District of Columbia Wage and Payroll Tax Facts

February 05, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the District of Columbia.

The District of Columbia (D.C.) imposes a substantially higher minimum wage rate than those required by the federal government in the Fair Labor Standards Act (FLSA). In fact, the D.C. minimum wage rates are more than double those of the federally required rates, even across tipped wages and tip credits. 

When it comes to processing payroll, D.C.-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated July 1, 2024. It is not intended as legal or tax advice.

D.C. Minimum Wage Rates

Wage Type

D.C. Rates

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



D.C. Income Tax Rates

D.C.'s income tax is progressive, meaning it adjusts based on the income level of the employee paying the tax.

Income Tax Bracket
[Over X] - [But not over Y]

2024 Income Tax Rate

$0 - $10,000 4.00% of excess over $0
$10,000 - $40,000 $400 + 6.00% of excess over $10,000
$40,000 - $60,000 $2,200 + 6.50% of excess over $40,000
$60,000 - $250,000 $3,500 + 8.50% of excess over $60,000
$250,000 - $500,000 $19,650 + 9.25% of excess over $250,000
$500,000 - $1,000,000 $42,775 + 9.75% of excess over $500,000
$1,000,000 or greater $91,525 + 10.75% of excess over $1,000,000


Additional D.C Income Tax Details

Supplemental Withholding Computation

Combine with regular wages for current or prior payroll and calculate the tax on the total. Subtract the tax withheld on the regular wages. 

Valid Filing Statuses

  • S = Single
  • MS = Married; filing separately
  • MJ = Married; filing jointly
  • H = Head of Household


  • Any services or individuals not subject to withholding under the Internal Revenue Code (IRC)
  • Those with no tax liability in the preceding year and none expected for the current year
  • Nonresidents
  • Certain persons in the legislative, judicial, and executive branches of the U.S. government are not considered residents and therefore are not taxed
  • Nonresident military servicemembers and spouses
  • Nonresident interstate carrier employees
  • Nonresident aliens

Form W-4

Form D-4

D.C. Unemployment Insurance (UI) Rates

UI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by local law) and meet D.C.'s eligibility requirements.

D.C. UI Tax Details

Taxable Wage Base


Employee Subject to Tax


Rates for Experienced Employers

1.90% - 7.40%

Rates for New Employers


Effective Period

Calendar Year

Voluntary Contributions Allowed


Administrative Funding Assessments


D.C. Disability Insurance (DI) Rates

DI benefits are normally funded by employees through mandatory payroll deductions from each paycheck. D.C., however, doesn't require employers to collect a DI tax.

Miscellaneous D.C. Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. D.C. currently has reciprocal agreements with the following states:

  • Maryland
  • Virginia

Residents of these states need to submit Form D-4A to confirm their non-residency.

Paid Sick Leave (PSL) Taxes

D.C. doesn't require employers to collect PSL taxes, but it does have a program providing such leave to eligible employees:

D.C. PSL Details

Covered Employees

All except the following:

  • Independent contractors, students, and healthcare workers who choose to participate in a premium pay program
  • Construction workers covered by a bona fide collective bargaining agreement that clearly and unambiguously waives paid leave requirements
Accrual Method(s)

Varies based on employer size:

  • 24 or fewer employees = 1 hour per 87 hours worked
  • 25 - 99 employees = 1 hour per 43 hours worked
  • 100 or more employees = 1 hour per 37 hours worked
Annual Accrual Maximum

Varies based on employer size:

  • 24 or fewer employees = 3 days per year
  • 25 - 99 employees = 5 days per year
  • 100 or more employees = 7 days per year
Probationary Period 90 days
FAQs DOES Public Education Campaign

Paid Family and Medical Leave (PFML) Taxes

Similar to UI, D.C.'s Paid Family Leave (PFL) benefits are funded by employers through a recurring payroll tax. This applies to self-employed individuals who have opted into the PFL program as well as non-profit organizations

Every quarter, employers pay a 0.26% tax on each employee's quarterly gross wages, provided those employees either spend more than 50% of their time working in D.C. or have their employment based in D.C. and don't work more than 50% of their time in another jurisdiction.

D.C. Employer Registration

The below agencies can help with your employer registration, including best practices, account numbers, and unemployment information. Contact the Office of Tax and Revenue for withholding tax topics and the Department of Employment Services for unemployment tax topics.

Registration Details

Office of Tax and Revenue Department of Employment Services


(202) 727-4829 (202) 698-7550

Online Registration

MyTax DC Homepage DOES Employer Registration Portal
Registration Instructions 

Online registration is available. Account numbers will be issued in 3-5 days via online process.

Separate account numbers for each tax type will be issued under the combined registration. 

Employer Self-Service Login MyTax DC Homepage DOES Employer Login Page

Additional D.C. Payroll Tax Resources


This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.


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