District of Columbia Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in District of Columbia?

What is taxable in District of Columbia?

How do you register to collect sales tax in District of Columbia?

What is the economic nexus threshold for District of Columbia?

How to register for sales tax in District of Columbia

Before you can collect sales tax, you need to register with the DC Office of Tax and Revenue. Here is the step-by-step process.

1. Register online through MyTax.DC.gov for a Sales and Use Tax Certificate of Registration
2. Provide your FEIN or SSN, business entity details, and the address of your DC location
3. Registration is free and can be completed entirely online
4. DC issues your certificate typically within 5-10 business days
5. A single registration covers all sales within DC — there are no separate local jurisdictions

How to collect sales tax in District of Columbia

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in District of Columbia.

1. Determine whether each product or service is taxable — DC has different rates for different categories (6% general, 10% restaurants, 10.25% alcohol, 14.95% hotels)
2. Apply the correct rate based on the category of sale
3. DC has a single uniform rate with no local variations
4. Itemize sales tax on all receipts and invoices
5. Accept and verify exemption certificates from qualifying buyers (government agencies, nonprofits, diplomats)
6. Keep records of all transactions and exemptions for at least 3 years

How to file and remit sales tax in District of Columbia

Filing your sales tax return on time is critical to avoid penalties. District of Columbia requires electronic filing for most businesses.

1. File electronically through MyTax.DC.gov
2. Returns are due on the 20th of the month following the reporting period
3. Report gross receipts, exempt sales, and taxable sales by rate category
4. Pay electronically — DC requires electronic filing and payment
5. Retain records and copies of returns for at least 3 years

What is exempt from District of Columbia sales tax?

Not everything is subject to sales tax. District of Columbia provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the DC Office of Tax and Revenue.

• •Sales for resale with a valid DC resale certificate
• •Grocery food for home consumption (unprepared food)
• •Prescription and nonprescription medications
• •Sales to the federal government and foreign diplomatic personnel
• •Qualifying nonprofit organizations with a valid DC exemption certificate
• •Newspapers and periodicals

What is use tax in District of Columbia?

DC use tax applies when you purchase taxable goods or services from vendors who do not collect DC sales tax. The use tax rate is the same as the sales tax rate (6% general, with higher rates for specific categories). Businesses must report use tax on their regular sales tax return. Common triggers include online purchases, out-of-state equipment, and services performed by out-of-state vendors.

Does District of Columbia have marketplace facilitator rules?

DC requires marketplace facilitators with more than $100,000 in DC sales or 200 transactions to collect and remit sales tax on behalf of third-party sellers. This applies to platforms like Amazon, eBay, Etsy, and others. If your sales are exclusively through a marketplace facilitator, the facilitator handles the DC sales tax obligation.

What are the penalties for sales tax non-compliance in District of Columbia?

DC imposes a penalty of 5% per month for late filing (up to 25%). Interest accrues at the federal underpayment rate plus 2%. Fraud penalties can reach 75% of the underpayment. Criminal penalties for tax evasion include fines up to $10,000 and imprisonment up to 5 years.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: DC Office of Tax and Revenue.