Bonus Tax Calculator — District of Columbia (2026)

Percentage method vs aggregate method

Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.

Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.

The District of Columbia layer on bonuses

District of Columbia taxes bonus income at the same progressive brackets as salary — up to 10.75%. A $10,000 bonus therefore carries roughly $1,075 of District of Columbia tax at the top rate, on top of federal and FICA.

District of Columbia has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.

Reducing the tax on a Washington bonus

Deferring part of the bonus into a 401(k) or HSA cuts federal and District of Columbia income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.

Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from government work or an equity event.

Local and payroll taxes District of Columbia adds on top

DC Paid Family Leave is employer-funded, so nothing extra comes out of your check. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.

District of Columbia has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.

Bonuses are wages, so every local layer that applies to your regular District of Columbia paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.

Working across a state line from District of Columbia

District of Columbia holds income-tax reciprocity agreements with Maryland and Virginia. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.

Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Washington resident spending part of the year at a client site in Virginia may owe a nonresident return there. Keep a day-count log if you split time between states.

The rest of your District of Columbia tax bill

District of Columbia charges a 6% state sales tax, homeowners pay an average effective property tax of 0.57% of market value, and the minimum wage in force during 2026 is $18.00 an hour.

6% general rate, with higher rates on restaurant meals and hotels.

Income tax is only one part of a state's take. District of Columbia recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. DC exempts Social Security but taxes pensions and IRA withdrawals at regular rates.

District of Columbia vs Virginia on the same salary

On a $75,000 salary, a single filer keeps about $58,164 a year in District of Columbia against roughly $58,026 in Virginia — a difference of $138, or $11 a month.

Effective combined rates are 22.4% in District of Columbia and 22.6% in Virginia. Set that gap against living costs: index 152 here versus 102 there, with property tax at 0.57% and 0.87% respectively.

District of Columbia income tax brackets 2026 (single filer)

Frequently Asked Questions

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