{"place":"District of Columbia","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/district-of-columbia","state":{"code":"DC","name":"District of Columbia","slug":"district-of-columbia","incomeTax":{"type":"progressive","flatRate2026":null,"lowestRate2026":4,"topRate2026":10.75,"topRateStartsSingle":1000000,"notes":"Rates are percentages. The same brackets apply to all filers: 4% up to $10,000, 6% to $40,000, 6.5% to $60,000, 8.5% to $250,000, 9.25% to $500,000, 9.75% to $1,000,000, and 10.75% above $1,000,000. This schedule has applied to tax years after 2021, and the 2026 D-40ES worksheet uses it.","source":"https://otr.cfo.dc.gov/page/dc-individual-and-fiduciary-income-tax-rates"},"estimatedTax":{"form":"D-40ES","rule":"You must make estimated payments if you are required to file a DC income tax return and expect to owe $100 or more.","schedule":"Same dates as federal: April 15, June 15 and September 15, 2026, and January 15, 2027.","source":"https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2026_D40ES_Book_wLinks04012026.pdf"},"minimumWage2026":{"standard":18.4,"tippedCash":10.3,"tipCreditAllowed":true,"notes":"$17.95 (tipped $10.00) through June 30, 2026, then $18.40 (tipped $10.30) from July 1, 2026. Rates are indexed to CPI each July 1. The tipped cash wage is 56% of the standard minimum from July 1, 2026 and steps up to 60% in July 2028, 65% in 2030, 70% in 2032 and 75% in 2034 (DC Attorney General, https://oag.dc.gov/worker-rights/wage-and-hour-laws). Employers must make up any shortfall if tips do not bring pay to the full minimum.","source":"https://does.dc.gov/sites/default/files/dc/sites/does/publication/attachments/2026%20Minimum%20Wage%20Increase%20Notice_0.pdf"},"soleProprietorTaxes":[{"name":"DC unincorporated business franchise tax (UBT)","summary":"Unincorporated businesses, including sole proprietorships, with DC gross receipts over $12,000 owe 8.25% on net income after a 30% owner salary allowance and a $5,000 exemption. The minimum tax is $250 for receipts of $1 million or less and $1,000 above that. A business is exempt if more than 80% of its gross income comes from the owners' personal services and capital is not a material income-producing factor. OTR's rate table lists 8.25% through tax year 2025.","source":"https://otr.cfo.dc.gov/page/dc-business-franchise-tax-rates"}],"contractorLaws":[{"name":"Workplace Fraud Act (construction)","summary":"In construction, workers are presumed to be employees. To treat one as an independent contractor, the company must prove the worker is free from its direction and control, is economically independent, and does work outside the company's core business.","source":"https://oag.dc.gov/worker-rights/wage-and-hour-laws"},{"name":"Paid Family Leave opt-in for self-employed workers","summary":"Sole proprietors, independent contractors and partners, including rideshare drivers, delivery workers, bloggers and consultants, may opt in to DC Paid Family Leave each November-December or within 60 days of becoming self-employed. They pay a contribution on DC gross self-employment income. To receive benefits they must have worked in DC more than 50% of the time. People who do not opt in when first eligible wait a year for benefits and must stay in for three years.","source":"https://does.dc.gov/sites/default/files/dc/sites/does/publication/attachments/PFL%20-%20Self%20Employed%20Fact%20Sheet%202021.pdf"}],"notes":"The DOES self-employed Paid Family Leave fact sheet dates from 2021, and its 0.62% contribution rate and benefit figures are out of date, so check the current rate with DOES."},"stateRetirementProgram":{"state":"District of Columbia","code":"DC","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"No enacted program and no auto-IRA mandate for private employers. Bill 26-230 in the 2025–26 Council proposed a universally available, voluntary program; it was introduced, not enacted.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/district-of-columbia/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/district-of-columbia/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/district-of-columbia/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/district-of-columbia/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/district-of-columbia/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/district-of-columbia/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/district-of-columbia/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}