Washington DC sales tax for online sellers: nexus, permit and filing

What is the Washington DC sales tax rate?

The general rate is 7% for periods beginning on or after October 1, 2026. The increase was passed in stages, and sources differ on whether the rate just before was 6% or 6.5%, so use 7% for sales from October 1, 2026 and check the Office of Tax and Revenue's notices for earlier periods. There are no local taxes within the District. Higher rates apply to categories such as restaurant meals, alcohol, hotels and parking. DC taxes digital goods and a number of services as well as physical goods; groceries are exempt.

When does an online seller have to collect in Washington DC?

You must collect if you have a physical presence in the District, such as staff, an office or inventory, or if in the previous or current calendar year your gross receipts from sales into the District were more than $100,000 or you made 200 or more separate retail sales there. Either test is enough.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Washington DC requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online through MyTax.DC.gov, the Office of Tax and Revenue's portal, for a sales and use tax account. A remote seller registers for tax purposes only; a business with a physical presence in the District also needs a business license. See how to form an LLC in Washington DC.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Washington DC against its threshold.

2. Register before collecting

   With the Washington DC tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Washington DC assigns, including zero returns where required.

How are returns filed?

Returns are filed through MyTax.DC.gov and are due by the 20th of the month after the period. The Office of Tax and Revenue assigns monthly, quarterly or annual filing based on the tax you collect. A return is required for every period, including periods with no sales.

See how to file a sales tax return.

What should sellers do about the October 2026 rate change?

Charge 7% on taxable sales delivered in the District from October 1, 2026. Stores that take rates from an up-to-date tax service will have changed automatically; a rate typed in by hand needs changing. If you charged the old rate on sales after that date, you still owe the full 7% and the shortfall comes out of your margin, so check your first October orders. Marketplaces apply the new rate on the sales they handle.

Why does the 200-sale test matter?

Because it can be met at a low sales value. A seller of $18 items reaches 200 sales into the District after $3,600 of receipts, far below $100,000, and must then register and collect. Many states have dropped their transaction tests, but the District has kept its own, so count orders as well as dollars.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.