The short version
- Social Security taxed?
- No
- Income tax
- Brackets 4%–10.75%
- Property tax on a $300,000 home
- ≈ $1,680 / yr ($140 / mo)
- Everyday cost index (U.S. = 100)
- 139
- January / July high
- 43°F / 89°F
- Sales tax (state + local avg)
- 6.00%
Retiring in District of Columbia
World-class healthcare, culture, and transit with modest property taxes. Watch out: big-city prices and income taxes up to 10.75%.
How District of Columbia taxes your retirement income
Social Security: not taxed at all.
Pensions: Pensions taxed as regular income.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals taxed as regular income.
The setup: Brackets 4%–10.75%.
Property tax & senior breaks
The average effective property tax rate is about 0.56% — roughly $1,680 a year ($140 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Homeowners 65+ with modest income can cut their property tax bill by 50%.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 39% above the U.S. average. The combined state and average local sales tax is 6.00%.
Weather
January days top out around 43°F and July days around 89°F, with roughly 205 sunny days a year. Watch out for: Humid summers, occasional snow and nor'easters.
Healthcare
Top-tier hospitals and specialists throughout the city.
Estate & inheritance taxes
District of Columbia has an estate tax. Estate tax above roughly a $5 million exemption