Overview
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.
State Income Tax (SIT)
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.
| Tax Structure | Progressive with rates up to 10.67% |
| State Withholding Form | Form D-4 |
| Filing Statuses | S, M, H |
| Supplemental Rate | 10.67% |
Supplemental Wages
District of Columbia supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 10.67%.
Employer State Unemployment Tax (SUTA)
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%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 2.7% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
Paid Family Leave Insurance: District of Columbia has a paid family leave program that provides wage replacement benefits for qualifying family and medical events. Both employers and employees may be required to contribute, depending on the program’s structure.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to: DC Office of Tax and Revenue
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