Dist of Columbia

Tax Rate Range: (2007) Low - 4.0%; High - 8.5%
Income Brackets: Lowest - $10,000; Highest - $40,000
Number of Brackets: 3
Tax Credits: Single - $1,370; Married - $2,740; Dependents - $1,370
Standard Deduction: Single - $1,000; Married filing joint return - $2,000
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt. Taxpayers 62 and older can exclude $3,000 of military, federal, and state/local pensions. All state government pensions are fully taxed.

State Tax Software

Retired Military Pay: Up to $3,000 of military retirement pay excluded for individuals 62 or older, Survivor benefits are taxable.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

State Sales Tax: 5.75% (food, prescription and non-prescription drugs, residential utility services exempt)
Gasoline Tax: 20 cents/gallon
Diesel Fuel Tax: 20 cents/gallon
Cigarette Tax: $1.00/pack of 20

Property is assessed at 100% of market value. Taxes on owner-occupied real estate are $0.88 per $100 of assessed value. The first $60,000 of assessed value is exempt from taxes. Several property tax relief programs are available to assist property owners and first time home buyers. These include a homestead deduction, tax credits for historic properties, senior citizen tax relief and property tax exemptions and deferrals. Homeowners 65 and older with household adjusted gross income of less than $100,000 receive an additional exemption equal to 50 percent of their homestead deduction. Click here for details. Call 202-727-1000 for more information.
Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax.