Washington DC charges a 6 percent sales tax on most goods and some services

Washington DC's sales tax rate is 6 percent, applied to the purchase price at checkout. This is lower than most surrounding states — Maryland charges 6 percent but adds local taxes on top, and Virginia ranges from 5.3 to 5.75 percent depending on locality. DC's 6 percent is the total you pay; there is no additional local or county tax layered on top.

The tax applies to tangible goods — clothing, groceries, electronics, furniture — and to certain services like dry cleaning, parking, and hotel stays. Some items are exempt, which creates confusion at the register. Understanding what is and is not taxed can help you budget accurately and avoid surprises.

Key Takeaways

  • Washington DC's sales tax is a flat 6 percent with no additional local taxes added on top.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax in DC.
  • Restaurant meals, prepared foods, and alcoholic beverages are taxed at the full 6 percent rate.
  • Services like haircuts, repairs, and parking are taxed, but professional services like legal information and medical care are not.

What is and is not taxed in DC

Groceries are not taxed in Washington DC. This includes raw meat, produce, dairy, bread, and packaged foods you prepare at home. The exemption covers food stamps and SNAP purchases as well. However, the moment food is prepared for when ready consumption — a rotisserie chicken from the grocery store deli, a sandwich from a café, a coffee — it becomes taxable.

Prescription medications and medical devices like diabetic test strips, hearing aids, and mobility aids are exempt. Over-the-counter medications like ibuprofen and cold medicine are also exempt. Vitamins and supplements, however, are taxed because they are classified as general merchandise rather than medicine.

Clothing and footwear are taxed at the full 6 percent. There is no clothing exemption in DC, unlike some states. This includes children's clothing, shoes, and accessories.

Services fall into two categories. Taxable services include haircuts, salon services, dry cleaning, laundry, parking, hotel stays, and car repairs. Non-taxable services include legal information, medical and dental care, accounting, and veterinary services.

Restaurant meals and prepared foods

Any food prepared for you to eat right away is taxed at 6 percent. This includes restaurant meals, takeout from a deli, pizza, sandwiches, coffee, and smoothies. The tax applies whether you eat in the restaurant or take the food with you.

Alcohol is also taxed at 6 percent when purchased for consumption. This covers beer, wine, and spirits whether bought at a bar, restaurant, or liquor store. The alcohol tax is separate from the sales tax — it is included in the 6 percent figure, not added on top.

How the tax appears on your receipt

When you check out, the cashier or register will show the subtotal, then add the 6 percent sales tax as a separate line. The final total is what you pay. Online purchases shipped to a DC address are also subject to sales tax, though some retailers may not collect it depending on their policies and where they are based.

If you buy something in another state and bring it to DC, you do not pay DC sales tax at the register — you already paid tax in that state. DC does not charge a use tax on items brought in from elsewhere, so there is no additional tax owed later.

Who collects and where the money goes

The business selling the item collects the sales tax and sends it to the DC Department of Revenue. The tax is part of DC's general fund, which pays for schools, public safety, roads, and other city services. Businesses are required to register with the Department of Revenue and file tax returns monthly or quarterly depending on their sales volume.

If a business fails to collect or remit sales tax, the Department of Revenue can audit them and assess penalties. As a customer, you are not responsible for ensuring the business collects the tax — that is their legal obligation.

Sales tax on specific purchases

Electronics like phones, laptops, and televisions are taxed at 6 percent. Furniture and home goods are taxed. Books are taxed. Toys are taxed. The rule is straightforward: if it is a physical item you can touch, it is almost certainly taxed unless it falls into one of the exemptions like groceries or medicine.

Digital purchases — e-books, software, streaming subscriptions, and digital downloads — are generally not taxed in DC, though this is an area where tax law is still evolving. If you are unsure whether a specific digital product is taxed, the retailer's website or customer service can tell you what will appear on your receipt.

Comparing DC's tax to nearby areas

DC's 6 percent rate is competitive with the region. Maryland charges 6 percent state sales tax, but most Maryland counties add an additional 1 to 3 percent local tax on top, bringing the total to 7 to 9 percent depending on where you shop. Virginia's rate ranges from 5.3 to 5.75 percent depending on locality. Northern Virginia counties near DC tend to be on the lower end.

If you live in DC but work in Maryland or Virginia, or vice versa, the tax rate where you make the purchase is what applies. Buying groceries in DC and bringing them home to Maryland does not change the tax you paid — you paid DC's rate because that is where the transaction occurred.

Frequently Asked Questions

Is DC sales tax included in the price shown on the shelf?

No. The shelf price is the pre-tax price. The 6 percent sales tax is added at checkout. This is why the total you pay is always higher than the sticker price you see while shopping.

Do I pay sales tax if I buy something online and have it shipped to DC?

Yes, if the retailer collects sales tax. Most major online retailers now collect DC sales tax on orders shipped to DC addresses. Some smaller retailers may not, depending on their business structure and where they are based. The retailer's checkout page will show you what tax, if any, will be charged.

Are diapers and baby formula taxed in DC?

Yes. Unlike some states, DC does not exempt diapers, baby formula, or other baby products from sales tax. They are taxed at the full 6 percent rate.

What about tax-free shopping days?

DC does not have an annual tax-free shopping day. Some states offer these, but DC does not. You pay the 6 percent sales tax on every purchase, year-round.

If a business charges me sales tax but does not remit it to the city, am I liable?

No. You are not responsible for whether the business sends the tax to the Department of Revenue. Your responsibility ends when you pay the amount shown on the receipt. If a business fails to remit, that is between the business and the city.