District of Columbia Capital Gains Tax (2026)
District of Columbia taxes capital gains as ordinary income on a graduated scale from 4% up to a top rate of 10.75%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and District of Columbia tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. District of Columbia adds state tax on top, at up to 10.75%.
How District of Columbia treats capital gains
District of Columbia taxes capital gains as ordinary income on a graduated scale from 4% up to a top rate of 10.75%. District of Columbia uses the federal standard deduction ($16,100 single / $32,200 married in 2026), which the estimate subtracts first.
2026 District of Columbia income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $10,000 | 4% |
| $10,000 – $40,000 | 6% |
| $40,000 – $60,000 | 6.5% |
| $60,000 – $250,000 | 8.5% |
| $250,000 – $500,000 | 9.25% |
| $500,000 – $1,000,000 | 9.75% |
| Over $1,000,000 | 10.75% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in District of Columbia with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). District of Columbia adds an estimated $1,803, for a combined $5,553, an effective 22.2% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does District of Columbia tax capital gains?
Yes. District of Columbia taxes capital gains as ordinary income. District of Columbia taxes capital gains as ordinary income on a graduated scale from 4% up to a top rate of 10.75%.
What will I pay on a long-term gain in District of Columbia?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,553: $3,750 federal plus $1,803 District of Columbia tax, an effective 22.2%.
Do I still owe federal capital gains tax in District of Columbia?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and District of Columbia tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Delaware · Florida
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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