How District of Columbia taxes retirement income

Some 2026 figures pending confirmation Tax year 2026 · research last updated October 2, 2026

District of Columbia doesn't tax Social Security benefits.
Exclusions and subtractions for retirement income (details below):
- DC and federal government survivor benefits: from age 62.
Rates for 2026: 4% to 10.75%, graduated.

At a glance

Income tax	Yes
Rates (2026)	4% to 10.75%, graduated
Starts from	Federal adjusted gross income (AGI)
Standard deduction	$15,000 single, $30,000 married filing jointly
Age 65 and older	$1,650 extra deduction per person
Social Security	Not taxed
Retirement income exclusions	1 (see below)
Roth conversions	Taxable
Capital gains	Taxed like other income
Local income tax	None

Tax rates

Brackets apply to District of Columbia taxable income. Other filing statuses are in the rules reference.

Rate	Single: taxable income	Married filing jointly: taxable income
4%	$0 to $10,000	$0 to $10,000
6%	$10,000 to $40,000	$10,000 to $40,000
6.5%	$40,000 to $60,000	$40,000 to $60,000
8.5%	$60,000 to $250,000	$60,000 to $250,000
9.25%	$250,000 to $500,000	$250,000 to $500,000
9.75%	$500,000 to $1,000,000	$500,000 to $1,000,000
10.75%	$1,000,000 and up	$1,000,000 and up

District of Columbia doesn't tax Social Security benefits.

Pensions, IRAs and 401(k)s

DC and federal government survivor benefits (D-40 line 12)

Age: 62+ · Applies to: government survivor annuity

An annuitant's survivor who is 62 or older as of December 31 subtracts the total DC or federal government survivor benefits received (not Social Security survivor benefits). DC has NO general pension, IRA, or 401(k) exclusion; pensions, annuities, IRA/401(k) distributions and Roth conversions are fully taxable.

Roth conversions

A Roth conversion counts as taxable income for District of Columbia. Whether a retirement income exclusion can cover part of it depends on the rules above.

Capital gains

Taxed like other income, at the rates above.

Credits and relief for older residents

Schedule H Homeowner and Renter Property Tax Credit (refundable): tax year 2025 maximum $1,425; federal AGI eligibility limit $66,000 for claimants under 70 and $90,000 for claimants 70 or older.
DC EITC: 100% of federal EITC for 2025; 85% for tax years 2026-2028 under the FY2027 Budget Support Act — rarely relevant to retirees.

More detail from our research notes

Taxable Social Security/Tier 1 railroad retirement is subtracted (D-40 line 10). The DC rate table has been unchanged since tax year 2022 and is not indexed. DC decoupled from the OBBBA higher federal standard deduction starting 2025 and set its own basic standard deduction ($15,000 single/MFS/dependent, $22,500 HOH, $30,000 joint/QSS/MFS-on-same-return) — for 2026-2029 D.C. Code 47-1801.04(3A) (added by the FY2027 Budget Support Act; in force via emergency D.C. Act 26-416 effective Aug. 13, 2026) keeps $15,000 / $22,500 / $30,000 increased annually by a cost-of-living adjustment with base year 2025, measured by the Washington-area CPI-U averaged over the 12 months ending July 31 (47-1801.04(11)); for 2026 the COLA is zero (preceding year = base year), so 2026 = $15,000 / $22,500 / $30,000. 2027 derived: Washington CPI-U (BLS CUURS35ASA0, bimonthly) Aug 2025-Jul 2026 average 329.531 / Aug 2024-Jul 2025 average 319.533 = 1.03129 -> $15,450 / $23,200 / $30,900 (scheduled.json). From 2030 the federal IRC 63(c) standard deduction applies again (47-1801.04(44)(vi)). Additional standard deduction applies if born before January 2 of the year 65 years earlier (2025: before Jan 2, 1961) or blind. Itemizing is allowed only if the taxpayer itemized federally; state/local income taxes are not deductible, real estate taxes are fully deductible (no $40k SALT cap), and itemized deductions are reduced by 5% of DC AGI over $200,000 ($100,000 MFS). No personal exemption (repeal made permanent). Interest on other states' municipal bonds became taxable starting 2025. History: the Council's 2025 decoupling temporary act was disapproved by Congress (Pub. L. 119-78, Feb 18, 2026); the DC AG opined the disapproval came after the review window; the FY2027 Budget Support Act (Council passed July 7, 2026; emergency version D.C. Act 26-416 effective Aug. 13, 2026 for 90 days; permanent version D.C. Act 26-418, DC Register Aug. 21, 2026, pending congressional review and not yet a D.C. Law as of 2026-10-02) re-codifies the 2025 treatment and sets 2026+ rules. DC also allows married couples to file separately on the same return (each spouse applies the full rate table to own income) — often beneficial when both have income.

Pending confirmation

These points were still being confirmed against District of Columbia's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.

4 items

2026 DC basic standard deduction $15,000 / $30,000 / $22,500 is the statutory reading of 47-1801.04(3A) and (11) (zero COLA for 2026 because the base year is 2025); OTR has published no 2026 amount that reflects the act (its 2026 D-40ES, Rev. 03/2026, shows the federal $16,100 / $32,200 / $24,150 and predates the act). Previous projection was 2025 x 1.0222 (15,300 / 30,650 / 22,950). Confirm on the 2026 D-40 booklet (Dec 2026-Jan 2027): https://otr.cfo.dc.gov/page/individual-income-tax-forms (2026 D-40 booklet)
Effective status: the emergency act (D.C. Act 26-416) runs 90 days from Aug. 13, 2026 (to about Nov. 11, 2026); the permanent act (D.C. Act 26-418) must survive congressional review (Congress disapproved DC's 2025 decoupling act, Pub. L. 119-78). If Congress disapproves, DC reverts to the federal standard deduction ($16,100 / $32,200 / $24,150 for 2026) and loses the 2026-2028 senior deduction coupling. Watch https://code.dccouncil.gov/us/dc/council/laws (new D.C. Law number for the FY2027 Budget Support Act).
Schedule H 2026 limits (2025: max credit $1,425; AGI limits $66,000 under 70 / $90,000 age 70+) are indexed and may change.
Survivor-benefit subtraction: confirm it is unlimited in amount (instructions say 'enter the total survivor benefits').

Sources

Every figure comes from these documents, mostly the state's own forms, instructions and statutes.

2025 D-40 booklet: rate table, DC standard deduction amounts, additional standard deduction, SS subtraction line 10, survivor benefits line 12, OBBBA decoupling, Schedule H limits; Itemized deductions (group-d, 2026-10-02): D-40 2025 booklet Calculation F p.19 and Line 18 p.20 (federal Sch A line 17 - line 7 + line 5b; 5% of DC AGI over $200,000 / $100,000 MFS, medical exempt); p.13 (itemize only if federal itemizes, then no standard…https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2025_D40_Book_082026_v1.pdf
D-40 booklet publication pagehttps://otr.cfo.dc.gov/publication/2025-d-40-booklet
OCFO Fiscal Impact Statement, FY2027 Budget Support Act of 2026, Subtitle VII(I) Tax Code Conformity: standard deduction COLA 2026-2029, senior/tips/overtime/car-loan deductions 2026-2028, EITC 85%https://app.cfo.dc.gov/services/fiscal_impact/pdf/spring09/FIS%20Fiscal%20Year%202027%20Budget%20Support%20Act%20of%202026.pdf
Congressional disapproval and AG opinion (secondary)https://www.afslaw.com/perspectives/alerts/district-columbias-tax-decoupling-dispute-congressional-disapproval-and-ongoing
D.C. Act 26-416, Fiscal Year 2027 Budget Support Emergency Act of 2026, Title VII Subtitle I (Tax Code Conformity and Clarification): 47-1801.04(3A) basic standard deduction, COLA base year 2025, senior deduction 2026+; effective Aug. 13, 2026https://code.dccouncil.gov/us/dc/council/acts/26-416
D.C. Code 47-1801.04 current text: (11) cost-of-living adjustment (Washington-area CPI-U, 12 months ending July 31)https://code.dccouncil.gov/us/dc/council/code/sections/47-1801.04
BLS CPI-U Washington-Arlington-Alexandria (CUURS35ASA0), 2024-Jul 2026, for the 2027 COLAhttps://api.bls.gov/publicAPI/v1/timeseries/data/CUURS35ASA0?startyear=2024&endyear=2026

Taxtirement's District of Columbia calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.

See your own years. Taxtirement applies these District of Columbia rules, and the federal and Medicare rules, to your household for every year of retirement, and shows the calculation behind each number. Coming November 2026 for iPhone, iPad and Mac.

This page summarizes District of Columbia's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.