Washington, D.C. retirement taxes at a glance (2026)
| State income tax | Graduated, top rate 10.75%DC has seven brackets from 4% to 10.75%; the top rate applies above $1 million. |
|---|---|
| Social Security | Not taxedDC excludes Social Security and tier 1 Railroad Retirement benefits from income. |
| Pensions | TaxedPrivate pensions are taxed as regular income. |
| 401(k) and IRA withdrawals | TaxedIRA and 401(k) withdrawals are taxed as regular income. |
| Government pensions | TaxedDC and federal government pensions are taxed; the $3,000 exclusion for age 62+ applied only to tax years before 2015. |
| Military retirement pay | TaxedMilitary retired pay is taxed; the old $3,000 exclusion for age 62+ ended after tax year 2014. |
| Estate tax | Yes, above $4,988,400DC taxes estates above $4,988,400 for deaths in 2026. |
| Inheritance tax | No |
Recent changes and good to know
- Some secondary guides still mention a government pension deduction; DC Code 47-1803.02 limits it to tax years before 2015.
- A 2025 conformity act (effective 2026-02-12) amended 47-1803.02; details were not reviewed.
How to lower your retirement taxes in Washington, D.C.
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Washington, D.C. too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Washington, D.C. tax retirement income?
Yes: DC exempts Social Security but taxes pensions, military pay and IRA/401(k) withdrawals in full, at rates up to 10.75%.
Does Washington, D.C. tax Social Security?
DC excludes Social Security and tier 1 Railroad Retirement benefits from income.
Does Washington, D.C. tax pensions?
Private pensions are taxed as regular income.
Does Washington, D.C. tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals are taxed as regular income.
Does Washington, D.C. tax military retirement pay?
Military retired pay is taxed; the old $3,000 exclusion for age 62+ ended after tax year 2014.
Does Washington, D.C. have an estate or inheritance tax?
DC taxes estates above $4,988,400 for deaths in 2026.
Sources (last verified 2026)
- DC Code 47-1803.02 Gross income - items included and excluded — DC Council Law Library (2026-09-24)
- DC Individual and Fiduciary Income Tax Rates — DC Office of Tax and Revenue (2026-09-24)
- 2026 D-76 Estate Tax Instructions — DC Office of Tax and Revenue (2026)
- District of Columbia Retirement Tax Friendliness — SmartAsset (2025)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.