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DC

District of Columbia Nanny Tax Guide

Washington D.C. has the highest minimum wage in the nation and a robust paid family leave program that is funded entirely by employers. The progressive income tax reaches up to 10.75% for high earners.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$17.50/hour

SUTA Rate Range

1.0% - 7.0%

Key Things to Know

  • Highest minimum wage in the country ($17.50/hour)
  • Paid Family Leave program (employer-funded)
  • Progressive income tax (4% - 10.75%)
  • No additional local taxes

District of Columbia Employer Requirements

District Income Tax

D.C. uses progressive tax brackets ranging from 4% to 10.75%. Higher income levels face rates of 8.5% to 10.75%.

Paid Family Leave

D.C.'s Paid Family Leave program is employer-funded. Employers pay 0.62% of wages into the fund. Employees receive up to 12 weeks of paid parental leave and 12 weeks for family care.

Unemployment Insurance

Employers pay UI tax on the first $9,000 of wages. New employer rate is 2.7%, with rates ranging from 1.0% to 7.0% based on experience.

What will it cost?

Wondering what you'll actually owe as a District of Columbia employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: District of Columbia tax agency, IRS Publication 926

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