The DC sales tax rate is 6% on most goods and taxable services sold in Washington, D.C. Some items carry higher special rates, such as 10% on restaurant meals and 15.95% on hotel stays. The District had planned to raise the general rate to 7%, but lawmakers delayed that increase, and it is now scheduled for October 1, 2027. Because D.C. has no counties or cities with their own sales taxes, one rate applies across the whole District. This guide explains the current rates, what is exempt, who must collect the tax, and how D.C. compares with Maryland and Virginia.
DC sales tax: quick facts
| Topic | Details |
|---|---|
| General sales tax rate | 6% |
| Scheduled increase | 7% from October 1, 2027 (delayed twice) |
| Restaurant meals and prepared food | 10% |
| Hotel and other lodging | 15.95% |
| Alcohol sold for off-premises use | 10.25% |
| Soft drinks | 8% |
| Local add-on taxes | None; one District-wide rate |
| Administered by | DC Office of Tax and Revenue (OTR) |
What is the current DC sales tax rate?
The general DC sales and use tax rate is 6%. It applies to sales of tangible goods, digital goods and many taxable services. According to the DC Office of Tax and Revenue, the general rate remains 6% through September 30, 2027.
The increase to 7% has a short history. First, the District’s Fiscal Year 2025 budget law set a rise for October 1, 2025. Next, the Council pushed it back to October 1, 2026. Finally, the Fiscal Year 2027 Budget Support Act delayed it again, to October 1, 2027. As a result, shoppers still pay 6% today.
Special DC sales tax rates
Some purchases are taxed at higher rates. For example:
- Restaurant meals and prepared food: 10%, which also covers alcohol served for drinking on the premises.
- Alcohol for off-premises use: 10.25%, such as wine or beer bought at a liquor store.
- Hotels and short-term lodging: 15.95%.
- Soft drinks: 8%.
- Rental vehicles: a separate, higher rate that the FY2027 budget law raised to 11% for charges after September 30, 2026.
- Parking: commercial parking also carries its own special rate.
In addition, rates can change with each annual budget, so check OTR’s current notices before you rely on a figure.
What is exempt from DC sales tax?
- Groceries and other unprepared food for home consumption
- Prescription drugs and many medical devices
- Sales to qualifying nonprofit and government organizations with a valid exemption certificate
- Most professional services, such as legal and medical services
However, prepared food is taxable even when bought at a grocery store, because it falls under the 10% prepared-food rate.
Who must collect DC sales tax?
Any business that sells taxable goods or services in the District must register with OTR, collect the tax from customers and send it to the District. Remote sellers, including online stores, must collect DC sales tax once they have more than $100,000 in DC sales or 200 or more separate DC transactions in a year. Marketplace facilitators, such as large online marketplaces, generally collect the tax for their third-party sellers.
How to register and file
- Register. Create an account and apply for a sales tax registration on MyTax.DC.gov.
- Collect the tax. Charge the correct rate on each taxable sale and show it on receipts.
- Keep records. Save sales records and exemption certificates for audits.
- File returns. Most businesses file monthly, with returns and payment due by the 20th of the following month.
- Watch for rate changes. Update your point-of-sale system before any new rate takes effect.
DC use tax
DC use tax applies when you buy a taxable item without paying DC sales tax and then use it in the District, for example from an out-of-state seller that did not collect the tax. The use tax rate matches the sales tax rate. Businesses report use tax on their returns, while individuals can report it on their DC income tax return.
How DC compares with Maryland and Virginia
| Jurisdiction | General sales tax rate |
|---|---|
| Washington, D.C. | 6% (7% scheduled for October 1, 2027) |
| Maryland | 6% statewide, plus a 3% tax on certain IT and data services since July 2025 |
| Virginia | 5.3% in most areas; 6% in Northern Virginia and some other regions |
As a result, a shopper in the D.C. area pays a similar general rate in all three places. However, special rates for meals, hotels and alcohol vary widely. If you also follow D.C. labor rules, see our guide to the DC minimum wage.
Conclusion: what to know about DC sales tax
The DC sales tax rate is 6% on most purchases, with special rates such as 10% on restaurant meals and 15.95% on hotels. The planned increase to 7% has been delayed to October 1, 2027. Groceries and prescription drugs are exempt, and businesses, including remote sellers above the $100,000 or 200-transaction threshold, must register with OTR and file through MyTax.DC.gov.
Tax rules change with each budget, so check OTR before filing, and talk to a licensed tax professional about your situation. For more on payroll taxes, read our guide to Social Security tax withholding, and browse our Law section.
Frequently asked questions
What is the sales tax in Washington, D.C.?
The general rate is 6%. Restaurant meals are taxed at 10%, hotel stays at 15.95%, and off-premises alcohol at 10.25%.
Is DC sales tax going up to 7%?
Yes, but not yet. The increase was delayed twice and is now scheduled for October 1, 2027.
Are groceries taxed in DC?
No. Unprepared food for home use is exempt. Prepared food, however, is taxed at 10%.
Do online sellers have to collect DC sales tax?
Yes, once they have more than $100,000 in DC sales or 200 or more DC transactions in a year.
When are DC sales tax returns due?
Most businesses file monthly, and returns are due by the 20th of the following month.
Sources
- DC Office of Tax and Revenue: Notice of Oct. 1, 2025 tax changes (with 2027 update)
- Thomson Reuters Tax: District of Columbia 2027 budget support legislation becomes law
- D.C. Code § 47-2202: Imposition of sales tax
- MyTax.DC.gov: business registration and filing
Last updated: October 14, 2026.