{"place":"Washington, DC","kind":"city","asOf":"2026-10-07","url":"https://gigaverse.ai/local/washington-dc","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":{"slug":"washington-dc","name":"Washington","stateCode":"DC","county":"District of Columbia (no county; the District is a single jurisdiction)","population":693645,"populationYear":2025,"localIncomeTax":{"applies":true,"name":"District of Columbia individual income tax","residentRate":null,"nonresidentRate":0,"selfEmployed":"DC residents (domiciled in DC at any time in the year, or keeping a place of abode there 183+ days) pay graduated DC income tax of 4% to 10.75% on taxable income, which includes self-employment and 1099 net profit. DC imposes its income tax on residents, so nonresidents who work in DC do not owe it, but a nonresident sole proprietor doing business in DC may owe the Unincorporated Business Franchise Tax instead.","effective":"Rates for tax years beginning after December 31, 2021 (4% up to $10,000; 6%; 6.5%; 8.5% over $60,000; 9.25% over $250,000; 9.75% over $500,000; 10.75% over $1,000,000)","source":"https://otr.cfo.dc.gov/page/dc-individual-and-fiduciary-income-tax-rates"},"localBusinessTaxes":[{"name":"DC Unincorporated Business Franchise Tax (UBT)","summary":"8.25% of taxable income for unincorporated businesses (including sole proprietors) with gross receipts over $12,000; owners deduct a 30% salary allowance and a $5,000 exemption, and the minimum tax is $250 ($1,000 if DC gross receipts exceed $1 million). Businesses earning more than 80% of gross income from the owners' personal services, where capital is not a material income-producing factor, are exempt.","source":"https://otr.cfo.dc.gov/page/dc-business-franchise-tax-rates"}],"businessLicense":{"required":true,"summary":"DC requires anyone doing business in the District to be licensed for their specific activity (most businesses need a Basic Business License), and a business run from a home must first get a Home Occupation Permit.","source":"https://dlcp.dc.gov/page/steps-obtaining-basic-business-license-0"},"gigLaws":[{"name":"DC minimum wage and tipped minimum wage (employees, including servers and bartenders)","summary":"As of July 1, 2026, DC's minimum wage is $18.40 per hour and the base wage for tipped employees is $10.30 per hour; if tips plus the base wage fall short of $18.40 (averaged weekly), the employer must pay the difference. This covers W-2 restaurant and bar workers, not independent contractors.","source":"https://does.dc.gov/service/office-wage-hour-compliance"}],"notes":"DC has no separate state, so the DC individual income tax is the only income tax (it plays the role of a state tax; do not add it on top of a 'state' DC rate). residentRate is null because the tax is graduated; the top rate is 10.75%. Resident definition: D.C. Code 47-1801.04 (https://code.dccouncil.gov/us/dc/council/code/sections/47-1801.04); the tax is imposed 'on the taxable income of every resident' under D.C. Code 47-1806.03 (https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03). UBT rate confirmed in D.C. Code 47-1808.03 (8.25% for tax years after 2017, $250/$1,000 minimum): https://code.dccouncil.gov/us/dc/council/code/sections/47-1808.03; the 80% personal-services exclusion is in D.C. Code 47-1808.01. DC minimum wage was $17.95 from July 1, 2025 to June 30, 2026. We found no DC-specific app-based or freelance worker pay ordinance."},"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/washington-dc/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/washington-dc/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/washington-dc/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/washington-dc/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/washington-dc/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/washington-dc/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/washington-dc/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}