Self-employed in District of Columbia: taxes and retirement for 2026

What consultants, freelancers, content creators, entrepreneurs, gig workers, tipped workers and tradespeople in District of Columbia need to know this year: District of Columbia income and estimated tax rules, and how to save for retirement without an employer plan.

Guides for District of Columbia

Consultants in District of Columbia Freelancers in District of Columbia Content Creators in District of Columbia Entrepreneurs in District of Columbia Gig Workers in District of Columbia Bartenders & Servers in District of Columbia Construction & Trades in District of Columbia

District of Columbia rules that apply

State income tax (2026): District of Columbia has a graduated state income tax for 2026: 4% to 10.75% (top rate starts at $1,000,000 for single filers). 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.
State estimated tax: You must make estimated payments if you are required to file a DC income tax return and expect to owe $100 or more. Same dates as federal: April 15, June 15 and September 15, 2026, and January 15, 2027. Form D-40ES.
DC unincorporated business franchise tax (UBT): 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.
Minimum wage (2026): $18.40 an hour; tipped cash wage $10.30 an hour. $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.
Workplace Fraud Act (construction): 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.
Paid Family Leave opt-in for self-employed workers: 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.

Cities in District of Columbia

Washington

Questions

Do self-employed people in District of Columbia pay state income tax?

District of Columbia has a graduated state income tax for 2026: 4% to 10.75% (top rate starts at $1,000,000 for single filers). 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.

When are District of Columbia estimated tax payments due for 2026?

You must make estimated payments if you are required to file a DC income tax return and expect to owe $100 or more. Same dates as federal: April 15, June 15 and September 15, 2026, and January 15, 2027. The state form is D-40ES.

Are there other District of Columbia taxes for self-employed self-employed people?

DC unincorporated business franchise tax (UBT): 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.

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Sources

Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.