Washington, DC sales tax on invoices (2026 guide)

Washington, DC has a single 6% general sales tax rate. There are no county or city taxes on top, so the rate is the same anywhere in the District. A scheduled increase to 7% has been postponed: the Office of Tax and Revenue (OTR) now says the rate stays at 6.0% through September 30, 2027 and becomes 7.0% on October 1, 2027.

Where DC gets tricky is services. The District taxes several services that many states don't — including landscaping, building cleaning and data processing. This guide covers the rates, which services are taxable, registration and what your DC invoices should show.

Washington, DC sales tax rates

DC's rates have changed several times in recent years, and OTR posts notices before each change. Check the current rate before you set up recurring invoices that run past a change date.

Which services are taxable in DC?

DC taxes tangible personal property, digital goods and a list of services. OTR says its list isn't exhaustive, but it includes:

• Real property maintenance — keeping land or buildings clean, orderly and functional, such as floor, wall, ceiling and window cleaning, pest control, pool servicing, exterior building cleaning, trash removal, chimney and duct cleaning, lighting maintenance and ground maintenance. It doesn't include painting, wallpapering or work done as part of construction or a major repair.
• Landscaping — arranging or modifying land and plantings, retaining walls, ponds and sprinkler systems, plus the consultation, design and planning work of landscape designers and landscape architects.
• Data processing — a broad definition that covers data entry and storage, word processing, payroll and business accounting, preparing W-2s and payroll checks, and system or application programming or software.
• Information services — such as newsletters, mailing lists, real estate listings, credit and financial reports, and surveys. Information compiled for one client that is proprietary to that client and can't be sold to others is excluded.
• Car washes (except coin-operated self-service), security guard and alarm monitoring services, and health club and tanning services.

If you're a bookkeeper, payroll provider or developer, read the data processing definition carefully — DC's version reaches further than many states'.

Registering to collect DC sales tax

If you make taxable sales or provide taxable services in the District, register with OTR using Form FR-500, Combined Business Tax Registration Application, online through MyTax.DC.gov. Returns and payments are due by the 20th day of the month after the end of your monthly, quarterly or annual period. OTR places businesses whose sales tax liability is less than $200 per period on an annual filing schedule.

Remote sellers

A remote seller must register and collect DC sales tax if, in the previous or current calendar year, it has more than $100,000 in gross receipts from retail sales delivered into the District or more than 200 separate retail sales delivered there. Remote sellers register using Form FR-500 and indicate that they're a remote seller.

What a DC sales tax invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and the invoice date,
• a description and price for each item or service,
• sales tax as a separate line, with the rate you applied, and
• the total due.

If you mix taxable and non-taxable work — say, data processing and general consulting — keep them on separate lines so the client can see exactly what was taxed. In Invoice Native, tick Tax only on the taxable lines.

Resale and exemption certificates

A business buying goods or services to resell gives you Form OTR-368, Certificate of Resale. The certificate:

• isn't valid unless it shows the buyer's DC Sales and Use Tax Account ID Number,
• must be signed by the owner or an authorized officer and dated, and
• must be kept on file by you, the seller, to support the exemption if you're audited.

Buyers inside or outside DC must file Form FR-500 with OTR to be eligible to use the certificate. For customers such as qualifying nonprofits and government agencies, get and keep their exemption documentation before you leave tax off. See how to invoice a tax-exempt customer.

A worked example

Say you're a landscaping company and a client in Capitol Hill hires you to redesign their garden. You invoice:

• $500 for the landscape design plan, and
• $2,400 for planting and installing a new bed.

Both lines are landscaping under DC's definition — the design work included. Tax is ($500 + $2,400) × 6% = $2,900 × 6% = $174.00, and the invoice total is $3,074.00.

Selling to customers in other states

If you ship goods or deliver taxable services to customers outside DC, the rules of the customer's state may apply instead. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. With Maryland and Virginia next door, check the rules of each state you regularly sell into and use that state's rate on those invoices. Our sales tax calculator can help with the math.

Common mistakes on DC invoices

• Assuming services aren't taxed. Landscaping, building cleaning, data processing and more are taxable in DC.
• Leaving landscape design fees untaxed — DC's definition of landscaping includes design and consultation.
• Using 7% too early. The general rate stays 6.0% until October 1, 2027.
• Accepting an OTR-368 without an Account ID Number, signature or date.
• Applying the general rate to restaurant meals or prepared food, which are taxed at 10%.

Quick checklist for DC invoices

• ✅ Registered with OTR (Form FR-500) before your first taxable sale
• ✅ Checked whether your services are taxable in DC
• ✅ 6.0% general rate (7.0% from October 1, 2027)
• ✅ Taxable and non-taxable lines separated
• ✅ Completed OTR-368 certificates on file