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L3i
State guide

District of Columbia sales & use tax.

The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.

State rate
6%
state-level base rate
Economic nexus
$100,000
or 200 transactions · since January 1, 2019
Marketplace law since
April 1, 2019
facilitators must collect

District of Columbia: rate, nexus & administration.

State rate
6%
Local rates
Single district-wide rate; higher category rates for meals, hotels, and parking
Economic nexus
$100,000 or 200 transactions · effective January 1, 2019Controlling authority: D.C. Code § 47-2001(w)
Marketplace facilitator
Yes — effective April 1, 2019
Streamlined (SST)
Not a member

What to watch in District of Columbia

  • The general rate is scheduled to rise from 6% to 7% on October 1, 2026 (DC Code § 47-2002).
  • SaaS and digital goods are taxable — the District taxes them at the general rate.
  • Category rates run well above the base: 10% on restaurant meals, higher rates on hotels and commercial parking.

Rates, thresholds, and taxability change mid-year — verify against the DC Office of Tax and Revenue before advising. In L3i, every determination is cited to the controlling authority.

Voluntary disclosure

The District of Columbia voluntary disclosure agreement.

Behind in the District of Columbia? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:

Lookback period
36 months (3 years)
Penalties
Waived
Interest
Still due
Anonymous approach
Permitted

Administered by the DC Office of Tax and Revenue · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.

Common questions

District of Columbia, in brief.

What is the economic nexus threshold in the District of Columbia?

$100,000 or 200 transactions, effective January 1, 2019. Once the threshold is crossed, remote sellers must register with the DC Office of Tax and Revenue and begin collecting.

What is the sales tax rate in the District of Columbia?

The state sales tax rate is 6%. Single district-wide rate; higher category rates for meals, hotels, and parking.

Do marketplace facilitators collect District of Columbia sales tax?

Yes — marketplace facilitators have been required to collect since April 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.

How does a remote seller register for District of Columbia sales tax?

Register with the DC Office of Tax and Revenue before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 or 200 transactions).

Does the District of Columbia offer a voluntary disclosure agreement (VDA)?

Yes — the DC Office of Tax and Revenue administers a voluntary disclosure program with a lookback of 36 months (3 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.

A page tells you the rule. The platform applies it — and remembers why.

L3i runs District of Columbia determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next District of Columbia question starts further ahead.

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