State-by-State Guide to Taxes on Retirees - District_Of_Columbia
Tool | November 2019

State-by-State Guide to Taxes on Retirees

District Of Columbia

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The Bottom Line
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Mixed Tax Picture

Although the District exempts Social Security income, a steep 8.5% tax rate hits income over $40,000. But many senior homeowners can get a substantial break on property taxes (which aren’t that high to begin with.) Sales taxes in the Nation’s Capital are modest, too.

State Sales Tax

The District of Columbia has a 6% sales tax.

Income Tax Range

Low: 4% (on taxable income up to $10,000)

High: 8.95% (on taxable income above $1,000,000)

Effective tax rate: 4.62% for single filers, 4.74% for joint filers.

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Tier 1 Railroad Retirement benefits are exempt.

Property Taxes

In District of Columbia, residents pay an average of $603 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: Homeowners 65 and older with household adjusted gross income of less than $133,100 for the 2019 calendar year can qualify to reduce their property tax by 50%. Homeowners 65 and older whose adjusted gross income is less than $50,000 may qualify for property tax deferral.

Vehicle Taxes

Drivers pay an excise tax — when a new vehicle is first registered in the District — that ranges from 6% to 8%, depending on the vehicle’s weight.

Inheritance and Estate Taxes

The District’s estate tax is an unusual mix: The 2019 exclusion amount for the tax is $5,681,760, which is pretty high when compared to other places in the U.S. But the lowest possible estate tax rate is 12% of the estate's value, which is equal to other locations’ top rate.

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