Upcoming sales tax changes in the District of Columbia

Several notable changes related to sales and use tax will take effect in the District of Columbia on October 1, 2018.

For everyone

The general sales and use tax rate is increasing from 5.75% to 6%. This affects most sales in Washington, D.C., including charges for tickets to “legitimate theaters and entertainment venues.” (The rate for charges for tickets to illegitimate theaters and entertainment venues has not been addressed.)

For fans

Washington, D.C., has a special sales tax rate applicable to charges for any tickets to baseball games and baseball-related events at Nationals Park, as well as baseball-related tangible personal property sold at Nationals Park. On October 1, 2018, the rate jumps from 10% to 10.25%.

The same rate increase applies to the tax on charges for events at the Capital One Arena, as well as tangible personal property sold at the arena.

For movers and travelers

There will be a small rate increase in the hotel/transient accommodations tax, from 14.8% to 14.95%. The lower rate applies to bookings made and fully pre-paid before October 1, while rooms booked but not fully pre-paid prior to October 1 will be taxed at the higher rate.

The tax rate on charges for the leasing or rental of rental vehicles and utility trailers jumps from 10% to 10.25%.

For smokers

The tax on a 20-pack of cigarettes will jump significantly, from $2.94 to $4.94.

Rates for other tobacco products, including vapor products, will increase from 60% to 96% of wholesale sales.

For the thirsty

Sales of alcohol purchased for consumption off-premises will be taxed at 10.25% as of October 1, an increase of 0.25%.

For females

The District joins a growing number of states in exempting feminine hygiene products such as tampons and pads. As of October 1, they will be exempt from sales and use tax in Washington, D.C.  

Additional information is available at the Office of Tax and Revenue.

Learn more about sales and use tax in the District of Columbia.