How to Become Tax Exempt in DC: A Guide

How do I become tax exempt in DC?
To apply for recognition of exemption from District of Columbia taxation, please visit MyTax.DC.gov. For questions, please contact OTR’s Customer Service Administration at (202) 727-4TAX (4829).
Read more on otr.cfo.dc.gov

If you live in Washington, DC, or own a business there, you might be asking how to get tax-exempt status. You can save money by avoiding taxes on your income, property, and sales. The steps you can take to become tax exempt in DC are covered in this article.

You must first ascertain whether you qualify for a tax exemption. Charitable organizations, religious institutions, and governmental bodies are just a few of the entities that are free from taxes in DC. On the website of the DC Office of Tax and Revenue, you may discover a comprehensive list of qualifying groups.

You must submit an application for tax exemption as soon as you’ve decided you qualify. To do this, complete the necessary form and deliver it to the DC Office of Tax and Revenue. Depending on the kind of tax exemption you’re requesting, you must fill out a specific form. If you are a nonprofit organization, for instance, you must complete Form FR-164; if you are a government body, you must complete Form FR-164A.

Your application will be examined after submission by the DC Office of Tax and Revenue. You will be given tax exemption if your application is accepted. Remember that tax exemptions must be renewed from time to time because they are not indefinite.

Let’s now address some relevant inquiries about taxes in DC.

What services in Washington, DC, are taxable?

In DC, the majority of services are tax-free. There are certain exceptions, though, such as:

Parking and car wash services are also available. – Memberships to fitness centers – Services for cable TV and storage Who thus has the highest sales tax?

DC currently has a 10.25% top sales tax rate. This rate includes a stadium tax of 0.5%, a sales tax of 6%, and a special company tax of 3.75%.

Can I buy bottled water in DC and is it taxable?

Yes, Washington, DC taxes bottled water. It qualifies as a food item and is charged 6% regular sales tax.

Who is exempt from the DC sales tax?

Whether a citizen or visitor, everybody who makes a purchase in DC is accountable for paying the sales tax. However, as was already said, some organizations may qualify for tax exemption.