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The District of Columbias government relies on three main taxes. In tax year 2021, the income tax was the Districts main revenue source at 35 percent. The property tax, predominantly taxes on commercial properties, was the second largest source with 30.4 percent.
How does DC make money?
In addition to federal income taxes, taxpayers in the nations capital pay local taxes to the District of Columbia. These include a district income tax, with rates ranging from 4% to 10.75%, a 6% sales tax and property taxes on real estate. The District has an average effective property tax rate of 0.56%.
Where does DC get its funding?
In tax year 2021, the income tax was the Districts main revenue source at 35 percent. The property tax, predominantly taxes on commercial properties, was the second largest source with 30.4 percent. And the Districts sales, use, and excise tax was the third with 13.1 percent.
How does DC tax income?
Introduction. The U.S. central banking systemthe Federal Reserve, or the Fedis the most powerful economic institution in the United States, and perhaps the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.
How much federal funding does DC get?
The Constitution dictates that the federal district be under the jurisdiction of the US Congress. Washington, DC operates as a state while also performing functions of a city and a county. We are treated as a state in more than 500 federal laws. We are leaders in a region of 4 million people and growing.
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