The District of Columbia imposes a 6-bracket graduated income tax from 4% to 10.75% for TY2026, with a top rate among the highest in the nation. DC uses the same bracket thresholds for all filing statuses and conforms to the federal standard deduction ($15,700 single / $31,400 MFJ). DC uses federal AGI as its tax computation starting point (D-40 Line 1), meaning above-the-line federal adjustments generally reduce DC taxable income. DC does not tax Social Security benefits. As a single jurisdiction, there are no additional local income taxes.
Income Tax
4%–10.75% (6 brackets)
Top Rate
10.75% (above $500K)
Standard Deduction (Single)
$15,700
Social Security
Not Taxed
DC Income Tax Brackets 2026
DC applies identical bracket thresholds to all filing statuses. All brackets confirmed for TY2026 by the DC Office of Tax and Revenue.
DC Taxable Income (All Filing Statuses)
Rate
$0 – $10,000
4.00%
$10,000 – $40,000
6.00%
$40,000 – $60,000
6.50%
$60,000 – $250,000
8.50%
$250,000 – $500,000
9.25%
$500,000+
10.75%
The 8.5% bracket - which covers income from $60,000 to $250,000 - is notable because it applies to a broad range of DC earners including many middle-income residents. DC taxes capital gains as ordinary income at these same graduated rates, with a top capital gains rate of 10.75%.
DC Standard Deduction 2026
DC conforms to the federal standard deduction for TY2026. DC filers deduct $15,700 (single or MFS), $31,400 (MFJ), or $23,500 (head of household) before applying DC's graduated rates. DC has no personal exemption. Because DC starts its tax calculation from federal AGI and then applies the same standard deduction as the federal return, the overall starting framework is similar to the federal calculation - but DC then applies its own graduated rates and any DC-specific modifications.
How DC Conforms to Federal Tax Law (OBBBA & Federal AGI)
DC's income tax generally conforms to the Internal Revenue Code as amended. DC Form D-40 uses federal adjusted gross income (AGI) as the starting point for DC tax computation (D-40 Line 1). This structural feature means that above-the-line federal deductions - adjustments that reduce federal AGI before itemizing or taking the standard deduction - generally also reduce DC taxable income.
Under the One Big Beautiful Budget Act (OBBBA), deductions for qualified tip income and qualified overtime compensation are above-the-line adjustments reducing federal AGI. Because DC starts from federal AGI, these deductions are likely to flow through to DC. However, DC then applies its own modification schedule, and explicit published guidance from the DC Office of Tax and Revenue (OTR) has not yet been issued confirming OBBBA conformity. This section will be updated when DC OTR publishes formal guidance.
The District of Columbia uses a 6-bracket graduated income tax for TY2026, with the same bracket thresholds applying to all filing statuses. The brackets are: 4% on income up to $10,000; 6% on $10,000–$40,000; 6.5% on $40,000–$60,000; 8.5% on $60,000–$250,000; 9.25% on $250,000–$500,000; and 10.75% on income above $500,000. All brackets are confirmed for TY2026 by the DC Office of Tax and Revenue (OTR). DC does not vary bracket thresholds by filing status.
How does DC's top income tax rate of 10.75% compare nationally?
DC's top income tax rate of 10.75% is among the highest in the country, comparable to California (top rate 13.3%), New Jersey (10.75%), and Oregon (9.9%). The 10.75% rate applies to income above $500,000. DC's 8.5% bracket - which applies to income between $60,000 and $250,000 - is also relatively high for middle-to-upper income earners compared to most states. DC's high rates reflect its unique status as a single-jurisdiction, city-equivalent government that funds services typically split between city and state governments elsewhere.
What is DC's standard deduction for 2026?
The District of Columbia conforms to the federal standard deduction for TY2026. The DC standard deduction is $15,700 for single filers, $31,400 for married filing jointly, and $23,500 for head of household. DC has no personal exemption. Because DC uses federal AGI as its starting point (D-40 Line 1) and then applies the federal standard deduction, many of the same deductions and adjustments that reduce your federal return also reduce your DC tax liability.
How does the OBBBA affect DC taxes - tips, overtime, and senior deductions?
DC's OBBBA conformity status is not yet officially confirmed by DC OTR. However, DC generally conforms to the IRC as amended, and the DC D-40 form uses federal AGI as its computation starting point (D-40 Line 1). Because OBBBA deductions for tips and overtime are above-the-line adjustments that reduce federal AGI, they are likely to flow through to reduce DC taxable income as well. DC then applies its own modification schedule after federal AGI, so post-AGI adjustments do not automatically carry through. Official DC OTR guidance on OBBBA conformity has not yet been published. Monitor the DC OTR website for explicit guidance before relying on OBBBA deductions for DC filing purposes.
Does DC have local income taxes in addition to the DC income tax?
No. The District of Columbia is a single jurisdiction - there are no additional municipal or local income taxes layered on top of the DC income tax. Unlike Maryland (which has county income tax add-ons) or New York City (which has a separate city income tax), all DC residents and workers pay only the DC income tax. DC does not have county or sub-jurisdictional tax authorities.
Does DC tax Social Security or retirement income?
DC does not tax Social Security benefits. Social Security income is exempt from DC income tax. DC does tax most pension and retirement income, but provides a pension and annuity exclusion for qualifying income. The 2026 exclusion amount and eligibility requirements should be verified with the DC Office of Tax and Revenue, as these details are pending final confirmation for TY2026.
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