Washington, D.C. Sales Tax Guide (2026)

The District of Columbia applies a single 6% general sales and use tax with no separate local rate. The general rate rises to 7% effective October 1, 2026. Several categories carry higher special rates.

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. No separate dollar or transaction threshold is stated for triggering a facilitator's own collection duty distinct from the District's general $100,000/200-transaction remote-seller economic nexus test. 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.

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].

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.

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 rate 6% now, 7% from Oct 1, 2026)

• [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

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