TAX & LICENSE / STATE TAX SYSTEMS

DISTRICT OF COLUMBIA

Personal Income Tax
Residents are required to file personal income tax returns by April 15. “Resident” refers to someone who has maintained a permanent home in the District at any time during the calendar year or who has maintained a place of abode for 183 days or more during the year. Exemptions include elected U.S. Government officials and staff members. Income taxes are calculated on a graduate scale where the tax rate increases with the taxable income level.

Sales & Use Tax
The District of Columbia imposes a 5.75 percent sales and use tax on the retail sales of tangible personal property, with the exception of a Sales Tax Holiday. Buyers are able to purchase items up to $100 in value without sales tax on a designated day just prior to the start of the school year.

However, Washington, D.C., actually levies a sales tax with five different rates. This rate structure is utilized, in part, to take advantage of the district’s special status as a tourist center and to increase the contribution of nonresidents working in the city. The current sales tax rates are:
— 5.75  percent for tangible personal property.
— 10 percent for alcohol sold for off-premises consumption.
— 10 percent for restaurant meals, take-out food, rental cars and telephone calling cards.
— 18 percent for commercial parking.
— 14.5 percent for hotel and motel rooms.
Items exempt from the District of Columbia sales tax include groceries, prescription and nonprescription medicines, and residential utility services.

Property Taxes
Taxable real property is assessed annually and tax is imposed annually, although bills are mailed out twice a year to split the payment. You may be eligible for real property tax relief or credits that will reduce the tax. The tax rate is the amount of tax on each $100 of the assessed value of the property. Rates are established by the Council of the District of Columbia and may change from year to year.

General Tax Information
For more information on personal income, sales and use, or other taxes in the District of Columbia, contact:

Office of Tax and Revenue
Customer Service Center
1101 4th Street, SW, Suite 270 W
Washington, DC 202-727-4829
https://otr.cfo.dc.gov

MARYLAND

Personal Income Tax
Maryland imposes a graduated income tax based on your income, your filing status, and applicable credits and exemptions. State law allows the City of Baltimore and all 23 Maryland counties to levy additional local income taxes at rates between 2 percent and 5.75 percent.

Sales & Use Tax
Maryland imposes a 6 percent sales and use tax on the retail purchase of tangible property. Sales taxes are collected on the retail level, although use taxes must be paid by the individual who has purchased an item outside of Maryland without paying taxes (catalog and Internet orders are good examples) and is using that item within the state.

Property Tax
Real property in Maryland is assessed at approximately 40 percent of fair market value, and taxes combine a state rate with additional local government rates. The Maryland State Department of Assessments and Taxation is responsible for appraising all taxable property at market value, certifying property values to local governments, and offering programs of property tax relief. Your local assessment office is another source of information. For more information on property taxes, contact:

Assessments & Taxation
Baltimore, MD 410-767-1184
https://dat.maryland.gov

General Tax Information
For answers to specific questions or details on these and other taxes included in the Maryland tax structure, contact the Comptroller of Maryland or the appropriate tax information department:

Comptroller of Maryland
Taxpayer Service Section
Annapolis, MD 800-MD-TAXES
https://www.marylandtaxes.gov

Frequently Requested Numbers
Refunds 410-260-7701
Income Tax 410-260-7980
Sales/Use Tax 410-767-1300

VIRGINIA

Personal Income Tax
The Commonwealth of Virginia imposes a graduated income tax that varies with the resident’s filing status, deductions, credits, and level of taxable income. It ranges from 2 to 5.75%. Taxable income is generally defined around the same guidelines used for federal income taxes.

Sales & Use Tax
The general sales and use tax rate in the Commonwealth of Virginia is 4.3 percent. There is an additional 1 percent local tax, for a total of 5.3 percent combined sales tax on most Virginia purchases. The sales of some food items may be subject to tax at a reduced rate. Nonprescription drugs and proprietary medicines are exempt.

Property Taxes
Under Virginia law, real property is taxed at 100 percent of fair market value, and the rates are set by jurisdiction. The state does not levy a real property tax. Municipalities set a town rate that is added to the county base rate for the total rate. Cities set a rate that is paid in lieu of a county tax. Modest district levies are imposed in addition to the basic county levy. Contact your local assessor for complete details on your specific property.

General Tax Information
For more information on personal income tax, sales and use tax, of any other Virginia taxes, contact:

Virginia Department of Taxation
Information 804-367-8031
Forms 804- 440-2541
https://www.tax.virginia.gov/