This blog was last updated on December 22, 2025
The District of Columbia (D.C.) imposes a statewide sales and use tax rate of 6%. Unlike other states, local jurisdictions cannot levy additional taxes, which simplifies compliance compared to areas with varying local sales tax rates.
What’s Taxable in District of Columbia?
District of Columbia sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers of taxable goods and services must collect and remit sales tax in DC according to Washington DC tax laws and DC tax regulations.
Examples of taxable items and services include:
- Clothing
- Laundering and dry cleaning
- Parking (18%)
- Real property maintenance
Are Services Taxable in District of Columbia?
Some services are taxable in addition to those listed above. For details, consult the definitions of “retail sale” and “sale at retail” in DC Code 47-2001. Businesses should review these carefully to avoid errors in DC sales tax filing.
Does District of Columbia Have a Use Tax?
Yes, similar to many states, District of Columbia imposes a use tax. This complements Washington DC taxes on retail transactions.
Sales Tax Nexus in District of Columbia
A seller must collect and remit retail sales tax in DC if they meet nexus requirements, which can be physical or economic.
District of Columbia: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the District of Columbia.
District of Columbia: Economic Nexus
District of Columbia enforces economic nexus for remote sellers. If your business has:
- Over $100,000 in sales, or
- More than 200 transactions in the District of Columbia during the previous calendar year;
you may be required to register for and collect District of Columbia sales tax.
Learn more on the District of Columbia’s Remote Seller and Marketplace Seller FAQ’s.
District of Columbia Sales Tax Exemptions
Certain sales in District of Columbia are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
Examples of exempt items include:
- Medicines, pharmaceuticals, and drugs (whether or not sold by prescription)
- Food for home consumption
- Feminine hygiene products
- Diapers
Are Groceries Exempt in Washington DC?
Foods that qualify for purchase with SNAP benefits are also exempt from District of Columbia sales tax.
How to Claim Sales Tax Exemption in District of Columbia
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts this as the application OTR-308.
Additional guidance on acceptable exemption formats can be found in FAQ’s OTR MyTax DC.
An organization recognized as a tax-exempt entity by the Internal Revenue Service (IRS) is not automatically recognized as a tax-exempt entity under the laws of the District of Columbia. Some exemption requests will require taxpayers to sign up for a OTR MyTax DC account which includes:
- Exemption to File (FR-164)
- Utility Exemption (OTR-308)
- Contractor Exemption Purchase Certificate (OTR-553)
- Certificate of Resale (OTR-368)
- QHTC Exempt Purchase Certificate (FP-337)
District of Columbia Filing and Remittance Requirements
District of Columbia does not offer multiple methods for filing and remitting sales and use tax:
- E-filing through OTR MyTax DC
- FR-800 MQA (Monthly, Quarterly, Annual)
- FR-800 SE (Special Events Return)
- FR-800 SM (Specialized Sales Return)
- FR-800 V (Street vendors and Mobile Food Services)
Instructions can be located here: Sales and Use Tax Instructions
No paper filing available
Frequently Asked Questions
Is the District of Columbia a part of the Streamlined Sales Tax (SST) initiative?
No, the District of Columbia is not part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does the District of Columbia have sales tax holidays?
No, the District of Columbia does not currently offer sales tax holidays.
Are There Any Special Point-of-Sale fees in District of Columbia?
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, District of Columbia imposes the following point of sale fees:
- E911
- Bag Fee
- Paint Care Recovery
How to Register for a District of Columbia Sales Tax License?
District of Columbia businesses or individuals selling tangible personal property or certain services to District of Columbia consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here: FR-500 New Business Registration
Or
Through MyTaxDC – FAQ’s
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
State-by-State Sales Tax Guide
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