a qualifying child can generally claim a D.C. EITC equal to 100% of their federal EITC. D.C. uses a separate calculation for eligible filers without a qualifying child, and certain taxpayers with an ITIN may also qualify.
Social Security exclusion — Social Security benefits are not taxable in D.C.
DC College Savings Plan subtraction — subtract contributions up to $4,000 per person ($8,000 for joint filers if each spouse is an account owner).
Credit for income tax paid to another state — D.C. residents may be able to claim a credit if the same income is taxed by both D.C. and another state. You’ll calculate the credit using Calculation K and report it on Schedule U.
Homeowner/Renter Property Tax Credit (HRPTC) — a refundable credit for eligible D.C. residents, claimed on Schedule H.

For a full list of D.C. income tax subtractions, deductions, and credits, see the D.C. Office of Tax and Revenue.

Washington, D.C. taxable vs. nontaxable income

Part-year D.C. residents can generally subtract income received during the part of the year they were not D.C. residents when calculating D.C. taxable income. Social Security benefits, interest on U.S. debt obligations, and certain other subtractions (such as contributions to a DC College Savings Plan) may also reduce D.C. taxable income.

Washington, D.C. tax changes for 2025

The D.C. Earned Income Tax Credit increased for 2025. The credit increased from 70% of the federal EITC in 2024 to 100% for tax year 2025 (although special calculation rules apply to filers without a qualifying child).
D.C. established its own basic standard deduction amounts. Previously, the District aligned with federal standard deductions amounts.
D.C.’s filing requirements changed. Beginning with tax year 2025, you may need to file a D-40 if your gross income reaches the D.C. filing threshold for your filing status, even if you aren’t required to file a federal income tax return.
D.C. did not conform to several federal Working Families Tax Cut Act (One Big Beautiful Bill or OBBB) provisions for 2025. D.C. does not allow the higher federal basic standard deduction or the new federal deductions for qualified tips, overtime pay, personal car loan interest, or the enhanced senior deduction. D.C. also decoupled from certain federal business provisions.
The D.C. Child Tax Credit was repealed for tax year 2025.
Interest from certain out-of-state municipal bonds is taxable in the District beginning in 2025.
The Homeowner/Renter Property Tax Credit increased. For 2025, the maximum Schedule H credit is $1,425, with income limits of $66,000 for taxpayers under age 70 and $90,000 for taxpayers age 70 or older.

For a full list of 2025 changes, see page 2 in the 2025 D-40 Booklet.

FAQs

Does Washington, D.C. have an income tax?

Yes, Washington, D.C. has an individual income tax.

What is the Washington, D.C. income tax rate?

D.C. uses a progressive bracket system for tax year 2025, with rates ranging from 4% to 10.75% depending on your taxable income. The same bracket schedule applies regardless of filing status.

What are the Washington, D.C. income tax brackets for 2025?

D.C. has seven income tax brackets for tax year 2025, with rates from 4% to 10.75%. See the Washington, D.C. income tax brackets table above for exact taxable income ranges and rates.

How does Washington, D.C. income tax work?

D.C. individual income tax generally starts with your federal adjusted gross income. You then apply D.C.-specific additions and subtractions on Form D-40 and Schedule I to calculate your D.C. adjusted gross income. After subtracting your allowable standard deduction or itemized deductions, D.C.’s tax rates are applied to your taxable income. Credits such as the D.C. EITC may further reduce your tax or increase your refund.

Do I have to file a Washington, D.C. tax return?

You may need to file a D.C. tax return (Form D-40) if you’re a full-year or part-year D.C. resident, or if you lived in D.C. for 183 days or more during the year and meet D.C.’s filing requirements. For tax year 2025, you may need to file even if you aren’t required to file a federal return.

What is the Washington, D.C. standard deduction for 2025?

D.C.’s basic standard deduction for tax year 2025 is $15,000 for single and married filing separately filers, $22,500 for head of household filers, and $30,000 for married filing jointly filers. See the Washington, D.C. standard deduction table above for amounts by filing status.

How much is Washington, D.C. state income tax?

There isn’t one Washington, D.C. state income tax amount that applies to everyone. How much D.C. income tax you owe depends on your D.C. taxable income, subtractions such as the Social Security exclusion, credits, and other factors. Use the D.C. income tax brackets above as a starting point.

Why is my Washington, D.C. tax return different from my federal return?

D.C. generally uses federal tax information as a starting point, but it has its own rules for certain income, deductions, and credits. For example, D.C. excludes taxable Social Security benefits, uses its own standard deduction amounts for 2025, and does not allow several new federal deductions introduced by the OBBB, including those for qualified tips, overtime pay, car loan interest, and the enhanced senior deduction. D.C. also has its own EITC rules. These differences can cause your D.C. taxable income, deductions, credits, or refund to differ from your federal return.

The good news is that our tax software automatically applies D.C.’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information on D.C. tax law, visit the D.C. Office of Tax and Revenue. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

Washington, D.C. has a progressive income tax with seven brackets for 2025, topping out at 10.75% on taxable income over $1 million. D.C. also has it’s own standard deduction amounts, subtractions, and credits that can reduce what you owe.

When you’re ready to file, TaxAct can help you prepare your federal and D.C. returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Washington, D.C. tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

D.C. Office of Tax and Revenue. “DC Individual and Fiduciary Income Tax Rates.” Accessed 24 Aug. 2026.
D.C. Office of Tax and Revenue. “2025 D-40 Individual Income Tax Forms and Instructions.” Accessed 24 Aug. 2026.
D.C. Office of Tax and Revenue. “DC EITC.” Accessed 24 Aug. 2026.
D.C. Office of Tax and Revenue. “EITC FAQs.” Accessed 24 Aug. 2026.
D.C. Office of Tax and Revenue. “Individual Income Tax Forms.” Accessed 24 Aug. 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My District of Columbia Tax Refund?.” TaxAct Blog.