Washington DC's Sales Tax Rate

Washington DC charges a 6 percent sales tax on most retail purchases. This rate applies to tangible goods — clothing, electronics, groceries at checkout, furniture, and similar items you can touch and take home. The tax is calculated on the sale price and added at the register.

DC has no local sales tax on top of the state rate, so 6 percent is what you pay. Unlike some states that let counties or cities add their own tax, DC operates as a single tax jurisdiction. If you buy something in DC, you pay DC's rate regardless of which neighborhood you're in.

Key Takeaways

  • Washington DC's sales tax is 6 percent on most goods, with no additional local tax layered 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 professional fees are generally not subject to sales tax in DC.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a DC presence.

What Is Exempt From DC Sales Tax

DC exempts several categories of goods and services from the 6 percent tax. Groceries — unprepared food you buy at a supermarket to cook at home — are not taxed. This includes produce, meat, dairy, bread, and canned goods. The exemption covers food for human consumption that you prepare yourself.

Prescription medications are exempt when dispensed by a licensed pharmacist with a valid prescription. Over-the-counter medications like pain relievers and cold medicine are taxed. Medical equipment prescribed by a doctor — such as wheelchairs, crutches, and diabetic supplies — is also exempt.

Most services are not subject to sales tax in DC. A haircut, car repair, plumbing work, or accounting consultation is not taxed. The tax applies to goods, not labor. However, if you buy a product as part of a service — such as paint when a contractor paints your house — the product portion may be taxed depending on how the invoice is structured.

What Is Taxed at the Full 6 Percent

Restaurant meals and prepared foods are taxed at 6 percent, whether you eat in or take out. This includes sandwiches from a deli, pizza, coffee from a café, and any food sold hot or ready to eat. The distinction is straightforward: if you're buying food someone else prepared, it's taxed.

Alcoholic beverages — beer, wine, and liquor — are subject to the 6 percent sales tax when purchased at a store, bar, or restaurant. DC also charges an additional excise tax on alcohol, but that is separate from sales tax and varies by type of beverage.

Clothing, shoes, and accessories are taxed at 6 percent with no exemption for children's clothing or any other category. Electronics, appliances, furniture, books, and toys are all taxed. Gasoline is taxed, as are vehicle parts and supplies.

How Sales Tax Works on Online Purchases

Whether you pay DC sales tax on an online purchase depends on whether the seller has a physical or economic presence in DC. If an online retailer has a warehouse, office, or employees in DC, they must collect and send DC sales tax to the city. Many large retailers like Amazon, Walmart, and Target have DC operations and therefore collect DC tax on orders shipped to DC addresses.

If a seller has no DC presence, they are not required to collect DC sales tax at checkout. However, DC residents are technically responsible for paying "use tax" — a tax on purchases made outside DC but used in DC — when they file their DC tax return. In practice, few individuals report use tax on personal purchases, but the obligation exists.

The safest assumption is that major retailers will charge you DC sales tax. Smaller online sellers may not. If you're unsure whether tax was charged, check your receipt or the seller's tax policy before checkout.

Who Collects and Where the Money Goes

The retailer or business collecting the tax sends it to the DC Department of Revenue on a monthly or quarterly basis, depending on the business's size and sales volume. You do not send the tax directly to the city — the business handles that responsibility.

Sales tax revenue funds DC's general operations, including schools, public safety, transportation, and social services. DC relies on sales tax as a significant source of revenue, so the 6 percent rate is one of the ways the city pays for city services.

Sales Tax on Specific Items You Might Question

Newspapers and magazines are not taxed in DC. Postage stamps are not taxed. Lottery tickets are not taxed. Rental of tangible goods — such as renting a car, equipment, or a costume — is taxed at 6 percent.

Gym memberships and fitness classes are not subject to sales tax because they are services. Haircuts and salon services are not taxed. Dry cleaning and laundry are not taxed. Hotel rooms are subject to a separate hotel tax (currently 14.5 percent in DC), not the standard sales tax, though the distinction does not affect what you pay.

If you are unsure whether a specific item is taxed, ask the cashier or check the receipt. Most retailers are familiar with DC's rules and can tell you whether tax applies before you buy.

Frequently Asked Questions

Is DC sales tax higher or lower than nearby states?

DC's 6 percent rate is lower than Maryland (6 percent plus local taxes, totaling 5.75 to 6.5 percent depending on county) and Virginia (5.3 percent plus local taxes, totaling 5.3 to 6.35 percent). However, the difference is small enough that it should not drive shopping decisions. What matters more is what is exempt in each place — groceries are taxed in Maryland and Virginia but not in DC.

Do I pay sales tax if I buy something in DC but live in Maryland or Virginia?

Yes, you pay DC's 6 percent sales tax at the register in DC, regardless of where you live. The tax is based on where the purchase happens, not where you live. If you buy something in Maryland, you pay Maryland tax instead.

What if a receipt shows tax but I think the item should be exempt?

Ask the store to review the charge. Mistakes happen — for example, a cashier might tax a prescription medication by accident. Most stores will correct the error and refund the tax if you catch it before leaving. Keep your receipt and ask a manager if you believe the tax was wrong.

Does DC tax explore to mail orders or phone orders shipped to my DC address?

Only if the seller has a DC presence. If you order from a large retailer with DC operations, tax will be charged. If you order from a small seller with no DC location, tax may not be charged, though you would technically owe use tax when you file your DC return.

Are there any DC sales tax holidays or exemption periods?

DC does not have an annual sales tax holiday like some states do. There are no periods when sales tax is waived on back-to-school items, holiday purchases, or other categories. The 6 percent rate applies year-round to taxable items.