Capital Gains Tax for District of Columbia (2026)
District of Columbia (DC) Key Facts
State Capital Gains Rate
10.75%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in District of Columbia
This calculator estimates your combined federal and District of Columbia capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
District of Columbia Overview
District of Columbia taxes capital gains as ordinary income at up to 10.75%. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How District of Columbia Compares
District of Columbia's capital gains rate of 10.75% compares to Maryland at 5.75% and Virginia at 5.75%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Maryland | 5.75% | Maryland has a capital gains rate of 5.75%. |
| Virginia | 5.75% | Virginia has a capital gains rate of 5.75%. |
District of Columbia's capital gains rate of 10.75% compares to a national average of approximately 5.04%. This is above the national average.
Tips for District of Columbia Residents
- 1District of Columbia taxes capital gains as ordinary income at up to 10.75%.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. District of Columbia's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and District of Columbia state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 34.5% for high earners.