District of Columbia Tax Guide for Employers (2026) 

The District of Columbia has its own income tax system separate from any state. DC uses a progressive rate structure and has a Paid Family Leave program funded by employers. DC also has relatively high income tax rates compared to many states. 

DC imposes a progressive income tax on wages earned within the District. Employees complete Form D-4 to establish their filing status and withholding preferences. DC’s tax brackets feature rates that can reach over 10% for higher earners. The District also administers a Universal Paid Leave program that requires employer contributions. 

District of Columbia supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 10.67%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.7%. 

District of Columbia requires contributions to D.C. Universal Paid Leave (UPL). Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://otr.cfo.dc.gov/page/withholding-tax.

Follow these steps to begin withholding District of Columbia payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the D.C. Office of Tax and Revenue at mytax.dc.gov
3. Register for SUTA with the D.C. Department of Employment Services at does.dc.gov
4. Submit a Netchex tax team request to enable D.C. SIT, SUTA, and UPL
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all District of Columbia payroll taxes on your behalf. 

The following are general filing and deposit deadlines for District of Columbia payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at DC Office of Tax and Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with DC Office of Tax and Revenue at https://otr.cfo.dc.gov/page/withholding-tax. 

The following official resources will help you stay current on District of Columbia payroll tax requirements: 

• DC Office of Tax and Revenue
• D.C. Universal Paid Leave
• D.C. Form D-4

What form do D.C. employees complete? 

Employees complete Form D-4, the D.C. Employee Withholding Allowance Certificate. 

Does D.C. have a Paid Family Leave program? 

Yes. D.C.’s Universal Paid Leave (UPL) program is funded by employer contributions. Verify rates at dcpaidfamilyleave.dc.gov. 

What is D.C.’s SUTA wage base? 

D.C.’s SUTA wage base is $9,000 per employee per year. Verify at does.dc.gov. 

What is D.C.’s top income tax rate? 

D.C.’s top marginal income tax rate is 10.75% for high earners. 

Does D.C. have local payroll taxes beyond SIT? 

D.C. has its Universal Paid Leave employer tax in addition to standard SIT and SUTA requirements.