State Tax Laws - District of Columbia

Personal tax rates range from 4% to 8.95% with a personal exemption of $1675 per person and a standard deduction of $2,000, doubled when married filing a joint return. Social security is exempted, as is the first $3,000 of military and government pensions. Sales taxes are 5.75%

Corporations are taxed at a flat 9.975%. DC's corporate tax law is full of credits and deductions for various types of businesses. Perhaps because the US government is so close at hand, the state tax system is trying to out-complicate even it's big brother the IRS. DC even requires sole proprietorships to file a separate DC franchise tax return. For more information see:

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