2026 tax year · Washington DC
Marketplace seller taxes in Washington DC
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Washington DC that gap is worth $7,440 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what Washington DC and the IRS charge against.
What that leaves you owing in Washington DC
Washington DC uses graduated 2026 income tax brackets topping out at 10.75%, across 6 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| Washington DC income tax | $816 |
| Total tax | $3,458 |
| Effective rate on gross | 7.7% |
Earning more in Washington DC
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Washington DC tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $636 | $2,756 | 18.4% |
| Steady side income | $45,000 | $0 | $45,000 | $2,318 | $10,898 | 24.2% |
| Full-time | $72,000 | $0 | $72,000 | $4,088 | $18,891 | 26.2% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Selling into and out of Washington DC
Income tax follows you: Washington DC taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Washington DC would charge:
| State | Its tax | vs Washington DC |
|---|---|---|
| Virginia | $790 | −$103 |
| Maryland | $813 | −$80 |
- Virginia would take $103 less, $790 against Washington DC's $894.
- Maryland would take $80 less, $813 against Washington DC's $894.
Marketplace seller tax questions in Washington DC
How much should a Washington DC seller set aside?
About 7.7% of gross on the $45,000 example, $3,458 across self-employment tax, federal income tax and $816 to Washington DC. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Washington DC taxes?
No. Washington DC taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Washington DC bill is $816 rather than what gross alone would suggest.