DC sales tax is 6 percent on most goods and services you buy in Washington, DC

When you buy something in DC, the store adds 6 percent to the price at checkout. That 6 percent goes to the District government. The tax applies to clothing, groceries, electronics, restaurant meals, and most other items. A few categories are taxed differently or not at all — groceries you take home are not taxed, but prepared food is.

The 6 percent rate has been in place since 1992 and is one of the lowest sales tax rates on the East Coast. Some states charge 7 or 8 percent. DC has no additional local sales tax on top of the 6 percent — what you see is what you pay.

Key Takeaways

  • DC sales tax is a flat 6 percent on most purchases, added at the register.
  • Unprepared groceries, prescription medications, and certain medical equipment are not taxed.
  • Restaurant meals, takeout, and prepared foods are taxed at the full 6 percent rate.
  • Online purchases from out-of-state sellers may or may not include DC tax depending on the seller's location and size.
  • The tax is collected by the store and sent to the DC Department of Finance and Revenue.

What is and isn't taxed in DC

Most items you buy are subject to the 6 percent tax. Clothing, shoes, furniture, appliances, books, toys, and household goods all get taxed. Services like haircuts, dry cleaning, and car repairs are taxed too.

A few important exceptions exist. Unprepared food you buy at a grocery store — bread, milk, vegetables, meat, cereal — is not taxed. Prescription medications and certain medical devices like diabetic supplies and hearing aids are also exempt. However, over-the-counter medicines like cold medicine or pain relievers are taxed.

The biggest source of confusion is food. If you buy a sandwich at a deli counter and eat it there, it is taxed. If you buy the same sandwich to take home, it is still taxed because it is prepared food. But if you buy a loaf of bread and deli meat separately at the grocery store, neither is taxed.

How online purchases are taxed

Online shopping complicates the picture. If you order from a large retailer like Amazon or Walmart, DC sales tax is usually added automatically because these companies have a physical presence in DC or are required by law to collect tax. The tax appears in your cart before you check out.

If you order from a small out-of-state seller with no DC location, they may not collect DC tax at checkout. In that case, you are technically responsible for paying the tax yourself, though this is rarely enforced for individual purchases. The rule is called "use tax" — you owe it whether the seller collects it or not.

The safest approach is to assume that major retailers will collect the tax for you and that smaller sellers may not. If you are unsure, check the seller's tax policy before you buy.

Who collects the tax and where it goes

The store or business you buy from collects the sales tax and holds it temporarily. They then send it to the DC Department of Finance and Revenue on a regular schedule — usually monthly for larger businesses and quarterly for smaller ones.

The money goes into the DC general fund, which pays for schools, roads, police, fire services, and other city operations. Unlike some states, DC does not set aside sales tax revenue for a specific purpose — it is part of the overall budget.

Sales tax on specific services

Services are taxed in DC, but the rules vary by type. A haircut or manicure is taxed. Plumbing or electrical work is taxed. Car repairs are taxed. However, some professional services like legal information or accounting are not taxed.

Rental services are usually taxed. If you rent a car, a hotel room, or equipment, the rental fee is subject to sales tax. Some rentals have additional taxes on top of the 6 percent — hotel rooms, for example, have a separate occupancy tax that is higher than sales tax.

Repair and installation services are taxed on the labor cost, not just the parts. If a plumber charges you $200 for parts and $300 for labor, the full $500 is taxed.

How to calculate the final price

To find the total price of something, multiply the listed price by 1.06. A $100 item costs $106 after tax. A $50 item costs $53. Most stores round to the nearest cent, so the final amount might be a penny or two different from your calculation.

You do not need to do this math yourself — the register does it. But it is useful to know when you are budgeting or comparing prices between DC and nearby areas like Maryland or Virginia, which have different tax rates.

Frequently Asked Questions

Is DC sales tax higher than Maryland or Virginia?

DC's 6 percent rate is lower than Maryland's 6 percent state tax plus local taxes (which can reach 6.5 percent or higher depending on the county) and lower than Virginia's 5.3 percent state tax plus local taxes (which can reach 6 percent). DC's rate is competitive for the region.

Do I pay sales tax on groceries?

No, unprepared groceries are not taxed. This includes produce, meat, dairy, bread, cereal, and canned goods. Prepared foods like deli sandwiches, rotisserie chicken, and bakery items are taxed at 6 percent.

What about prescription drugs?

Prescription medications are not taxed in DC. Over-the-counter medicines like aspirin, cough syrup, and allergy pills are taxed at 6 percent.

Do I owe sales tax on items I buy online from out of state?

If the seller collects it, it appears in your cart. If they do not, you technically owe "use tax" to DC, but this is rarely enforced for individual purchases. Large sellers are required to collect; small sellers may not.

Is there a sales tax on services like haircuts or car repairs?

Yes, both are taxed at 6 percent. The tax applies to the full cost, including labor and materials. Some professional services like legal information are exempt, but most personal and business services are taxed.