District of Columbia — Personal Income Tax

The District of Columbia imposes personal income tax on residents, part-year residents, and certain nonresidents who maintain a place of abode in the District for 183 days or more.

## Residents

Every individual having gross income for the taxable year that equals or exceeds the applicable basic standard deduction must file a D.C. personal income tax return (Form D-40). Under D.C. Code § 47-1805.02(1), as amended by D.C. Law 26-89 (effective February 12, 2026), the filing threshold is tied solely to the District's standard deduction amounts—not to federal filing requirements. The prior statute required D.C. residents to file if they were required to file a federal return under IRC § 6012; that language was removed by the 2026 amendment.

For tax years beginning after December 31, 2024, the basic standard deduction is $15,000 for single filers and married individuals filing separately; $22,500 for head of household filers; and $30,000 for married individuals filing jointly, separate on a combined return, or surviving spouses.

Temporary legislation and sunset. D.C. Law 26-89 is temporary legislation that expires 225 days after its effective date (September 25, 2026). The statute does not specify what filing-requirement rule will apply after the temporary law expires. The D.C. Council is expected to enact permanent legislation before the sunset date; absent permanent replacement, it is unclear whether the law would revert to the prior federal-filing-requirement standard or remain tied to the D.C. standard deduction.

Source: D.C. Code § 47-1805.02(1); D.C. Law 26-89, § 2(f); D.C. Code § 47-1801.04(3A)

A "resident" includes any individual domiciled in the District at any time during the taxable year. Residents are taxed on their entire net income, regardless of where it is earned.

Source: D.C. Code § 47-1801.04(42); D.C. Code § 47-1806.01

## Statutory Residents (183-Day Rule)

An individual who is not domiciled in the District but who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year is treated as a "resident" for D.C. tax purposes, whether or not the individual is domiciled in the District. Statutory residents must file Form D-40 if they meet the gross income threshold and are taxed on their entire net income for the year, the same as domiciliary residents.

The statute defines "resident" to include "every other individual who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year, whether or not the individual is domiciled in the District." The 183-day test applies to the aggregate number of days during the taxable year, and D.C. Office of Tax and Revenue guidance indicates that every day the taxpayer is in the District and maintains a place of residence counts toward the threshold, including days of temporary absence.

Source: D.C. Code § 47-1801.04(42); D.C. Office of Tax and Revenue, Audit Division FAQs

## Part-Year Residents

Individuals whose permanent residence (domicile) was in the District for part of the taxable year are considered part-year residents. Part-year residents must file Form D-40 if they meet the gross income threshold. They must prorate their standard deduction and personal exemptions (for tax years before 2025 when exemptions were allowed) to the portion of the year they were District residents.

Source: D.C. Office of Tax and Revenue, Non-Filer FAQs

## Exemptions for Certain Federal Officials

Certain federal officials are not considered D.C. residents even if they reside in the District during their tenure. The statutory definition of "resident" excludes:

• Elected federal officers and legislative staff. Any elective officer of the federal government or any employee on the staff of an elected official in the legislative branch if the employee is a bona fide resident of the state of residence of the elected officer.
• Presidentially appointed executive officers. Any officer of the executive branch whose appointment was made by the President and is subject to confirmation by the Senate and whose tenure of office is at the pleasure of the President.
• U.S. Supreme Court Justices. Any Justice of the Supreme Court of the United States.

The exclusions do not apply if the officer, employee, or Justice is domiciled within the District at any time during the taxable year. If domiciled in the District, the individual is treated as a D.C. resident for income tax purposes.

Source: D.C. Code § 47-1801.04(42)

## Reciprocity with Maryland

Unable to confirm as of 2026-06-01.

The District of Columbia imposes a graduated personal income tax with seven brackets, ranging from 4% to 10.75%. For tax years beginning on or after January 1, 2022, the rates apply to all filing statuses (single, married filing jointly, married filing separately, and head of household) with identical bracket thresholds: 4% on taxable income up to $10,000; 6% on income over $10,000 but not over $40,000; 6.5% on income over $40,000 but not over $60,000; 8.5% on income over $60,000 but not over $250,000; 9.25% on income over $250,000 but not over $500,000; 9.75% on income over $500,000 but not over $1,000,000; and 10.75% on income over $1,000,000.

Source: D.C. Code § 47-1806.03; 2025 D-40 Individual Income Tax Forms and Instructions, p. 8

For tax years beginning after December 31, 2024, the District of Columbia basic standard deduction is $15,000 for single filers and married individuals filing separately; $22,500 for head of household filers; and $30,000 for married individuals filing jointly, separate on a combined return, or surviving spouses. The total standard deduction also includes the additional standard deduction for taxpayers age 65 or older or blind as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986. For tax years beginning after December 31, 2025, these amounts will be adjusted annually for cost-of-living increases.

Source: D.C. Code § 47-1801.04(3A) & (44)

The District of Columbia repealed personal exemptions for tax years beginning after December 31, 2024. D.C. Code § 47-1806.02, which previously allowed residents to claim personal exemptions as deductions in computing taxable income, has been repealed. For tax years before 2025, residents could claim exemptions for the taxpayer, spouse, dependents, head of household status, and individuals age 65 or older. The repeal was enacted through emergency legislation in 2024 and subsequently made permanent through temporary legislation.

Source: D.C. Act 26-214, § 2(h); D.C. Law 26-89, § 2(h)

District of Columbia personal income tax returns are due on or before April 15 for calendar-year taxpayers. For fiscal-year filers, returns are due on or before the 15th day of the fourth month following the close of the fiscal year. When April 15 falls on a weekend or District holiday, the deadline shifts to the next business day.

Source: D.C. Code § 47-1805.03(a)(2)

The repeal of personal exemptions under D.C. Code § 47-1806.02 is enacted through temporary legislation that expires on September 25, 2026. The District of Columbia has not published guidance clarifying whether personal exemptions will remain repealed, be restored, or require new permanent legislation for tax years beginning after the temporary law expires.

## The Temporary Repeal

D.C. Law 26-89 (D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025) repealed D.C. Code § 47-1806.02, which previously allowed residents to claim personal exemptions as deductions in computing taxable income. The repeal applies to tax years beginning after December 31, 2024. D.C. Law 26-89 is temporary legislation effective February 12, 2026, and expires 225 days later on September 25, 2026.

The temporary law was preceded by emergency legislation (D.C. Act 26-214, effective December 3, 2025) that enacted the same repeal on an emergency basis. Emergency legislation in the District of Columbia is effective for 90 days; temporary legislation extends the change for an additional 225 days.

Source: D.C. Law 26-89, § 2(h); D.C. Act 26-214, § 2(h)

## Sunset Date and Unanswered Questions

D.C. Law 26-89 expires on September 25, 2026. The D.C. Code annotations for sections amended by D.C. Law 26-89 state: "This section includes amendments by temporary legislation that will expire on September 25, 2026. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version."

For D.C. Code § 47-1806.02 (personal exemptions), the temporary law repealed the entire section. The annotations refer to a "permanent version" that would be in effect after the temporary legislation expires, but neither the statute nor the annotations specify what legal effect the expiration of a temporary repeal has: whether the repealed section remains repealed absent further Council action, whether it reverts to a prior permanent version, or whether new permanent legislation is required.

As of June 1, 2026, the D.C. Office of Tax and Revenue has not published guidance addressing what happens to personal exemptions for tax years beginning in 2027 if the temporary law expires without permanent replacement legislation.

Source: D.C. Code § 47-1806.02 (annotated version)

## Current Status for Tax Years 2025 and 2026

For tax year 2025 (returns due April 15, 2026) and tax year 2026 (returns due April 15, 2027): Personal exemptions are repealed under D.C. Law 26-89. Taxpayers may not claim personal exemptions on their D.C. returns for these years. The temporary law is in effect for both tax years.

Source: D.C. Law 26-89, § 2(h)

## Open Question for Tax Years Beginning in 2027

For tax year 2027 and beyond: The legal status of personal exemptions is uncertain if the D.C. Council does not enact permanent legislation before the temporary law expires on September 25, 2026.

The temporary law itself does not address what happens after expiration. District of Columbia legislative practice has historically followed a pattern of enacting permanent legislation while temporary legislation is still in effect, but as of June 1, 2026, no permanent legislation addressing personal exemptions has been introduced.

The D.C. Office of Tax and Revenue has not issued guidance clarifying:

• Whether personal exemptions remain repealed after the temporary repeal expires,
• Whether D.C. Code § 47-1806.02 reverts to a prior permanent version after September 25, 2026, or
• What exemption amounts, if any, would apply if § 47-1806.02 were restored.

Practitioners preparing 2027 returns (due April 15, 2028) should monitor for permanent legislation through fall 2026 and should request clarification from the Office of Tax and Revenue if the temporary law expires without replacement.

Source: D.C. Law 26-89, legislative history and effective dates

Every employer making payment of wages to any employee in the District of Columbia must deduct and withhold District income tax from those wages. The withholding obligation applies to wages paid to D.C. residents, including individuals subject to the statutory 183-day residency rule, but does not apply to nonresidents working in the District.

## Withholding Methods

Employers must determine the amount to withhold using one of two methods prescribed in D.C. Code § 47-1812.08(b)(1): (A) a percentage method of withholding similar in principle to Internal Revenue Code § 3402, or (B) withholding tables similar in principle to those contained in IRC § 3402. Beginning with tax year 2017, employers must use a Federal Employer Identification Number (FEIN) for withholding purposes; Social Security Numbers are no longer permitted.

Employees complete Form D-4 (Employee's Withholding Allowance Certificate) to establish the number of withholding allowances. Nonresidents must file Form D-4A (Certificate of Nonresidence) with their employer to establish that they are not subject to D.C. income tax withholding. No allowance for the standard deduction is permitted when calculating withholding under either method.

Source: D.C. Code § 47-1812.08(b)

## Payment and Filing Schedules

The District determines each employer's withholding payment frequency based on the amount of tax withheld. Employers file quarterly returns on Form FR-900Q, due by the 20th day of the month following the end of each calendar quarter (April 20, July 20, October 20, and January 20). Employers with annual withholding less than $200 file Form FR-900A annually, due January 31, with deposits due by January 20 for the preceding calendar year.

Employers with monthly withholding of $1,201 or more must file monthly returns on Form FR-900M. Employers with monthly withholding between $201 and $1,200 file quarterly on Form FR-900Q. The Office of Tax and Revenue assigns and notifies employers of their filing frequency, which may change based on actual withholding amounts.

Beginning January 1, 2019, any employer with a household employee must obtain an FEIN and report such withholding using Form FR-900Q, regardless of the withholding amount.

Source: D.C. Office of Tax and Revenue, Withholding Tax Forms

## Trust Fund Status and Liens

All sums withheld under D.C. Code § 47-1812.08 are deemed to be held in trust by the employer for the District of Columbia. The District has a statutory lien upon all property of any employer who fails to withhold or pay over withheld sums to the Chief Financial Officer. If the employer withholds but fails to pay over the amounts withheld, the lien accrues on the date the amounts were withheld. If the employer fails to withhold, the lien accrues on the date the amounts were required to be withheld. These liens constitute a preferred claim with priority over all other liens or security interests.

Interest is assessed on deficiencies and late payments of withheld income tax at the rate set forth in D.C. Code § 47-4201, calculated from the date prescribed for payment until paid.

Source: D.C. Code § 47-1812.08(f), (k)

## Annual Reconciliation

Beginning for statements due after December 31, 2011, each employer required to withhold income tax must prepare a statement for each employee showing information for the previous calendar year as required by the Chief Financial Officer. Employers reconcile their quarterly or monthly filings with W-2 information by filing Form FR-900A annually by January 31.

Source: D.C. Code § 47-1812.08(n)

Nonresidents who are not subject to the 183-day statutory residency rule must file a District of Columbia personal income tax return (Form D-40) if they have gross income from D.C. sources that equals or exceeds the applicable basic standard deduction. The filing requirement applies even when the nonresident's only D.C.-source income is not subject to Maryland/Virginia reciprocity (such as rental income, business income, or capital gains).

## Scope of D.C.-Source Income for Nonresidents

Nonresidents are taxed on "that portion of the entire net income of every nonresident which is subject to tax under §§ 47-1808.01 to 47-1808.06," the unincorporated business tax provisions. D.C. Code § 47-1808.01 defines "unincorporated business" to include "any trade or business, conducted or engaged in by any individual, whether resident or nonresident." This includes income from operating a business in D.C., rental income from D.C. real property, and other D.C.-source business or investment income.

Source: D.C. Code § 47-1806.01; D.C. Code § 47-1808.01

Nonbusiness income such as rents, royalties, and capital gains is allocated to D.C. under § 47-1810.02. Net rents from real property located in D.C. are allocable to D.C. Capital gains from the sale of real property located in D.C. are likewise allocable to D.C.

Source: D.C. Code § 47-1810.02(c)(2)

## Filing Threshold

For tax years beginning after December 31, 2024, a nonresident must file Form D-40 if D.C.-source gross income equals or exceeds the basic standard deduction: $15,000 for single filers and married individuals filing separately; $22,500 for head of household filers; and $30,000 for married individuals filing jointly or surviving spouses.

The 2026 amendment to D.C. Code § 47-1805.02(1), enacted by D.C. Law 26-89, removed the prior rule that tied the D.C. filing requirement to the federal filing requirement under IRC § 6012. The statute now applies the same gross-income threshold to both residents and nonresidents. The threshold is tied solely to the District's standard deduction amounts, not to federal filing requirements.

Source: D.C. Code § 47-1805.02(1); D.C. Law 26-89, § 2(f); D.C. Code § 47-1801.04(3A)

## Form Selection — D-40 vs. D-40B

Nonresidents with a filing obligation use Form D-40 (Individual Income Tax Return) to report D.C.-source income and pay any tax due. Form D-40B (Nonresident Request for Refund) is used only by nonresidents seeking a refund of D.C. income tax that was withheld in error—for example, a Maryland or Virginia resident whose employer erroneously withheld D.C. tax on wage income that is exempt under the reciprocity agreement. Form D-40B is not a substitute for Form D-40 when the nonresident has a filing obligation.

Source: 2025 D-40 Individual Income Tax Forms and Instructions

The District of Columbia maintains reciprocity agreements with Maryland and Virginia that exempt qualifying nonresidents from D.C. income tax on specific categories of income earned in the District. The scope of these agreements is narrowly defined: they apply only to wages, salaries, and other compensation for personal services rendered as an employee. The agreements do not cover self-employment income, partnership income, S-corporation distributions, rental income, capital gains, or other non-wage income.

## Authoritative Basis — Administrative Practice and Virginia Parallel Statute

The D.C.–Maryland and D.C.–Virginia reciprocity arrangements are not codified in the D.C. Code. An exhaustive search of Title 47 (taxation) of the D.C. Code finds no statute that explicitly authorizes the Chief Financial Officer or Mayor to enter into reciprocal income tax agreements with other jurisdictions. (D.C. Code § 47-2351 authorizes reciprocal agreements under the International Fuel Tax Agreement, and § 47-4440 addresses reciprocal refund offset, but neither applies to income tax reciprocity.)

Instead, the reciprocity arrangements are administrative practice reflected in official D.C. Office of Tax and Revenue forms and guidance:

• Form D-4A (Certificate of Nonresidence in the District of Columbia), which Maryland and Virginia residents file with D.C. employers to prevent D.C. withholding on wage income.
• Form D-40B (Nonresident Request for Refund), which Maryland and Virginia residents use to reclaim D.C. tax erroneously withheld on wages.
• D.C. OTR guidance confirming that nonresidents from Maryland and Virginia are exempt from D.C. taxation on wages and salaries earned in D.C.

Virginia has express statutory authority for its reciprocal agreements: Virginia Code § 58.1-342 B grants the Virginia Department of Taxation the authority to enter into reciprocal agreements with other states "to exempt nonresidents from the Virginia income tax when they earn salaries and wages from working in Virginia if such other states similarly exempt Virginia residents." The D.C.–Virginia reciprocity operates on this statutory foundation from the Virginia side. Maryland has parallel authority under Maryland Tax-General Code § 10-103(b).

Because D.C. lacks its own explicit statutory authorization for income tax reciprocity, practitioners should treat the reciprocity as longstanding administrative practice supported by the mirror-image statutes in Virginia and Maryland, rather than as a creature of D.C. Code.

Source: D.C. Office of Tax and Revenue, Form D-4A Instructions; Virginia Code § 58.1-342

## What Income Is Covered

Under the reciprocity agreements, Maryland and Virginia residents who work in the District as employees are exempt from D.C. income tax on their wages, salaries, and other compensation for personal services. Symmetrically, D.C. residents who work in Maryland or Virginia as employees are exempt from Maryland or Virginia income tax on those wages.

Virginia law, which parallels the D.C. arrangement, defines the scope of reciprocity in Virginia Code § 58.1-342 B, which authorizes reciprocal agreements "to exempt nonresidents from the Virginia income tax when they earn salaries and wages from working in Virginia if such other states similarly exempt Virginia residents." Virginia further defines "compensation" in § 58.1-302 as "wages, salaries, commissions and any other form of remuneration paid or accrued to employees for personal services." Virginia Tax Commissioner rulings consistently hold that the reciprocal agreements apply only to employee compensation, not to independent-contractor fees or honoraria.

The District's reciprocity agreements operate on the same principle: only W-2 wage income earned by employees is exempt. Income reported on Form 1099-NEC (independent contractor), Schedule C (self-employment), Schedule E (rental or partnership), or Schedule K-1 (S-corporation or partnership distributions) does not qualify for the reciprocity exemption.

Source: Virginia Code § 58.1-342; Virginia Tax Ruling 14-133; 23 Va. Admin. Code § 10-140-230

## What Income Is Not Covered

The reciprocity agreements do not apply to:

• Self-employment income. A Maryland or Virginia resident who operates a consulting business, law practice, or other trade or business in D.C. as a sole proprietor (reporting income on federal Schedule C) is not exempt from D.C. tax on that income. The individual must file a D.C. nonresident return (Form D-40) and pay D.C. tax on the net self-employment income sourced to D.C.

• Partnership and S-corporation income. A Maryland or Virginia resident who is a partner in a D.C. partnership or a shareholder in an S-corporation doing business in D.C. must report and pay D.C. tax on the distributive share of income allocable to D.C., even if the individual does not perform personal services in D.C. This income is not "compensation" under the reciprocity agreements.

• Independent-contractor fees. Payments to non-employees for professional services (reported on Form 1099-NEC) are not covered. In Virginia Tax Ruling 14-133, the Tax Commissioner held that an honorarium paid to a Virginia resident by a Pennsylvania university for teaching a class did not qualify for reciprocity because the individual was an independent contractor, not an employee. The same principle applies to the D.C.–Maryland and D.C.–Virginia agreements.

• Rental income and capital gains. Rental income from D.C. real property and capital gains from the sale of D.C. real property are allocable to D.C. under D.C. Code § 47-1810.02 and are taxable to nonresidents. Reciprocity does not apply.

• Investment income. Interest, dividends, and capital gains on securities are generally not D.C.-source income for nonresidents, but to the extent they are (e.g., from a D.C. business), reciprocity does not exempt them.

Source: Virginia Tax Ruling 14-133 (9/22/2014); D.C. Code § 47-1810.02

## Withholding Certificates and Refund Claims

Maryland and Virginia residents who work in D.C. as employees should file Form D-4A (Certificate of Nonresidence in the District of Columbia) with their employer to prevent D.C. withholding. If D.C. tax was withheld in error, the employee files Form D-40B (Nonresident Request for Refund) with the D.C. Office of Tax and Revenue to claim a refund. Form D-40B is used only for reciprocity-eligible wage income that was erroneously withheld; it is not a substitute for Form D-40 when the nonresident has a filing obligation for non-wage D.C.-source income.

Conversely, D.C. residents working in Maryland or Virginia should file the corresponding state certificate (Maryland Form MW507 or Virginia Form VA-4) to prevent withholding by the work state.

Source: D.C. Office of Tax and Revenue, Form D-4A Instructions; Virginia Tax Reciprocity Information

## Dual Residents and the Reciprocity Agreements

The reciprocity agreements do not apply to individuals who are residents of both jurisdictions during the tax year. A person who is domiciled in Virginia but maintains a place of abode in D.C. for 183 days or more (and thus meets D.C.'s statutory residency rule) is a "dual resident" and is not eligible for reciprocity. Both jurisdictions will tax the individual as a resident, and the individual may claim a credit for tax paid to the other jurisdiction under the general credit-for-taxes-paid rules, but reciprocity does not apply.

Source: Virginia Tax Ruling 21-35 (3/16/2021); D.C. Code § 47-1801.04(42)

## Summary and Practitioner Notes

Reciprocity = employee W-2 wages only. If the income is on a W-2 and the individual is an employee, reciprocity applies. If the income is on a 1099, Schedule C, Schedule E, or Schedule K-1, it does not. Nonresidents with D.C.-source income outside the scope of reciprocity must file Form D-40, allocate the income to D.C., and pay D.C. tax. They may claim a credit on their home-state return for the D.C. tax paid, subject to the home state's credit limitations.

Statutory gap. Unlike Virginia and Maryland, D.C. has no explicit statute authorizing the CFO to enter into income tax reciprocity agreements. The reciprocity is administrative practice, evidenced by official forms (D-4A, D-40B) and supported by the mirror-image statutes in Virginia (Va. Code § 58.1-342) and Maryland (Md. Tax-Gen. § 10-103(b)).