Washington DC's Sales Tax Rate
Washington DC charges a 6 percent sales tax on most retail purchases. This rate applies to goods and services bought within the district and is added to the price at checkout. Unlike some states that vary their rate by county or city, DC has one flat rate across the entire district.
The 6 percent figure has remained stable for years, though it is worth confirming the current rate with the DC Department of Finance and Revenue if you are planning a major purchase, since tax law can change. You will see this tax applied at grocery stores, clothing shops, restaurants, and most other retail locations in DC.
Key Takeaways
- Washington DC's sales tax rate is 6 percent on most goods and services purchased in the district.
- Groceries and prescription medications are exempt from DC sales tax, but prepared food and over-the-counter drugs are taxed.
- Restaurant meals, alcohol, and hotel stays are all subject to the 6 percent sales tax.
- The tax is calculated on the pre-discount price, so a 20 percent off sale still means you pay tax on the original amount.
What Is and Isn't Taxed in DC
Not everything you buy in DC is subject to the 6 percent rate. Unprepared groceries—raw vegetables, meat, dairy, bread, and canned goods you take home to cook—are tax-exempt. This means your grocery bill at a supermarket will not include sales tax on these items. However, prepared food sold hot or ready-to-eat is taxed, so a rotisserie chicken from the grocery store deli counter or a sandwich from a grocery store café will have tax added.
Prescription medications are also exempt from DC sales tax when you present a valid prescription. Over-the-counter medications like pain relievers, cold medicine, and vitamins are taxed at the standard 6 percent rate. Medical equipment such as wheelchairs or diabetic supplies may be exempt, but the rules depend on the specific item and how it is classified, so ask the retailer or check with the DC Department of Finance and Revenue if you are unsure.
Clothing and shoes are taxed in DC, unlike in some neighboring states. Restaurant meals, takeout food, alcohol, and beverages are all subject to the 6 percent sales tax. Hotel rooms and short-term rental stays also carry the tax.
How Sales Tax Is Calculated
Sales tax in DC is calculated on the pre-discount price of an item. If an item is marked $100 and you have a 20 percent off coupon, the store will explore the discount first (bringing the price to $80), then add 6 percent tax on that $80 amount. The final price would be $84.80. Some retailers may display prices with tax included, but most show the pre-tax price and add the tax at the register.
When you buy multiple items, each taxable item is taxed individually at 6 percent. If you purchase a mix of taxable and tax-exempt items—say, groceries and a magazine—the tax applies only to the magazine and other taxable goods. The cashier's register is programmed to know which items are taxable and which are not, so the calculation happens automatically.
Sales Tax on Services
DC sales tax applies to many services beyond just goods. Haircuts, dry cleaning, car repairs, and plumbing work are all subject to the 6 percent tax. Personal services like massage therapy and fitness training are taxed as well. However, some professional services—such as legal information or accounting—may be treated differently, so if you are paying for a service and want to know whether tax will be added, ask the business directly.
Digital services and downloads can be taxed in DC depending on what they are. Software purchases, streaming subscriptions, and digital downloads may be subject to sales tax, though the rules vary by the type of service. When in doubt, the DC Department of Finance and Revenue website or a call to their office can clarify whether a specific service is taxable.
Who Collects and Where the Money Goes
Retailers and service providers in DC are responsible for collecting sales tax from customers and sending it to the DC Department of Finance and Revenue. Businesses must register with the department, collect the tax at the point of sale, and file returns—usually monthly or quarterly depending on their sales volume. The tax revenue goes into the DC general fund and supports city services like schools, public safety, and infrastructure.
As a customer, you do not file anything related to sales tax. The business handles all reporting and payment to the district. Your only interaction with sales tax is seeing it added to your receipt.
Sales Tax in Neighboring Areas
If you shop just outside DC, the tax rate changes. Maryland charges 6 percent sales tax statewide, the same as DC. Virginia has a 5.3 percent state sales tax, though some localities add an additional tax, bringing the total to 5.75 percent or higher depending on where you are. Northern Virginia areas near DC may have slightly different rates than southern Virginia.
This matters if you live near a border. Some people cross into Virginia to buy large items and save on tax, though Virginia's lower rate means the savings are modest. Keep in mind that if you buy something in another state and bring it into DC, you do not owe DC sales tax on it—the tax was already paid where you bought it.
Frequently Asked Questions
Do I pay sales tax on groceries in DC?
Unprepared groceries like raw meat, vegetables, bread, and canned goods are not taxed. Prepared foods—rotisserie chicken, deli sandwiches, hot bar items—are taxed at 6 percent. If you are unsure whether a specific item counts as prepared or unprepared, ask the cashier before checkout.
Is sales tax added to restaurant bills in DC?
Yes, the 6 percent sales tax is added to your food and drink bill at restaurants, cafés, and bars. This is separate from the tip you leave for your server. The tax appears on your receipt before you calculate the tip amount.
What about sales tax on prescription medications?
Prescription medications are exempt from DC sales tax when you show a valid prescription. Over-the-counter medications like aspirin, cough syrup, and allergy pills are taxed at 6 percent. Ask the pharmacist if you are unsure whether a specific medication requires a prescription.
Do I owe DC sales tax on something I bought in Virginia?
No. Sales tax is paid where you make the purchase. If you bought something in Virginia and paid Virginia's sales tax, you do not owe DC tax on it. The tax follows the transaction, not the item.
Is clothing taxed in DC?
Yes, clothing and shoes are subject to the 6 percent sales tax in DC. This includes new clothes, used clothing from retail shops, and shoes. Some states exempt clothing, but DC does not.