District of Columbia Contractor Sales Tax 2026

District of Columbia sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.

District of Columbia sales tax rate for contractors

  • Combined rate: 6% (no local addition)
  • Construction labor taxable: NO - real property labor is exempt
  • Tax authority: DC Office of Tax and Revenue

How District of Columbia treats contractor labor

Real property labor not taxable; TPP repair labor is taxable.

District of Columbia-specific rules

Federal contract work follows separate rules. Most DC projects are public (federal) and require Miller Act bond claims instead of liens.

District of Columbia mechanics lien rights

Beyond sales tax, District of Columbia contractor billing must respect the mechanics lien deadline of 90 days from completion. Preliminary notice: Not required.

District of Columbia contractor licensing

DC Department of Consumer and Regulatory Affairs - required for licensed work. $390 (basic business license). Board: https://dcra.dc.gov.

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District of Columbia contractor resources by trade