The DC estate tax reaches far smaller estates than the federal tax: for a 2025 death, a DC estate tax return is due once the gross estate hits $4,873,200. DC requires its estate tax return, Form D-76 or D-76EZ, even when no federal estate tax return has to be filed., If you're settling a parent's estate in the District, or you own a DC condo but live in Maryland or Virginia, this is the line to check first.

In This Guide

What the DC Estate Tax Is

The DC estate tax is the District's own tax, run by the Office of Tax and Revenue (OTR) under D.C. Code § 47-3702. The DC estate tax applies to the taxable estate of every DC resident who died after December 31, 2015.

The federal estate tax is a separate tax with a much higher exclusion.

The Zero Bracket Amount

The DC estate tax zero bracket amount, which OTR also calls the exclusion amount, is the part of the taxable estate taxed at 0%. D.C. Code § 47-3701 set the DC zero bracket amount at $4 million for deaths after December 31, 2020, and since 2022 it rises each year with Washington-Baltimore consumer prices.

OTR's filing-requirement list, which runs through deaths in 2025, gives the DC zero bracket amount as $4,000,000 for 2021 deaths and $4,873,200 for 2025 deaths. For a 2026 death, check OTR's estate tax page for the current figure before deciding whether to file.

DC Estate Tax Rates

Taxable estate Rate on that slice
Up to $4,873,200 (2025 deaths) 0%
To $5M 11.2%
$5M–$6M 12%
$6M–$7M 12.8%
$7M–$8M 13.6%
$8M–$9M 14.4%
$9M–$10M 15.2%
Over $10M 16%

D.C. Code § 47-3702 also lists lower DC estate tax brackets (6.4% to 10.4%), but for deaths after 2020 they fall inside the 0% portion, because the DC zero bracket amount is at least $4 million.

Who Files Form D-76, and When

Under OTR's rule, a DC Estate Tax Return (Form D-76 or Form D-76EZ) must be filed when the gross estate reaches the zero bracket amount for the year of death, even if no federal Form 706 is required.

Whether you file depends on the gross estate; the DC estate tax itself is figured on the taxable estate. The DC return must be filed and the tax paid within 10 months after the date of death.

Owing DC but Not the IRS

The federal basic exclusion is $15,000,000 for deaths in 2026, up from $13,990,000 for 2025 deaths, and the top federal estate tax rate is 40%.

The federal exclusion is measured against lifetime taxable gifts plus the estate, not the estate alone. So an estate whose DC taxable estate tops the zero bracket amount ($4,873,200 for 2025 deaths), and whose value plus lifetime taxable gifts stays under the federal exclusion, can owe DC estate tax while owing nothing to the IRS. When a federal return is filed, Form 706 allows a deduction on line 3b for estate taxes paid to any state or the District of Columbia.

Nonresidents Who Own DC Property

D.C. Code § 47-3703 taxes every nonresident's taxable estate that has its taxable situs in DC. What counts as DC property depends on the asset:

  • Real estate: counts where it sits, so a DC condo is DC property.
  • Tangible personal property: counts where it's customarily kept at death.
  • Intangible personal property: counts at the owner's domicile, unless used in a DC trade or business.

DC figures a nonresident's estate tax on the resident schedule, then multiplies it by the DC share: the value of the DC-situs property divided by the whole gross estate.

Under D.C. Code § 47-3705, no DC estate tax return is required if the gross estate does not exceed $1 million or the zero bracket amount, whichever is higher. The DC filing test counts the whole gross estate, not just the DC property, so a modest DC condo in a large estate can still require a DC return.

DC Residents With Property Elsewhere

It works in reverse, too: if a DC resident owned real estate or tangible personal property with a taxable situs outside the District, such as a vacation home in another state, the DC estate tax is reduced by the share that out-of-DC property makes up of the gross estate.

This Is Not Medicaid Estate Recovery

Medicaid estate recovery is repayment, not a tax: the DC Department of Health Care Finance (DHCF) must request repayment from the estate of a deceased beneficiary who received Medicaid coverage at age 55 or older. See our guide to DC Medicaid estate recovery.

Frequently Asked Questions

What is the DC estate tax exemption for 2026?

What people call the DC estate tax exemption is the zero bracket amount, which OTR also calls the exclusion amount. OTR's filing-requirement list runs through deaths in 2025, when the DC zero bracket amount was $4,873,200, and the DC amount rises with a cost-of-living adjustment each year. For a 2026 death, confirm the current figure on OTR's estate tax page.

Can a surviving spouse use the deceased spouse's unused federal exclusion?

A surviving spouse can use a deceased spouse's unused federal exclusion (the DSUE amount) only if the executor files Form 706 computing it and makes the election within 9 months of death, or by the end of a 6-month extension. An executor with no federal filing requirement who did not file Form 706 on time may be able to file Form 706 to elect portability of the DSUE amount to the surviving spouse up to the fifth anniversary of the death, under IRS Rev. Proc. 2022-32.

I live in Virginia and own a DC condo. Does DC tax it?

It can. DC real estate owned directly by a nonresident has its taxable situs in DC, so DC can tax a Virginia resident's estate on the DC share of the whole gross estate. How the condo is titled matters: OTR's D-76 instructions treat real estate held through a partnership as intangible personal property, taxable at the owner's domicile.

Learn More

FinancialWhich States Have an Estate or Inheritance TaxMost states have no estate or inheritance tax, but 16 do. See which states tax estates, which tax heirs, and find your state's rules in one place. FinancialHow to Pay for Senior Care in Washington, DCHow to pay for senior care in Washington, DC: a semi-private nursing home room runs $146,730 a year, and DC Medicaid's 2026 income limit is $2,982 a month. FinancialHow the District of Columbia Taxes Retirement Income for SeniorsDC doesn't tax Social Security, but it taxes pensions, military retirement and IRA income at 4% to 10.75%. Its old $3,000 pension exclusion ended in 2015. FinancialMaryland Estate Tax: Who Owes It and How MuchMaryland taxes estates over $5M, capped at 16% of the excess, and charges a separate 10% inheritance tax on heirs outside the close-family list. MedicaidDC Medicaid Estate Recovery: What DHCF Can Recover After DeathDC Medicaid estate recovery in 2026: what DHCF recovers, the age-55 trigger, the home lien, the spouse and disabled-child exemptions, and hardship waivers.

Find personalized help planning for a parent's DC estate and care costs at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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