Washington D.C. Sales Tax Guide & Nexus Calculator (2026)

Washington DC operates its own independent sales tax system as a federal district (not a state). The 6% rate applies to most transactions, and DC taxes digital goods including SaaS. DC has no local overlay rates — there is only one government level, so the 6% rate is all-inclusive.

Quick Reference

Criterion	Detail
Rate	6% (no state/local distinction — single jurisdiction)
Economic Nexus Threshold	$100,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Taxable
Typical Filing Frequency	Monthly
SST Member	No
Registration Portal	mytax.dc.gov

DC as a Jurisdiction

Washington DC is a federal district, not a state. It has its own Office of Tax and Revenue (OTR), its own sales tax law, and its own compliance requirements. DC is not a state and is not a member of the Streamlined Sales Tax program, but it operates with similar nexus and registration rules to the 50 states.

For sales tax purposes, treat DC as you would any non-SST state — register with OTR directly, collect at the 6% rate, and file with OTR.

Economic Nexus

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Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

DC’s economic nexus threshold is $100,000 in gross sales into DC in the current or prior 12-month period. Once exceeded, registration and collection are required.

Marketplace-facilitated sales count toward the threshold. There is no transaction count alternative threshold.

Tax Rate and Product Taxability

DC’s rate is 6%. There are no separate city, county, or district add-ons — DC is a single-jurisdiction territory. The 6% is the total rate for all DC sales.

Higher rates for specific categories:

• Restaurant meals and prepared food: 10%
• Alcoholic beverages: 10.25%
• Hotel/transient lodging: 14.95%
• Parking: 18%
• Commercial parking (unattended): 22%

These higher rates apply to specific industries. Standard retail e-commerce at 6%.

Product Categories

Taxable: Tangible personal property, digital goods (including SaaS), most retail goods.

Exempt: Prescription drugs, most groceries (food for home consumption is exempt from the 6% sales tax), qualifying medical equipment.

Digital Goods and SaaS

Washington DC taxes SaaS and digital goods. DC’s OTR has applied sales tax to digital transactions:

• SaaS — taxable
• Downloaded software — taxable
• Digital content (music, ebooks, streaming) — taxable
• Online subscriptions for digital products — taxable

DC is a clear taxable jurisdiction for digital sellers. Once you cross $100,000 in DC-destined revenue, register and collect.

Registration

DC is not an SST member. Register directly with the DC Office of Tax and Revenue.

1. Go to MyTax.DC.gov: mytax.dc.gov
2. Create an account and register for a Sales Tax Account
3. Provide EIN and business details
4. You will receive a DC Certificate of Registration

Registration is free.

Foreign Sellers

DC accepts foreign business registrations. A US EIN is required.

Filing Frequency and Deadlines

Annual Tax Liability	Filing Frequency
Less than $6,000	Quarterly
$6,000 or more	Monthly

Monthly due dates: Returns are due by the 20th of the following month.

Returns are filed through MyTax.DC.gov.

Compliance Notes

Single jurisdiction rate: DC’s 6% rate applies everywhere within the District — no ZIP code rate variations needed.

Not SST: DC is not an SST member. Multi-state SST registration does not cover DC.

Digital sellers: DC taxes SaaS. Register once you cross $100,000.

Dense, high-value market: DC’s small geographic area contains a dense population with high average order values. Many e-commerce sellers with national reach cross the $100,000 threshold here earlier than in larger but more spread-out states.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist