D.C. Tax Rate Changes Effective October 1, 2018

The District of Columbia’s Office of Tax and Revenue has issued a notification of changes in various tax rates that will become effective on Monday, October 1, 2018.

The real property tax for Class 2 properties will increase to $1.65 per $100 of value for properties worth less than $5,000,000; $1.77 from $5 million to $10 million; and $1.89 for properties valued at more than $10 million.

The hotel rate has increased from 14.8 percent to 14.95 percent, and the tax on tobacco as almost doubled to $4.94 per pack from $2.94 per pack.

No D.C. estate tax return needs to be filed for a person whose death occurs after January 1, 2018 if the gross estate is less than $5,600,000.