Retiring in Washington, DC: how your income is taxed
Washington, DC is less tax-friendly for retirees. On a typical retirement income it ranks #43 of 51 for the lowest state income tax.
The rules in Washington, DC
- Social Security: Social Security benefits are fully exempt from DC income tax.
- Pensions: All pensions, private and government, are fully taxed. The former $3,000 exclusion for military, D.C. and federal pensions at 62 and older was repealed starting with tax year 2015 (D.C. Law 20-155). Survivor benefits from a D.C. or federal government pension are still excluded for survivors 62 and older (Form D-40, line 12).
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are taxed as ordinary income at D.C.'s regular rates.
- At 65 and older: Each filer 65 or older adds $2,050 to the standard deduction ($1,650 per spouse on a joint return). DC does not allow the federal senior deduction.
Calculate your Washington, DC retirement taxes
State income tax in Washington, DC: $1,111 a year
In Washington, DC, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Washington, DC you'd pay about $1,111 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $64,553 (7.8% total).
Washington, DC ranks #43 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Washington, DC
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $1,111 | $180 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $5,357 | $3,883 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Washington, DC's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Washington, DC in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Washington, DC come from (IRS migration data, 2022–2023).
- Maryland to Washington, DC
- Virginia to Washington, DC
- New York to Washington, DC
- California to Washington, DC
- Florida to Washington, DC
- Pennsylvania to Washington, DC
Frequently asked questions
Does Washington, DC tax Social Security?
Not taxed. Social Security benefits are fully exempt from DC income tax.
Does Washington, DC tax pensions?
Taxed. All pensions, private and government, are fully taxed. The former $3,000 exclusion for military, D.C. and federal pensions at 62 and older was repealed starting with tax year 2015 (D.C. Law 20-155). Survivor benefits from a D.C. or federal government pension are still excluded for survivors 62 and older (Form D-40, line 12).
Does Washington, DC tax 401(k) and IRA withdrawals?
Taxed. 401(k) and IRA withdrawals are taxed as ordinary income at D.C.'s regular rates.
Is Washington, DC a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Washington, DC charges about $1,111 in state income tax, ranking #43 of 51 (lowest tax first).
Related
Sources: code.dccouncil.gov, otr.cfo.dc.gov, cfo.dc.gov. Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.