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District of Columbia · the numbers
District of Columbia figures at a glance for 2026
The DC numbers for the 2026 return in one place: the seven brackets and the tax at each line, the District’s own standard deduction, the credits and their income limits, the 529 subtraction, the estimated-payment rules, the estate tax line, the property tax figures and the dates, with a short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from DC Office of Tax and Revenue (OTR), Office of the Chief Financial Officer sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a District of Columbia practitioner
Two things about the DC numbers matter more than any single figure. First, the brackets are not indexed and are the same for every filing status, so a married couple reaches 8.5% at the same $60,000 of taxable income a single filer does. Second, the Office of Tax and Revenue publishes its indexed figures for a tax year in a notice each October 1 and in the D-40 booklet that follows, and as of early November 2026 neither the October 1, 2026 notice nor the 2026 booklet had appeared. Where a 2026 figure is still unpublished, the table shows the 2025 figure and says so.
The rates
| DC taxable income | Tax | Rate on the next dollar |
|---|---|---|
| Not over $10,000 | 4% of taxable income | 4% |
| $10,000 to $40,000 | $400 plus 6% of the excess over $10,000 | 6% |
| $40,000 to $60,000 | $2,200 plus 6.5% of the excess over $40,000 | 6.5% |
| $60,000 to $250,000 | $3,500 plus 8.5% of the excess over $60,000 | 8.5% |
| $250,000 to $500,000 | $19,650 plus 9.25% of the excess over $250,000 | 9.25% |
| $500,000 to $1,000,000 | $42,775 plus 9.75% of the excess over $500,000 | 9.75% |
| Over $1,000,000 | $91,525 plus 10.75% of the excess over $1,000,000 | 10.75% |
From the Department’s rate page. The same table applies to single, head of household, married filing jointly and married filing separately. Capital gains, dividends, interest and pension income are taxed at these rates; there is no preferential rate. There is no local income tax, because the District is the locality.
The core figures
| Item | 2025 | 2026 |
|---|---|---|
| Starting point | Federal AGI | Federal AGI |
| Top rate | 10.75% | 10.75% |
| Rate on taxable income $60,000 to $250,000 | 8.5% | 8.5% |
| DC standard deduction, single / married filing separately / dependent | $15,000 | To come (indexed from $15,000) |
| DC standard deduction, head of household | $22,500 | To come (indexed from $22,500) |
| DC standard deduction, married filing jointly / surviving spouse | $30,000 | To come (indexed from $30,000) |
| Additional standard deduction, 65 or older or blind, per condition | $1,600; $2,000 if single or head of household | To come (verify) |
| Personal and dependent exemptions | None | None |
| Social Security and Tier 1 railroad retirement | Subtracted in full, Line 10 | Subtracted in full |
| Pensions, IRAs, 401(k)s, military retired pay | Taxed in full | Taxed in full |
| Federal tips, overtime, car-loan and $6,000 senior deductions | Not allowed | Allowed (verify mechanism) |
| Federal non-itemizer charitable deduction (§ 170(p)) | Added back | Added back |
| State and local income tax, itemizers | Not deductible | Not deductible |
| Real estate tax, itemizers | Deductible, no $40,000 cap | Deductible, no $40,000 cap |
| DC 5% limitation on itemized deductions begins at DC AGI | $200,000 (verify) | $200,000 |
| DC College Savings Plan subtraction, per person | $4,000 | $4,000 |
| Disability income exclusion (D-2440), household AGI under $100,000 | $10,000 | $10,000 |
| Teacher classroom materials / tuition subtractions | $500 / $1,500 | $500 / $1,500 (verify) |
| Local income tax | None | None |
The 2025 standard deduction figures are from the 2025 D-40 booklet. The FY2027 Budget Support Act of 2026 sets the 2026 figures as the 2025 figures plus a cost-of-living adjustment; the Department has not yet published them.
The credits
| Credit | Figure | Refundable? | Income limit |
|---|---|---|---|
| DC earned income credit (D-40 Line 27) | 85% of the federal EITC (100% for 2025); ITIN filers qualify; monthly payments if $1,200 or more | Yes | Federal EITC limits |
| DC EITC for workers without a qualifying child | 2025 maximum $649; 2026 to come (verify whether the 85% applies) | Yes | Own worksheet |
| Child and dependent care credit (Line 21) | 32% of the federal credit (verify 2026) | No | Federal rules |
| Keep Child Care Affordable credit (Schedule ELC) | Up to $1,200 per child under 4 in a licensed facility, 2025; 2026 to come | Yes | Taxable income $180,100; $90,000 married filing separately (2025) |
| Schedule H homeowner and renter property tax credit (Line 28) | Up to $1,425 for 2025; 20% of rent counts as property tax; 2026 to come | Yes | Federal AGI $66,000 under age 70; $90,000 at 70 and older (2025) |
| Child tax credit | None (verify) | ||
| Credit for income tax paid to another state | Tax paid elsewhere on income DC also taxes (verify scope) | No | None |
| Franchise tax credit for owners of DC unincorporated businesses and S corporations (new 2026) | Pro rata share of franchise tax paid, up to the owner’s DC income tax | No | None |
| Alternative fuel vehicle conversion credit | 50% of cost, up to $19,000, through 2035 | No | None |
| Residential EV charger credit | 50% up to $1,000, starting tax year 2027, not 2026 | No | None |
The Schedule H and Keep Child Care Affordable figures are indexed and announced each October 1; the 2025 figures above are from the Department’s October 1, 2025 notice. The DC Health Care Shared Responsibility payment for a resident without coverage (Schedule HSR) was $795 for 2025; 2026 to come.
Worked example: the same brackets for a couple as for a single filer
Two single DC residents each have federal AGI of $95,000 and take the standard deduction. Then they marry and file jointly on $190,000. Nothing else changes. The standard deduction shown is the 2025 figure; the 2026 figure is indexed and not yet published.
| Two single returns | One joint return | |
|---|---|---|
| Federal AGI | $95,000 each | $190,000 |
| DC standard deduction (2025 figures) | −$15,000 each | −$30,000 |
| DC taxable income | $80,000 each | $160,000 |
| Tax: $3,500 plus 8.5% of the excess over $60,000 | $5,200 each | $12,000 |
| DC tax | $10,400 | $12,000 |
| Cost of filing as a couple | $1,600 |
The deduction doubles for the couple; the brackets do not. The second $60,000 that was taxed at 4%, 6% and 6.5% on the second single return is taxed at 8.5% on the joint return. The gap grows with income: a couple with $500,000 of taxable income pays $42,775, two singles with $250,000 each pay $39,300. Married filing separately on a combined DC return does not escape it; the brackets are the same there too.
Paying in
| Item | Figure |
|---|---|
| Withholding certificate | Form D-4; nonresidents working in DC give the employer Form D-4A to stop DC withholding |
| Estimated payments required when | Expected DC tax after withholding is $100 or more |
| Safe harbor | 90% of this year’s tax, or 110% of last year’s, paid through withholding and timely estimates |
| Estimated payment dates for 2026 | April 15, June 15, September 15, 2026, and January 15, 2027 |
| Electronic payment required | Any estimated payment over $5,000 for a period |
| Underpayment interest | 10% a year, compounded daily, figured on Form D-2210 |
| Return due | April 15, 2027 |
| Extension | Form FR-127 with payment by April 15, 2027, to October 15, 2027; the federal Form 4868 is not accepted |
| Refund claim deadline | Three years from the return’s due date |
| Report an IRS change | Amended D-40 within 90 days of the federal notice |
Beyond the income tax
| Item | Figure |
|---|---|
| Estate tax exclusion, deaths in 2026 | $4,988,400; rates on the excess to 16% (verify rates); Form D-76 due nine months after death; no inheritance or gift tax; 2027 figure to come |
| General sales tax | 6% through September 30, 2027; the increase to 7% was delayed a year |
| Hotel rooms | 15.95% through September 30, 2027 |
| Restaurant meals and alcohol | 10% (verify) |
| Homestead Deduction (real property tax) | $89,850 off assessed value, per the October 1, 2025 notice; next figure to come |
| Senior or disabled owner relief | 50% cut in property tax for owners 65 or older or disabled with household AGI under $159,750, per the October 1, 2025 notice |
| Trash collection credit | $133 |
| Residential property tax rate | 0.85% of assessed value; 1.00% on value over $2,500,000 for Class 1B single-family (verify) |
| Homestead assessment cap | Taxable assessment growth limited to 10% a year |
Property tax relief is administered by the Department’s Real Property Tax Administration and applied for separately; only Schedule H runs through the income tax return.
What changed from 2025
- The federal tips, overtime, car-loan interest and $6,000 senior deductions are allowed for 2026 through 2028, after being disallowed for 2025. How they appear on the 2026 D-40 is not yet published.
- The DC EITC drops from 100% of the federal credit to 85% for 2026 through 2028.
- The DC standard deduction is indexed up from $15,000 / $22,500 / $30,000; the exact 2026 figures are to come. The federal $16,100 / $24,150 / $32,200 do not apply.
- The federal non-itemizer charitable deduction, new for 2026, is added back to DC income.
- The exclusion for an owner’s share of DC unincorporated business and S corporation income is replaced by a nonrefundable credit for franchise tax paid.
- The sales tax increase to 7% is postponed from October 1, 2026 to October 1, 2027.
- The estate tax exclusion rose to $4,988,400 for deaths in 2026.
- Not changed: the rates, the taxation of pensions and IRAs, the Social Security subtraction, the 32% dependent care credit, the $4,000 529 subtraction, the itemizing rules.
Behind the scenes: why nothing in the rate table moves
The District indexes its standard deduction, its Schedule H and child care credits, its estate tax exclusion and its property tax figures every year, and indexes none of its brackets. The seven thresholds took effect for tax year 2022 and have not been touched since. Each year of inflation moves more of an ordinary paycheck past $60,000 into the 8.5% bracket without a vote, and the same thresholds for every filing status mean the second earner in a household starts at the first earner’s top rate. Both features are choices; neither is an oversight.
What to bring
- Last year’s D-40, so the 2025 and 2026 figures can be compared line by line
- Dates of birth for everyone on the return; 65 adds to the standard deduction and, for 2026, brings the $6,000 senior deduction into DC
- Your federal return showing whether you itemized, which decides whether you itemize in DC
- Real estate tax paid in 2026, if you itemize
- DC College Savings Plan contribution statements
- Rent paid or property tax paid for Schedule H, with the landlord’s name and address
- Child care receipts from a licensed DC facility for Schedule ELC, with the facility’s license number
- Estimated payment confirmations from MyTax.DC.gov, with dates
Questions people ask
What is the DC income tax rate for 2026?
Seven rates from 4% to 10.75%. The first $10,000 of taxable income is taxed at 4%, the next $30,000 at 6%, the next $20,000 at 6.5%, income from $60,000 to $250,000 at 8.5%, then 9.25%, 9.75% and 10.75% above $1,000,000. The brackets are identical for every filing status.
What is the DC standard deduction for 2026?
Not yet published. It is the 2025 figure, $15,000 single, $22,500 head of household or $30,000 joint, plus a cost-of-living adjustment, plus the federal add-on for age or blindness. It is not the federal $16,100, $24,150 or $32,200.
Does DC tax Social Security?
No. The taxable portion in federal AGI is subtracted on D-40 Line 10 at any age and any income. Pensions, IRA and 401(k) withdrawals and military retired pay are taxed in full.
How much is the DC earned income credit for 2026?
85% of your federal EITC, down from 100% for 2025. It is refundable, and if it comes to $1,200 or more you can take it in twelve monthly payments.
Does DC have a child tax credit?
Not for 2026, as far as the enacted law shows. The 2024 credit was repealed before it paid out and the December 2025 restoration was in a temporary act that did not carry into the FY2027 budget. We have flagged this for the DC reviewer.
What is the DC estate tax exemption?
$4,988,400 for a death in 2026, per the Department’s October 1, 2025 notice. There is no inheritance tax and no gift tax.
Seven brackets that never move, and a deduction that moves every year
Check the standard deduction against the Department’s own figure, not the federal one, and remember that a couple hits 8.5% at the same $60,000 a single filer does.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
Sources and where to check
- OTR: DC Individual and Fiduciary Income Tax Rates
- OTR: Notice of Oct. 1, 2025 Tax Changes
- OTR: Estimated Tax Requirement and Underpayment Interest
- OTR: Individual Income Tax Filing FAQs
- Thomson Reuters: District of Columbia 2027 budget support legislation becomes law (Law 26-189)
- OTR Newsroom (no Oct. 1, 2026 notice posted as of November 3, 2026)