How does the District of Columbia tax capital gains?

The District of Columbia taxes capital gains as ordinary income under its standard graduated brackets of 4% to 10.75%. There is no preferential long-term capital gains rate at the DC level, so a long-term gain is taxed at the same DC rate as your wages.

What is the difference between short-term and long-term gains?

Short-term gains, on assets held one year or less, are taxed at ordinary federal income tax rates. Long-term gains, on assets held more than one year, get preferential federal rates of 0%, 15%, or 20%. DC taxes both the same way regardless of holding period.

What federal long-term capital gains rate applies?

Federal long-term rates are 0%, 15%, or 20% depending on your taxable income bracket. Most middle-income filers pay 15%. This calculator lets you select the federal rate that matches your income so the estimate reflects your situation.

Does DC have a Net Investment Income Tax?

The 3.8% Net Investment Income Tax is a federal surtax on high earners, not a DC tax. It can apply on top of federal capital gains rates once your modified AGI exceeds the threshold, but it is separate from the District of Columbia income tax modeled here.

Is this calculator exact?

It is an estimate combining a federal capital gains rate you select with the DC ordinary-income rate. Your real liability depends on your full taxable income, other gains and losses, and any federal surtaxes. Confirm with a tax professional.

District of Columbia Capital Gains Tax Calculator

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The District of Columbia offers no special break on investment profits — it taxes capital gains as ordinary income under the same 4% to 10.75% graduated brackets that apply to wages. This calculator combines that DC rate with the federal capital gains rate (which does depend on holding period) to estimate your total tax and after-tax proceeds.

How it works

Your total capital gains tax stacks federal and DC layers:

Federal layer. Short-term gains (held ≤ 1 year) are taxed at your ordinary federal rate; long-term gains (held > 1 year) get preferential rates of 0%, 15%, or 20%.
DC layer. DC taxes the full gain at your marginal DC ordinary-income rate, with no holding-period distinction.
Combine. Total tax is gain × (federalRate + dcRate); after-tax proceeds are gain − totalTax.

Tips and example

On a $20,000 long-term gain with a 15% federal rate and a 6.5% DC rate, federal tax is $3,000 and DC tax is $1,300, for $4,300 total — leaving $15,700 after tax. The same gain held short-term and taxed at a 24% federal ordinary rate would owe $4,800 federal plus $1,300 DC, or $6,100.

DC’s lack of a preferential rate means long-term holders still pay full DC tax on gains. The federal 3.8% Net Investment Income Tax may apply on top for high earners. This is an estimate — confirm your federal bracket and DC rate against your full return.