Guide to the Washington, D.C. Estate Tax

Washington, D.C. does levy an estate tax on the estates of certain people after they have died. Specifically, the D.C. estate tax exclusion amount is $4,988,400 for people who die in 2026. This is up from past years. The rate of the DC estate tax is graduated, running from 11.2% to 16%.

Consider finding a financial advisor to help you build an estate plan. Speak with an advisor today.

Washington, D.C. Estate Tax Exemption

For 2026, the Washington, D.C. estate tax exclusion amount is $4,988,400. ¹ That means the estate of a person who dies in 2026 generally does not owe D.C. estate tax unless the taxable estate exceeds that amount. A D.C. estate tax return may be required when the gross estate is $4,988,400 or more.

The estate tax exemption in D.C. is not portable between spouses. When the second of two spouses dies, that person can only apply their exemption, not that plus the exemption the deceased partner was entitled to.

Washington, D.C. Estate Tax Rate

The estate tax rate in D.C. is progressive, meaning it goes up as the size of the estate increases. For people who die in 2026, the estate tax rate in Washington, D.C. ranges from 11.2% to 16%.

Washington, D.C. Estate Tax Rates

What Is the Estate Tax?

The estate tax is levied against some estates after someone has died but before the money passes on as directed in the deceased’s will or other legal documents. It generally only applies to estates worth a certain amount as determined by the state government levying the tax. The federal government also has an estate tax.

The estate tax is not the same as the inheritance tax, which is paid by someone receiving money from a person who recently died. They pay the tax after they get the money.

Washington, D.C. Inheritance Tax and Gift Tax

There is no inheritance tax in Washington, DC. If you are getting money from someone who lived outside of D.C. when they died, though, check local laws. In Kentucky, for instance, all in-state property is subject to the inheritance tax even if the person taking ownership lives elsewhere.

D.C. also does not have a gift tax. At the federal level, the annual gift tax exclusion is $19,000 per recipient in 2026. Giving more than $19,000 to one recipient during the year does not automatically mean federal gift tax is due. Rather, the amount above the annual exclusion may instead reduce the donor’s remaining lifetime estate and gift tax exclusion. Additionally, it may be necessary to file a federal gift tax return.

Washington, D.C. Estate Tax for Married Couples

The Washington, D.C. estate tax is not portable between couples. When both spouses die, only one exemption is applied to the estate.

Federal Estate Tax

The federal estate tax has a much higher exclusion amount than the D.C. estate tax. For 2026, the federal basic exclusion amount is $15 million per individual. That’s up from $13.99 million in 2025. Unlike the D.C. estate tax exemption, the federal exclusion can be portable between spouses when the required election is made.

If an estate tax exceeds that amount, the top tax rate is 40%. A full chart of federal estate tax rates is below:

Federal Estate Tax Rates

Filing a Washington, D.C. Estate Tax Return

An estate can require a D.C. estate tax filing even when its value is nowhere near the federal threshold. For a person who dies in 2026, the District’s filing threshold is $4,988,400, while the federal basic exclusion amount is $15 million. Those differing amounts make it important to check D.C. rules separately rather than assuming the federal threshold controls both filings.

The estate generally has 10 months from the date of death to complete the D.C. return and pay any tax due. Different timing may apply when an extension is available. The person administering tahe estate should determine the deadline that applies to that estate.

Suppose a D.C. resident dies in 2026 leaving a gross estate valued at $6 million. That amount is $1,011,600 above the District’s $4,988,400 threshold but still $9 million below the federal basic exclusion amount. The estate’s D.C. tax bill would depend on the taxable-estate calculation, including any deductions and adjustments that apply, rather than simply applying to the full $6 million.

Overall Washington, D.C. Tax Picture

Washington, D.C. is moderately tax-friendly for retirees. Social Security payments are not taxed, but withdrawals from retirement accounts are fully taxed. Income tax in Washington, D.C. ranges from 4% to 10.75%. If you are moving to Washington and want to figure out your take home pay, use SmartAsset’s D.C. paycheck calculator.

The effective property tax rate on owner-occupied housing value in the District is 0.60%, which is fairly low on a national scale.

Resources for Estate Tax Help

• If the estate tax seems overwhelming, consider getting a financial advisor to help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you have a sizable estate, estate taxes on either the state or federal level could be hefty. However, you can easily plan ahead for taxes to maximize your loved ones’ inheritances. For example, you can gift portions of your estate in advance to heirs, or even set up a trust.

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