(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) will begin to accept and process Tax Year 2023 individual income tax returns today, January 29, consistent with the start of the federal tax filing season.
As District taxpayers gather their documents and prepare for the filing season, OTR reminds them of several key changes that went into effect on October 1, 2023.
What’s New:
Tax Rate Schedule:
For tax year 2023, the DC income tax rate schedule is as follows:
Not over $10,000 |
4% of taxable income |
Over $10,000 but not over $40,000 |
$400 plus 6% of the excess over $10,000 |
Over $40,000 but not over $60,000 |
$2,200 plus 6.5% of the excess over $40,000 |
Over $60,000 but not over $250,000 |
$3,500 plus 8.5% of the excess over $60,000 |
Over $250,000 but not over $500,000 |
$19,650 plus 9.25% of the excess over $250,000 |
Over $500,000 but not over $1,000,000 |
$42,775 plus 9.75% of the excess over $500,000 |
Over $1,000,000 |
$91,525 plus 10.75% of the excess over $1M |
Standard Deduction:
The standard deduction has increased for Tax Year 2023 as follows:
- From $12,950 to $13,850 for single and married/registered domestic partner filers filing separately.
- From $19,400 to $20,800 for head of household filers.
- From $25,900 to $27,700 for married/registered partners filing jointly and qualifying widow(er) with dependent child(ren) filers.
- If born before January 2, 1958, or blind, an additional standard deduction of $1,500; ($1,850 if single or head of household).
District Earned Income Tax Credit (EITC):
- For this tax year, the DC EITC gives individuals and families 70% of their Federal EITC amount for tax year 2023, one of the highest match rates in the country. If your DC EITC is $1,200 or more your DC EITC will be paid in 12 equal monthly payments, pursuant to District law.
- For EITC Without Qualifying Children, the maximum credit amount has increased from $560 to $600.
- Beginning in tax year 2023, the EITC will be available to filers using an ITIN if they are otherwise eligible for the credit.
- For more information on the DC EITC, please visit: EITC.DC.gov.
Schedule H - Homeowner and Renter Property Tax Credit:
- The maximum property tax credit limit has increased from $1,250 to $1,325.
- Schedule H federal Adjusted Gross Income (AGI) eligibility threshold for under age 70 increased from $57,600 to $61,300.
- Schedule H federal AGI eligibility threshold for age 70 and older increased from $78,600 to $83,700.
Unemployment Insurance:
For taxable years beginning January 1, 2021, unemployment insurance benefits provided by the federal government, District of Columbia, and any other state, are excluded from the computation of District gross income.
Tax Filing at MyTax.DC.gov:
Taxpayers can file both their 2023 D-30 and D-40 forms and schedules as well as the standalone Schedule H tax return, at no cost, via the MyTax.DC.gov portal.
Filing Deadline:
The filing deadline to submit Tax Year 2023 individual income tax returns or an extension to file and pay tax owed is Monday, April 15, 2024.
For additional information, please visit MyTax.DC.gov or contact OTR’s Customer Service Center at (202) 727-4TAX (4829).