Total Range for 2025
| Base state sales tax rate | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of the month following the reporting period | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Washington D.C. is 6%, and since the local rates range is 0% the total sales tax range for Washington D.C. is 6%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Selling a pair of socks in Washington D.C.:
- Socks costs $10.
- Washington D.C. sales tax is 6%.
- Sales tax: $10 x 6% = $0.6.
- Customer pays = $10.60.
Nexus: Why do you need to collect sales tax in Washington D.C.?
If you’re selling goods and services in Washington D.C. then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Washington D.C., triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Washington D.C. exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In Washington D.C., the economic nexus threshold is $100,000 or 200 transactions from deliveries of tangible personal property or services to locations within Washington D.C. during the previous twelve months.
Services
- Selected services are taxable
Goods
- Washington D.C. taxes the sale of most tangible personal property. This means if you’re selling physical items such as appliances, groceries, furniture, etc, they’re likely taxable.
Freight/Shipping
- Shipping and freight charges are generally taxable if they are part of the sale of taxable goods.
Clothing
- Yes, clothing is taxable in Washington D.C.
Electronics
- Electronics are subject to sales tax in Washington D.C.
SaaS
- Yes, SaaS is generally taxable in Washington D.C.
Digital Products
- Digital products such as digital audiovisual works, digital audio works, digital books, digital codes, digital applications and games are all taxable
Software
- Custome canned, pre-packaged and pre-written software are all taxable
How to register for sales tax in Washington D.C.
To register for a sales tax permit in Washington, D.C., you can do so online at My Tax DC. Here’s the information you’ll need:
- Your Federal Employer Identification Number (EIN) and/or Social Security Number, along with details for anyone authorized on your account.
- Your legal business structure (e.g., partnership, corporation, sole proprietor).
- Your business address.
- The names, titles, home addresses, and Social Security numbers of the proprietor, partners, or principal officers (this information is mandatory).
- Former entity information if you have previously registered with the District.
- The addresses of all locations where you will collect sales tax in Washington, D.C.
Applying for a sales tax permit is free, but be aware that other business registration fees may apply. After completing the application, you’ll receive confirmation and instructions for collecting and remitting sales tax.
How to collect sales tax in Washington
1. Register for a Sales Tax Permit
Ensure you have registered for a sales tax permit with the D.C. Office of Tax and Revenue. You can do this online at My Tax DC.
2. Determine the Sales Tax Rate
The standard sales tax rate in Washington, D.C., is currently 6.0%. However, certain items, such as prepared food and alcoholic beverages, may have different rates. Check the D.C. Office of Tax and Revenue website for specific rates applicable to your products or services.
3. Identify Taxable Sales
Understand which of your products or services are subject to sales tax. Generally, tangible personal property and certain services are taxable. Some exemptions may apply, so review the guidelines provided by the D.C. Office of Tax and Revenue.
4. Collect Sales Tax
When making a sale, calculate the sales tax based on the applicable rate and add it to the total sale price. Clearly display the tax amount on the receipt or invoice provided to the customer.
5. Maintain Accurate Records
Keep detailed records of all sales, including the total sales amount and the sales tax collected. This documentation will be essential for filing your sales tax returns.
How to get a sales tax permit/license in Washington D.C.?
To obtain a sales tax permit in Washington, D.C., visit the My Tax DC website and gather necessary information, including your Federal Employer Identification Number, legal business structure, business address, and details of the principal officers. Complete the online application for a sales tax permit, ensuring all information is accurate.
There is no application fee, but other business registration fees may apply. Once processed, you will receive confirmation and your permit, allowing you to start collecting sales tax on taxable sales in the District.
When are Washington D.C.’s sales tax returns due?
The timing for filing and paying sales tax in Washington, D.C., depends on your assigned filing frequency and the state’s due dates. When you register for your sales tax permit, the state assigns you a filing frequency based on the amount of sales tax you collect.
In Washington, D.C., you may be required to file and remit sales tax monthly, quarterly, or annually. Sales tax returns are always due on the 20th of the month following the reporting period. If the due date falls on a weekend or holiday, the payment is generally due on the next business day.
Is anyone exempt from sales tax in Washington?
Yes, there are certain exemptions from sales tax in Washington, D.C. Some common exemptions include:
- Nonprofit Organizations: Qualified nonprofit organizations may be exempt from sales tax on purchases related to their exempt purposes.
- Government Entities: Federal, state, and local government agencies are generally exempt from sales tax when making purchases for government use.
- Medical Equipment: Certain medical devices and equipment may be exempt from sales tax, particularly those deemed necessary for medical treatment.
- Sales for Resale: Purchases made by retailers for resale in the regular course of business are exempt from sales tax.
- Manufacturing and Production Equipment: Equipment and materials used directly in manufacturing, processing, or production may qualify for exemption.
