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

Canonical: https://trykintsugi.com/sales-tax-guides/usa/washington-dc
Published: September 22, 2026

Washington, D.C.'s 6% sales tax rises to 7% on October 1, 2026, and SaaS is taxable. Economic nexus starts at $100,000 or 200 transactions.

- **SaaS:** Taxable
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Taxable

- **Effective date::** 

- **Scheduled change::** The District's general sales tax rate rises from 6.0% to 7.0% effective October 1, 2026 under the FY2026 Budget Support Act (D.C. Law 26-55).

## Key Takeaways

The District of Columbia's general sales tax rate is 6.0% through September 30, 2026, rising to 7.0% on October 1, 2026, with higher special rates on restaurant meals, alcohol, and parking [1][7]. You have economic nexus once retail sales into DC exceed $100,000 or 200 separate transactions in the current or prior calendar year [2]. DC taxes SaaS and data processing and taxes digital goods, while food for home consumption is exempt and clothing is taxable [3][4]. Appeal an assessment to the Office of Administrative Hearings within 30 days [6].

## Taxability Snapshot

## Sales Tax Rates

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.

| Component | Rate | Scope |
| --- | --- | --- |
| General | 6.00% | District-wide (7.00% from Oct 1, 2026) |
| Prepared food & alcohol | 10.00% | Restaurants, bars |
| Hotels / lodging | 15.95% | Transient accommodations (temporary surtax through Sept. 30, 2027) |
| Commercial parking | 18.00% | Parking services |

## Registration or Nexus Threshold

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.

## Marketplace Facilitator Law

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]

## Filing Frequency & Deadlines

DC assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 20th of the month following the reporting period.

#### Exemptions

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.

## Resale & Exemption Certificates

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].

## Penalties

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.

## Audits & Appeals

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].

## Sources

- [1] [DC Code 47-2202 (general rate 6% now, 7% from Oct 1, 2026)](https://code.dccouncil.gov/us/dc/council/code/sections/47-2202)

- [2] [DC OTR — Sales and Use Tax FAQs (economic nexus)](https://otr.cfo.dc.gov/page/sales-and-use-tax-faqs)

- [3] [DC OTR — Data Processing Services (SaaS taxable)](https://otr.cfo.dc.gov/page/sales-tax-data-processing-services)

- [4] [DC OTR — Digital Goods Taxability Chart](https://otr.cfo.dc.gov/page/digital-goods-sales-taxability-chart)

- [5] [DC OTR — Certificate of Resale (Form OTR-368)](https://otr.cfo.dc.gov/page/exemptions-audit-division)

- [6] [DC OTR — Taxpayer Rights and Appeals (30-day OAH petition)](https://otr.cfo.dc.gov/page/taxpayer-rights-appeals-and-reconsiderations)

- [7] [DC OCFO — Sales and Use Tax Rates](https://cfo.dc.gov/page/tax-rates-and-revenues-sales-and-use-taxes-alcoholic-beverage-taxes-and-tobacco-taxes)

- [8] [DC OTR — New Business Registration (FR-500)](https://otr.cfo.dc.gov/page/new-business-registration)

- [9] [D.C. Code § 47-2002.01a — Marketplace Facilitators](https://code.dccouncil.gov/us/dc/council/code/sections/47-2002.01a)

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

## Frequently Asked Questions

### What is the Washington DC sales tax rate in 2026?

A general rate of 6%, rising to 7% on October 1, 2026. Prepared food is 10% and hotels 15.95%.

### What is DC's economic nexus threshold?

$100,000 in retail sales or 200 separate transactions into the District in the current or prior calendar year. Either one triggers nexus.

### Is SaaS taxable in Washington DC?

Yes. DC taxes SaaS and hosted software delivered to District customers at the general sales tax rate.

### Is the DC sales tax rate changing in 2026?

Yes. The general rate rises from 6% to 7% effective October 1, 2026.

### When are DC sales tax returns due?

The 20th of the month following the reporting period.

### What is the penalty for late DC sales tax?

5% of the tax due per month, up to a 25% maximum, plus interest.

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