Washington DC Sales Tax Guide: Rate & Rules

The District of Columbia applies a single 6% general sales and use tax with no separate local rate. A scheduled increase to 7% on October 1, 2026 has been postponed to October 1, 2027 [10]. Several categories carry higher special rates.

To look up the combined rate for a specific Washington, D.C. address, use our US sales tax calculator.

Most sales in the District are taxed at the 6% general rate, but several categories carry their own rates [2]. Restaurant meals, prepared food and alcohol served for drinking on the premises are taxed at 10%, while alcohol sold for off-premises consumption, such as at a liquor store, is taxed at 10.25% [2]. Parking and vehicle storage carry the highest rate, 18% [2].

The 15.95% hotel rate is temporary and runs through September 30, 2027, and the increase in the general rate to 7% has been postponed to October 1, 2027 [10].

DC economic nexus applies once your retail sales into the District exceed $100,000 or 200 separate transactions in the current or prior calendar year. Either threshold creates an obligation. Physical presence creates nexus immediately.

District of Columbia law, D.C. Code § 47-2002.01a, requires a marketplace facilitator to register with the Office of Tax and Revenue and to collect and remit District sales tax on both its own sales and sales it facilitates for marketplace sellers, regardless of whether the marketplace seller would otherwise have been required to collect — a requirement OTR guidance states began April 1, 2019. Marketplace facilitators have no threshold: unlike remote sellers, a facilitator collects on every facilitated sale into the District regardless of its sales volume or transaction count.[11] Marketplace sales still count toward a remote seller's own $100,000/200-transaction nexus calculation, so a seller can be pushed over that threshold and required to separately collect on its own direct website sales even while the facilitator collects on its marketplace sales.[9]

DC assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 20th of the month following the reporting period. For the portal, return, and step-by-step, see our guide to filing Washington, DC sales tax online.

The District exempts groceries and prescription drugs. SaaS is taxable in DC — cloud-based software subscriptions and hosted software delivered to DC customers are subject to the general sales tax rate.

DC buyers request a Certificate of Resale (Form OTR-368) through MyTax.DC.gov, which the Office of Tax and Revenue issues and which the buyer gives the seller to buy for resale [5]. The certificate is valid for one year with a stated expiration date [5].

For the official form, multistate certificate rules and expiry, see the Washington, D.C. resale certificate guide.

Late filing or payment carries a penalty of 5% of the tax due per month, up to a 25% maximum, plus interest from the due date. Our Washington, DC filing guide lists late filing penalties, interest, and what to do if you missed a return.

You can protest an assessment to the Office of Administrative Hearings within 30 days of the notice, which halts collection while it is pending [6]. Judicial review at DC Superior Court is available within six months after paying the tax [6].

• [1] DC Code 47-2202 (general sales tax rate)

• [2] DC OTR — Sales and Use Tax FAQs (economic nexus)

• [3] DC OTR — Data Processing Services (SaaS taxable)

• [4] DC OTR — Digital Goods Taxability Chart

• [5] DC OTR — Certificate of Resale (Form OTR-368)

• [6] DC OTR — Taxpayer Rights and Appeals (30-day OAH petition)

• [7] DC OCFO — Sales and Use Tax Rates

• [8] DC OTR — New Business Registration (FR-500)

• [9] D.C. Code § 47-2002.01a — Marketplace Facilitators

• [10] DC OTR — Sales and Use Tax (October 2026 increase postponed to October 1, 2027)

• [11] DC OTR — Effective April 1, Marketplace Facilitators Must Collect District Sales Taxes (no facilitator threshold)

Verified July 2026 against DC Office of Tax and Revenue published guidance.