Washington D.C. has a uniform 6% general sales tax with no local add-ons, but applies notably higher rates to hospitality and tourism: 10% on restaurant meals and alcohol, 14.95% on hotels, and 18% on parking — key revenue sources for a city with millions of tourists annually. Groceries, prescriptions, and most services are exempt.
District of Columbia sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 6.00% |
| Avg local add-on | 0.000% |
| Avg combined | 6.00% |
| Maximum combined | 6.00% |
Note: DC has no local sales tax. Different rates for restaurant/alcohol (10%), hotels (14.95%), and parking (18%).
District of Columbia sales tax by city
Combined state + local sales tax rates for major cities in District of Columbia:
| City | Combined Rate |
|---|---|
| Washington | 6.00% |
What's exempt in District of Columbia
Groceries
Exempt from District of Columbia state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
How District of Columbia sales tax is calculated
Sales tax in District of Columbia is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 6.00% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (6.00%) plus any local city or county add-ons. District of Columbia does not allow local sales taxes — the rate is uniform statewide at 6.00%.
Quick calculation examples at average rate 6.00%:
$100 item
$6.00 tax
$106.00 total
$250 item
$15.00 tax
$265.00 total
$500 item
$30.00 tax
$530.00 total
$1,000 item
$60.00 tax
$1060.00 total
Additional tax-free items in District of Columbia
Beyond the standard exemptions, District of Columbia also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the District of Columbia Department of Revenue for complete rules.
District of Columbia sales tax in context: rates, history, and neighbors
Washington DC's 6% general sales tax with no local add-ons is uniform across the District. Specialized higher rates apply to tourism-related categories: 10% on restaurant meals and alcoholic beverages, 14.95% on hotel rooms and short-term lodging, and 18% on commercial parking. DC has been at 6% since 2013 (raised from 5.75%). DC's broader-than-most digital goods taxation means streaming, downloaded software, and SaaS subscriptions are generally taxable. Compared to neighbors: Maryland (6%, no local), Virginia (5.3% combined), Pennsylvania (6.34% combined). DC residents shopping in Virginia or Maryland for major purchases save modestly. The DC tax structure is shaped by being a tourist destination — 25 million annual visitors generate massive hotel/restaurant tax revenue that supports city services without burdening residents with higher property taxes.
Online shopping & District of Columbia sales tax
DC enforces economic nexus — online sellers with $100,000+ or 200+ transactions in DC must collect and remit DC sales tax. DC also taxes digital goods including streaming services, digital downloads, and online subscriptions at 6%. Marketplace facilitators like Amazon collect and remit DC tax on all third-party seller sales.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect District of Columbia sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your District of Columbia state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much District of Columbia sales tax on common purchases?
Using District of Columbia's average combined rate of 6.00%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | $7.20 | $127.20 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $59.94 | $1058.94 |
| Laptop / tablet | $1,299 | $77.94 | $1376.94 |
| New car ($35,000) | $35,000 | $2100.00 | $37100.00 |
| Home appliance | $1,500 | $90.00 | $1590.00 |
| Restaurant meal | $60 | $3.60 | $63.60 |
Based on District of Columbia's average combined rate of 6.00%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in District of Columbia: business guide
If you sell goods or taxable services to District of Columbia customers, here's what you need to know:
- Registration: Register for a District of Columbia sales tax permit/license through the District of Columbia Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in District of Columbia annual sales or 200+ transactions, you must collect District of Columbia sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). The rate is uniform at 6.00% statewide.
- Destination vs origin sourcing: District of Columbia uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your District of Columbia sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the District of Columbia Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit District of Columbia sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a District of Columbia resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): District of Columbia is not currently a member of the Streamlined Sales Tax (SST) Agreement — check District of Columbia Department of Revenue for filing specifics.
District of Columbia-specific business compliance details
DC businesses register with the Office of Tax and Revenue (OTR) at mytax.dc.gov for a Sales Tax Account. Filing frequency: monthly for $5,000+/month tax, quarterly for moderate, annually for very small. Out-of-state sellers with $100,000+ in DC sales (or 200+ transactions) must collect DC tax (economic nexus, since 2019). DC requires marketplace facilitators to collect on third-party sales. DC also taxes digital goods and SaaS subscriptions broadly — businesses selling streaming, software, or digital downloads to DC customers must collect 6%. DC is uniquely both a city and state-equivalent for tax purposes — federal employees, contractors, and DC-based businesses all interact with the same OTR. Penalties: 5% per month (capped at 25%) plus interest.
District of Columbia sales tax frequently asked questions
How much is DC's restaurant and alcohol sales tax?
Washington DC charges 10% on restaurant meals, carry-out food, and alcoholic beverages — significantly higher than the standard 6% general rate. This applies to any food or drink sold ready-to-eat, including coffee shops and fast food. Grocery stores selling packaged food (not prepared) charge 0% — DC exempts unprepared groceries.
What is DC's hotel tax rate?
DC hotels charge a combined 14.95% tax rate, consisting of the general 6% sales tax + a 8.95% occupancy tax. This is one of the highest hotel tax rates in the US, reflecting DC's status as a major tourism and business travel destination with a strong demand for government funding through visitor taxes.
Are streaming services taxable in DC?
Yes — Washington DC taxes digital goods and services including streaming subscriptions (Netflix, Disney+, Spotify, Hulu) at the standard 6% sales tax rate. DC was an early adopter of digital goods taxation and takes a broad view — if you subscribe to a streaming or digital service and have a DC billing address, DC sales tax applies.
District of Columbia city paycheck calculators
If you live or work in a District of Columbia city, see our city-specific paycheck calculators for take-home pay including any local income tax, plus local employer and cost-of-living context: