What it costs to live and work in District of Columbia: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| District of Columbia | Source | |
|---|---|---|
| Minimum wage | $18.40 an hour | DC Department of Employment Services: 2026 Minimum Wage Increase Notice |
| State income tax | 4 % to 10.75 % | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) |
| State sales tax | 6 % | Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 |
| Median gross rent | $1,931 a month (2024) | US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) |
The minimum wage is $18.40 an hour since July 1, 2026, for all employers, adjusted every July 1 for inflation.
DC taxes income at 4 % to 10.75 %; the top rate applies above $1 million.
The sales tax is 6 %, with no separate local rate.
What income does rent in District of Columbia take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,931 a month, that means a household income of about $77,200 a year before tax.
Good to know
- DC's minimum wage is one of the highest in the country and rises each July 1 with inflation.
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) (2025-09)
- DC Department of Employment Services: 2026 Minimum Wage Increase Notice (2026)