| Individual Income Tax |
The taxable income of an individual who is domiciled in the District at any time during the tax year, or who maintains an abode in the District for 183 or more days during the year.
DC Code Citation: Title 47, Chapter 18. |
First $10,000 = 4.0%
$10,000 < $40,000 = $400 + 6.0% of excess above $10,000
More than $40,000 = $2,200 + 8.5% of excess above $40,000
Note: Excludes Social Security income and maximum $3,000 exclusion on military retired pay, pension income, or annuity income from DC or federal government. |
| Corporate Franchise Tax |
Net income of corporations having nexus in the District. All corporations engaging in a trade, business or profession in the District of Columbia must register.
DC Code Citation: Title 47, Chapter 18. |
9.975% of taxable income
(9.5% base rate plus a 5% surtax on the base rate)
$100 minimum tax |
| Unincorporated Business Franchise Tax |
Net income of unincorporated businesses with gross receipts more than $12,000. A 30% salary allowance for owners and a $5,000 exemption are deductible from net income to arrive at taxable income.
A business is exempt if more than 80% of gross income is derived from personal services rendered by the members of the entity and capital is not a material income-producing factor. A trade, business or professional organization that by law, customs or ethics cannot be incorporated is exempt.
DC Code Citation: Title 47, Chapter 18. |
9.975% of taxable income
(9.5% base rate plus a 5% surtax on the base rate)
$100 minimum tax |
