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Relocating to District of Columbia: state taxes, residency rules and cost of living

Official figures for District of Columbia: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

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10.75%Top state income tax rate
6%State sales tax rate
$2,075Median gross rent per month
109.9Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in District of Columbia?

District of Columbia state income tax: Graduated, top rate 10.75% from $1,000,000 of taxable income (single filer). Median gross rent is $2,075 per month and the price level is 109.9 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in District of Columbia

Each rule below is read from the District of Columbia revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
Graduated, top rate 10.75% from $1,000,000 of taxable income (single filer)
Source
Estate tax
The District of Columbia levies an estate tax with a $4,988,400 exclusion for 2026 decedents.
Source
Inheritance tax
DC has no current inheritance tax; the inheritance tax return applies only to decedents who died before 1 April 1987.
Source
Who is a resident
DC taxes as residents individuals domiciled in DC at any time in the tax year, and also requires a return from those who keep a place of abode in DC for 183 days or more.
Source
Estate tax exemption
$4,988,400
Source
Sales tax
Statewide rate 6%; local rates may be added
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in District of Columbia

Housing, prices and safety in District of Columbia
MetricValue
Median gross rent per month$2,075
Median home value$715,500
Property tax as a share of home value0.67%
Median real estate taxes paid per year$4,805
Median household income$109,505
Price level (US = 100)109.9
Housing price level (US = 100)155.0
Residential electricity price24.86 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in District of Columbia: common questions

Does District of Columbia have a state income tax?

District of Columbia state income tax: Graduated, top rate 10.75% from $1,000,000 of taxable income (single filer). Federal income tax applies in addition, as in every state.

What is the sales tax in District of Columbia?

The statewide sales tax rate in District of Columbia is 6%. Counties and cities may add local rates.

How much does housing cost in District of Columbia?

In District of Columbia the median gross rent is $2,075 per month and the median value of an owner-occupied home is $715,500, according to the Census Bureau American Community Survey 2025.

Who counts as a resident of District of Columbia for income tax?

DC taxes as residents individuals domiciled in DC at any time in the tax year, and also requires a return from those who keep a place of abode in DC for 183 days or more.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

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Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

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