DC Washington, DC State sales tax rates
Statewide sales tax rate
Economic sales threshold
Do you need to collect sales tax in Washington, DC?
If you are connected in Washington, DC, you need to collect sales tax in Washington, DC. When it comes to connection, there are two ways to connect the seller with a state: material or economic. Physical connection means that there is enough physical presence or activity in a state to pay sales tax in that state. Economic linkage means exceeding the total income economic threshold of a state or the number of transactions in that state.
Do you have a physical relationship in Washington, DC?
If the following conditions are met, Washington, DC considers the seller to be physically connected:
Own offices, distribution locations, sales or sample rooms or locations, warehouses or storage locations, or other business premises
There are representatives, agents, salesmen, lobbyists or lawyers to carry out retail sales or accept orders for such sales.
Do you have economic ties in Washington, DC?
From January 1, 2019, remote sellers with total sales of more than 100000 US dollars or more than 200 transactions in Washington, DC need to register, collect sales tax on the sales shipped to Washington, DC, and pay the sales tax to the state.
Do you have to pay tax on what you sell?
Services in Washington, D.C. are generally not taxed, with some exceptions. However, if the services you provide include creating or manufacturing products, you may need to deal with the sales tax of the products.
Tangible products are taxed in Washington, D.C., with a few exceptions.
Collect business tax
Fortunately, collecting sales tax in Washington, D.C. is quite simple. There is only one sales tax rate - 6%.
Therefore, if you have a sales tax relationship in Washington, D.C. and sell it to buyers in Washington, D.C., you will charge them 6% sales tax.
Should you impose sales tax on freight charges in Washington, DC?
If you have contact in Washington, D.C. and want to ship the goods to Washington, D.C., the freight is subject to tax.
When will the tax be refunded?
When you submit and pay sales tax in Washington, D.C., it depends on two things: the submission frequency you specify and the deadline of your state.
How often will you file your sales tax return in Washington, DC?
When you register a sales tax license, the states will specify a frequency for you to apply. In most states, the frequency of your sales tax submission depends on the amount of sales tax you collect from buyers in that state.
In Washington, D.C., you need to declare and pay sales tax monthly, quarterly or annually.
The sales tax return in Washington, D.C. always expires on the 20th of the next month after the reporting period. If the deadline for submission is weekend or holiday, the sales tax usually expires on the next working day.