District of Columbia payroll taxes
Every tax withheld from a District of Columbia paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: news.bloombergtax.com, taxfoundation.org, onpay.com, legal500.com.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| District of Columbia SUTA | — | 2.9% (new) | $9,000 |
| Universal Paid Leave | — | 0.75% | No limit |
| District of Columbia income tax | 4%–10.75% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
District of Columbia charges new employers 2.9% on the first $9,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 2.1% to 7.6%. New employer rate is 2.7% UI + 0.2% admin assessment. The UI table 6 range is 1.9%-7.4%. Wage base fixed by statute.
Administrative assessment 0.2%, included in the rates. Universal Paid Leave employer tax is 0.75% of all wages (separate program).
Register and file with the District of Columbia unemployment tax agency.
Paid leave and disability programs
- Universal Paid Leave: no employee share, employers pay 0.75%. Employer-only tax of 0.75% of total covered wages (no cap); not withheld from employees. Oct 1, 2026 changes reduced benefit weeks/max benefit but no rate change was adopted as of retrieval.
Income tax withholding
District of Columbia has a graduated income tax with 7 brackets, from 4% up to 10.75% on taxable income over $1,000,000 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in District of Columbia?
- Social Security, Medicare, federal unemployment (FUTA) and District of Columbia unemployment insurance (SUTA), plus Universal Paid Leave.
- What is the District of Columbia SUTA wage base for 2026?
- $9,000 per employee.
- Does District of Columbia require state income tax withholding?
- Yes. Employers withhold District of Columbia income tax based on the employee's state withholding certificate or federal W-4.