The Washington District of Columbia has increased the sales tax rate from 6% to 6.5%, effective 1 October 2025.
The sales tax rate will be further to 7% on 1 October 2026. The increase follows the district’s 2025 budget by the City Council and is now pending review by the US Congress.
Additionally, starting with tax years that begin after 31 December 2025, the corporate franchise tax will transition to a Finnigan-style apportionment.
This general state rate applies to tangible personal property and select services. Several higher rates are imposed on various services, including restaurants, vehicle rentals, and hotels.
