The Washington, D.C. sales tax rate is 6% on most retail purchases through September 30, 2026, then rises to 7% on October 1, 2026. Certain categories carry their own rates: 9% on restaurant meals, 15.95% on hotel stays, 18% on commercial parking, and 10.25% on alcohol bought at a liquor store. Groceries, medicine, and residential utilities are exempt.
The General Rate and the 2026 Increase
Most physical goods sold at retail in the District — clothing, electronics, furniture, household supplies — are taxed at the general rate of 6% under D.C. Code 47-2002.1D.C. Law Library. District of Columbia Code 47-2002 – Imposition of Tax
That 6% rate expires on September 30, 2026. Starting October 1, 2026, the general rate becomes 7%.2Office of Tax and Revenue. Notice of Oct. 1, 2025 Tax Changes The increase was pushed back by the Sales Tax Increase Delay Amendment Act of 2025. If you’re planning a large purchase, buying before October 1, 2026 saves you a percentage point.
Restaurants, Alcohol, and Soft Drinks
Prepared food sold for immediate consumption and alcohol consumed on the premises are taxed at 9%. This covers restaurants, bars, food trucks, and caterers alike.1D.C. Law Library. District of Columbia Code 47-2002 – Imposition of Tax
Alcohol sold for off-premises consumption — beer, wine, or spirits from a liquor store — is taxed at 10.25%, higher than the rate on drinks poured at a bar.1D.C. Law Library. District of Columbia Code 47-2002 – Imposition of Tax
Soft drinks sit at 8%.1D.C. Law Library. District of Columbia Code 47-2002 – Imposition of Tax The District defines a soft drink broadly: any sweetened, non-alcoholic beverage containing less than 100% juice or less than 50% milk or milk substitute, plus sweetened coffee and tea products. A bottled iced tea from the grocery store falls in this tier, not the general 6%.
Hotels, Parking, and Rental Cars
Short-term lodging carries a statutory base rate of 10.20% under D.C. Code 47-2002, but a temporary surcharge brings the effective rate to 15.95%. The District has extended that higher rate through September 30, 2027.3Office of Tax and Revenue. Notice of Oct. 1, 2025 Tax Changes If you’re booking a D.C. hotel in 2026, 15.95% is what you’ll actually pay.
Commercial parking is taxed at 18% of gross receipts. Parking lots owned or operated by the Washington Metropolitan Area Transit Authority adjacent to a Metro station are exempt.1D.C. Law Library. District of Columbia Code 47-2002 – Imposition of Tax
Rental cars and utility trailers are taxed at 9.25%.1D.C. Law Library. District of Columbia Code 47-2002 – Imposition of Tax Insurance surcharges and federal fees added by the rental company come on top.
What’s Exempt
Several everyday necessities are fully exempt under D.C. Code 47-2005.
Groceries intended for home preparation carry no tax. The Office of Tax and Revenue draws the line at form and packaging: food sold in the same form and packaging commonly found in grocery stores qualifies, while prepared food sold for immediate consumption does not.4Office of Tax and Revenue. OTR Guidance for Sales Tax Concerning Food A loaf of bread from the bakery aisle is exempt; a sandwich from the hot counter is not.
Medicines, pharmaceuticals, and drugs are exempt whether prescription or over the counter.5D.C. Law Library. District of Columbia Code 47-2005 – Exemptions
Residential utility services — gas, electricity, and heating oil delivered to your home — are also tax-free. The exemption is residential only; commercial utility service is taxed.5D.C. Law Library. District of Columbia Code 47-2005 – Exemptions
Feminine hygiene products and diapers have been exempt since 2017 under D.C. Law 21-201.6D.C. Law Library. D.C. Law 21-201 – Feminine Hygiene and Diaper Sales Tax Exemption The diaper exemption covers absorbent incontinence products for any age, not just infant diapers.
Quick Reference for 2026
- General retail through September 30, 2026: 6%
- General retail from October 1, 2026: 7%
- Soft drinks: 8%
- Restaurant meals and on-premises alcohol: 9%
- Rental cars and utility trailers: 9.25%
- Off-premises alcohol from liquor stores: 10.25%
- Hotels and short-term lodging (through September 30, 2027): 15.95%
- Commercial parking: 18%
- Groceries, medicine, residential utilities, feminine hygiene products, diapers: exempt
Buying Outside the District or Online
D.C. charges a use tax at the same rate as its sales tax on items you buy outside the District and bring in for personal use or storage. Buy furniture in Virginia and use it in D.C., and you owe the District the equivalent tax.7Office of the Chief Financial Officer. Tax Rates and Revenues, Sales and Use Taxes, Alcoholic Beverage Taxes and Tobacco Taxes If untaxed out-of-district purchases reach $400 or more in a year, file Form FR-329 through MyTax.DC.gov by the individual income tax deadline. Sales tax already paid to another jurisdiction can typically be claimed as a credit.
For online purchases, remote sellers without a D.C. physical presence must collect D.C. sales tax if, in the current or prior calendar year, they had more than $100,000 in gross receipts from sales into the District or more than 200 separate transactions delivered into the District. Either threshold alone triggers the obligation.8Office of Tax and Revenue. Sales and Use Tax FAQs Marketplace facilitators such as Amazon and Etsy generally handle collection for third-party sellers on their platforms.