As the 2025 filing season is quickly approaching, we would like to remind you of important tax changes that will take effect.
DC Tax Brackets 2025
The DC tax brackets have not changed since the 2022 tax year. Since tax year 2022, the DC tax rates are as follows:
| If the taxable income is: | The tax is: |
| Not over $10,000 | 4% of the taxable income. |
| Over $10,000 but not over $40,000 | $400, plus 6% of the excess over $10,000. |
| Over $40,000 but not over $60,000 | $2,200, plus 6.5% of the excess over $40,000. |
| Over $60,000 but not over $250,000 | $3,500, plus 8.5% of the excess over $60,000. |
| Over $250,000 but not over $500,000 | $19,650, plus 9.25% of the excess over $250,000. |
| Over $500,000 but not over $1,000,000 | $42,775, plus 9.75% of the excess above $500,000. |
| Over $1,000,000 | $91,525, plus 10.75% of the excess above $1,000,000. |
Standard Deduction
The standard deductions are increasing based on the federal law; beginning January 1, 2024, from:
- $15,000 for single and married/registered domestic partner filers filing separately;
- $22,500 for head of household filers;
- $30,000 for married/registered partners filing jointly and qualifying widow(er) with dependent child(ren) filers;
Additional Standard Deduction: If born before January 2, 1960, or are blind, an additional standard deduction of $1,600 ($2,000 if single or head of household) is allowed.
DC Earned Income Tax Credit
- For the tax year 2025, the amount of the DC EITC allowed is increased to 100% of the federal credit.
- The investment income test is increased from $11,600 to $11,950.
- For EITC Without Qualifying Children the maximum credit amount has increased from $632 to $649.
Schedule HSR-DC Health Care Shared Responsibility
The filing thresholds have changed. Please see the updated filing thresholds below.
All district residents must either:
- Have qualifying health care coverage for yourself, your spouse/registered domestic partner (if filing jointly or separately on the same return) and anyone you or your married/registered domestic partner claim (or can claim) as a dependent;
- Have a coverage exemption for yourself, spouse/registered domestic partner (if jointly or separately filing on same return) and anyone who can be claimed as a dependent on you or your spouse/registered domestic partner return; or
- Make a health care shared responsibility payment.
Schedule H - Homeowner and Renter Property Tax Credit
The DC real property tax credit is based on your DC real property tax bill for tax year 2025. Do not include special assessments, interest, penalties, and/or services charges.
- Maximum property tax credit has increased from $1,375 to $1,425.
- Federal AGI eligibility threshold for taxpayers under 70 has increased to $66,000.
- Federal AGI eligibility threshold for taxpayers age 70 and older has increased to $90,000.
Schedule ELC - Keep Child Care Affordable Tax Credit
The District taxable income thresholds for the 2024 tax year have changed to:
a. Single and Head of Household: $174,300;
b. Married/Registered Domestic Partners Filing Jointly: $174,300;
c. Married/Registered Domestic Partners Filing Separately on the same return: $174,300;
d. Married/Registered Domestic Partners Filing Separately: $87,100
- The maximum credit amount has increased to $1,200 per eligible child.