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Illinoiscorporate tax inDistrict of Columbia
High — top rate 8% or higher

District of Columbia

Top Rate
8.25%
Rate Structure
Flat
Franchise Tax
Yes
Gross Receipts Tax
No
S-Corp Recognized
No

Corporate Income Tax Rate at a Glance

District of Columbia's top corporate income tax rate is 8.25%, applied as a flat rate. This places District of Columbia in the "High (8% or higher)" tier among U.S. states.

Rate Structure (Flat vs. Graduated)

8.25% flat franchise tax on net income. Minimum tax: $250 if DC gross receipts under $1M; $1,000 if over $1M.

Franchise Tax / Annual Privilege Tax

DC's corporate income tax is technically called a 'franchise tax.' Unincorporated businesses (including LLCs) with gross income over $12,000 are subject to a separate 8.25% Unincorporated Business Franchise Tax.

S-Corp & Pass-Through Treatment

DC does NOT recognize the federal S-corp election. S-corporations are taxed as C-corporations at 8.25%. LLCs and partnerships with gross income over $12,000 pay the 8.25% Unincorporated Business Franchise Tax at the entity level.

Official State Revenue Department

For current corporate tax rules in District of Columbia, consult the state's official source at https://otr.cfo.dc.gov/. Rates and rules change annually — verify with a qualified tax professional before taking any action.

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Related guides

District of Columbia Department of Revenue: https://otr.cfo.dc.gov/
Law last updated: 2025Row last reviewed: May 7, 2026

Corporate income tax rates change frequently as states enact reform packages and phase-down schedules. Always verify current rates with the state's department of revenue and your tax advisor before making business decisions. This information is for educational purposes only and is not tax or legal advice.