Data Source and Methodology
- Washington, DC Office of Tax and Revenue — “Individual Income Tax Rates and Brackets,” current schedule. Official site: https://otr.cfo.dc.gov/page/dc-tax-rates. Accessed: 2025-09-14.
- IRS — Publication 501 (2024), Standard Deduction and Filing Information: https://www.irs.gov/publications/p501.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
DC taxable income:
Let income be I, deductions D, credits C (credits applied after tax). Then:
Taxable income: \( TI = \max(0,\ I - D) \)
Progressive tax (piecewise by brackets):
With brackets \( (b_k, r_k) \) where \( b_k \) is the upper bound and \( r_k \) the rate for bracket k, and \( b_0 = 0 \):
\( T(TI) = \sum_{k=1}^{n} \big[ \max\big(0, \min(TI,\ b_k) - b_{k-1}\big) \times r_k \big] \)
Net tax after credits: \( T_{\text{net}} = \max(0,\ T(TI) - C) \)
Effective rate: \( \text{ER} = \frac{T_{\text{net}}}{I} \quad (\text{if } I>0) \)
DC brackets (current schedule):
4% up to $10,000;
6% over $10,000 to $40,000;
6.5% over $40,000 to $60,000;
8.5% over $60,000 to $250,000;
9.25% over $250,000 to $500,000;
9.75% over $500,000 to $1,000,000;
10.75% over $1,000,000.
Glossary of Variables
- Annual gross income (I): Total income before DC taxes and deductions.
- Filing status: Your federal filing status; used to set the standard deduction.
- Standard deduction (D): Default deduction amount based on filing status (2024 amounts). Replaced if you select Itemized.
- Itemized deductions (D): Your total DC-allowable deductions (if larger than standard, typically more beneficial).
- Credits (C): Dollar-for-dollar reductions of tax after it’s calculated (e.g., certain DC credits).
- Taxable income (TI): Income after deductions: max(0, I − D).
- Tax owed (T_net): DC tax after credits.
- Marginal rate: Rate that applies to your last dollar of taxable income.
- Effective rate (ER): T_net divided by I.
- After‑tax income: I − T_net.
Worked Example
How It Works: A Step‑by‑Step Example
Suppose income I = $85,000, Filing Status = Single (Standard Deduction for 2024 = $14,600), Credits C = $0.
- Taxable income: \( TI = \max(0, 85{,}000 - 14{,}600) = 70{,}400 \).
- Apply brackets:
- 4% of first $10,000 = $400
- 6% of next $30,000 (10k–40k) = $1,800
- 6.5% of next $20,000 (40k–60k) = $1,300
- 8.5% of remaining $10,400 (60k–70.4k) = $884
- Credits: \( T_{\text{net}} = \max(0, 4384 - 0) = 4,384 \).
- Effective rate: \( ER = 4{,}384 / 85{,}000 \approx 5.16\% \).
- After‑tax income: $85,000 − $4,384 = $80,616.
Numbers rounded to nearest dollar where appropriate.
Frequently Asked Questions (FAQ)
Does DC have different brackets by filing status?
No. DC’s marginal brackets are the same for all statuses. Filing status matters for the standard deduction amount.
Which standard deduction amounts are used?
2024 federal standard deduction amounts: Single/MFS $14,600; HOH $21,900; MFJ/QS $29,200. You can override by selecting Itemized.
Are local credits included?
You can enter a total for DC credits as a single number. This tool does not determine eligibility for specific credits.
Can I use this for paychecks?
Yes. Choose a pay frequency to view an approximate per‑paycheck after‑tax amount based on annualized figures.
Is this tax advice?
No. It’s an educational estimate. Consult a licensed tax professional for advice on your situation.
Where can I verify the DC tax rates?
See the DC Office of Tax and Revenue: official tax rate schedules.