District of Columbia variant. This is a District of Columbia-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In District of Columbia, that means a top rate of 10.75% on gains.
Capital gains tax in District of Columbia
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. District of Columbia then taxes the same gains as ordinary income at up to 10.75%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in District of Columbia
The District of Columbia imposes a graduated income tax with a top marginal rate near 10.75%.
The District has a low effective property tax rate near 0.57%, but median home values are among the highest in the country around $670,000.
The District of Columbia's economy is dominated by the federal government, professional services, and the many associations and contractors that support it.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus District of Columbia state tax up to 10.75% = $5,375, for a combined bill near $12,875.
Quick reference
- State income tax: 4-10.75% across 7 brackets
- State sales tax: 6% (plus 0.00% avg local)
- Median home value: $670,000
- Median household income: $101,027
- Effective property tax rate: 0.57%
- Avg auto insurance: $1,818/yr
Frequently Asked Questions
Does District of Columbia tax capital gains?
Yes - District of Columbia taxes capital gains as ordinary income at up to 10.75%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.