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District of Columbia Tax Rates Changes Take Effect Monday, October 1. Learn more here.

8 New Tax Types Are Coming to MyTax.DC.gov on October 29. Learn more here.

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District of Columbia Tax Rate Changes Effective October 1

Friday, September 29, 2017

Effective October 1, the following tax rate changes will apply as required by the Fiscal Year 2018 Budget Support Emergency Act of 2017:  

  • Sales and Use Taxes:

Parking or storing vehicles: The rate for sales or charges for the service of parking or storing vehicles will remain at 18 percent and will not increase to 22 percent as stated in the Fiscal Year 2016 Budget Support Emergency Act of 2015.

  • Hotel/Transient Accommodations:

The total rate of tax on gross receipts for the sale of or charges for any rooms, lodging or accommodations on or after October 1 will increase from 14.5 percent to 14.8 percent. The new rate of 14.8 percent applies to bookings made after October 1 that were not fully pre-paid for all room charges and applicable tax.   

Note: For bookings that were made and fully pre-paid before October 1, the 14.5 percent rate will still apply.

  • Real Property Taxes:  

First-time Homebuyers: The recordation tax for qualifying first-time homebuyers purchasing homes for a price that does not exceed $625,000 is reduced from the general rate of 1.45 percent to .725 percent.

For additional information, visit www.taxpayerservicecenter.com or call OTR’s Customer Service Center at (202) 727-4TAX (4829).