Washington D.C. Sales Tax Guide 2026: Rates & Filing

Table of content

Key takeaways

Washington D.C. sales tax rates: The general rate is 6.5% and is scheduled to rise to 7.0% on October 1, 2026, with no local sales taxes. Special rates apply: 10% on prepared food, 14.95% on hotels and 18% on parking.
Economic nexus: Remote sellers must collect once they exceed $100,000 in gross sales or 200 transactions delivered into the District in the current or previous calendar year.
Filing & penalties: Monthly and quarterly returns are due on the 20th of the month after the period, and annual returns by October 20. Late filing and late payment each cost 5% per month, up to 25%.

Washington D.C. sales tax key facts (2026)

Item	Washington D.C.
General sales tax rate	6.5% (rising to 7.0% on Oct 1, 2026)
Local sales taxes	None (single District-wide rate)
Prepared food / liquor	10%
Hotels / parking	14.95% / 18%
Economic nexus threshold	$100,000 or 200 transactions (current or prior year)
Sourcing	Destination-based

Collect and file Washington D.C. sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.

Is SaaS taxable?

Yes (as a data-processing service).

Item	Washington D.C.
Groceries	Exempt (prepared food taxable)
Return due date	20th of the month after the period
Governing agency	DC Office of Tax and Revenue

What is the sales tax rate in Washington D.C.?

The District’s general sales and use tax rate is 6.5% as of October 1, 2025 (up from 6%), and it is scheduled to rise again to 7.0% on October 1, 2026. There are no local sales taxes — one District-wide rate applies everywhere.

Several categories carry special rates: 10% on prepared food and alcoholic drinks served on premises (10.25% on alcohol sold for off-premises consumption), 14.95% on hotel accommodations, and 18% on parking.

Do you have sales tax nexus in Washington D.C.?

Nexus is the connection that obligates your business to collect and remit Washington D.C. sales tax. You can establish it two ways — physically or economically. Either one is enough.

Physical nexus

You have physical nexus if you have a tangible presence in Washington D.C., such as:

A physical location such as a store, warehouse, or office in the District
A representative, agent, or salesperson present in the District to make sales
Inventory or other property kept in the District

Economic nexus

Out-of-state sellers establish economic nexus once they exceed $100,000 in gross sales or 200 separate transactions delivered into the District in the current or previous calendar year. Crossing either threshold triggers a registration and collection obligation.

Marketplace facilitators collect and remit on the sales they facilitate, but those sales generally count toward your own threshold — so if you also sell directly, track the combined total.

What is taxable in Washington D.C.?

Tangible personal property is generally taxable. The District taxes a broader set of services than most jurisdictions, including data processing, information services, real-property maintenance (janitorial, repair), health-club memberships, landscaping, parking, and amusements. Exemptions include groceries, prescription and most over-the-counter medicines, and feminine hygiene products.

Both canned and custom software are taxable whether delivered electronically or on physical media, and shipping/delivery charges are taxable when the item shipped is taxable. The District has no sales tax holidays.

Is SaaS taxable in Washington D.C.?

Yes. The District taxes SaaS (both B2B and B2C) as a data-processing service at the general rate (currently 6.5%). Digital goods such as e-books, streaming, and downloaded media are taxable too.

How is food taxed in Washington D.C.?

Grocery-type food for home consumption is exempt. Prepared food is taxed at 10%, as are alcoholic drinks served on premises; alcohol sold for off-premises consumption is taxed at 10.25%.

How to register for a Washington D.C. sales tax permit

You must register before making taxable sales. Taxually can register for you, or you can apply online through MyTax.DC.gov. Registration is free.

Have ready: your FEIN and/or SSN (plus details for authorized individuals); your business’s legal structure and address; the names, titles, addresses, and SSNs of owners/partners/principal officers; any prior District registration; and the addresses of all locations where you’ll collect tax.

How to collect sales tax in Washington D.C.

The District is destination-based, but because there is a single District-wide rate, you charge the same general rate (currently 6.5%) on all taxable sales delivered within DC — plus the applicable special rate for categories like prepared food, hotels, or parking.

Filing and paying Washington D.C. sales tax

The OTR assigns your filing frequency by volume. Monthly and quarterly returns are due on the 20th of the month following the period; annual returns are due October 20 of the following year (next business day if a deadline falls on a weekend or holiday).

File and pay online through MyTax.DC.gov (or by mail using Form FR-800M, FR-800Q, or FR-800A). Electronic filing and payment are required once your liability exceeds $5,000. Taxually’s software automates the full process.

Penalties for late or non-compliant filing

Failing to file or pay on time triggers these penalties:

Late filing: 5% of the unpaid tax per month, up to 25%.
Late payment: 5% of the unpaid tax per month, up to 25%.
Interest accrues on unpaid balances at the current rate.

FAQ

Frequently asked questions

What is the sales tax rate in Washington D.C. in 2026?

The general rate is 6.5% (effective October 1, 2025) and is scheduled to rise to 7.0% on October 1, 2026. There are no local sales taxes, but prepared food is 10%, hotels 14.95%, and parking 18%.