District of Columbia Sales Tax Nexus: Economic Nexus Threshold (2026)

What to do after crossing the District of Columbia threshold

When it starts:

• The thresholds are 'more than' tests: collection starts on the 201st sale if the dollar threshold has not been reached, and the obligation continues through the following calendar year.

1. Confirm the numbers. Check your District of Columbia sales against the measure and period in the key facts above.
2. Register before you collect. Use District of Columbia's official registration page. Collecting a state's tax without a registration is generally not allowed.
3. Collect and file. Charge District of Columbia sales tax on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
4. Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.

Physical presence and inventory in District of Columbia

Inventory or other property in the state (including Amazon FBA or 3PL warehouse inventory), employees, or an office generally creates physical-presence nexus regardless of the economic threshold. OTR: sellers delivering goods or taxable services in DC through employees or independent contractors have physical presence and must collect on all DC sales regardless of the thresholds.

Marketplace sellers in District of Columbia

Do marketplace sales count toward your own threshold? Yes, counted.

OTR FAQ: if a remote seller sells on its own website and on a marketplace, both sales streams count toward the threshold (e.g., 100 website sales + 150 marketplace sales exceeds 200); the seller then collects on its website sales and the facilitator collects on marketplace sales (facilitators must collect from 4/1/2019).

Other things to know about District of Columbia

• Sales to purchasers holding valid DC exemption certificates count toward both thresholds (OTR FAQ).
• Remote sellers register as a new business (Form FR-500 via MyTax.DC.gov) and indicate they are a remote seller; returns are due the 20th of the month after the period.
• General rate rises from 6% to 7% for periods beginning 10/1/2026; other DC categories carry different rates (e.g., 10% prepared food/alcohol for on-premises consumption).