The 2025 picture for District of Columbia residents
In 2025, District of Columbia residents paid federal ordinary income tax at brackets topping out at 37%, plus District of Columbia state tax up to 10.75%, plus Medicare (1.45% + 0.9% additional above $200k single MAGI), plus a federal supplemental-withholding layer on RSU-style income.
2025 AMT exemption
The 2025 federal AMT exemption was $88,100 for single filers. The exemption phased out at 25 cents per dollar of AMTI above $626,350, fully eliminating the exemption for higher earners. That is why ISO exercises in District of Columbia during 2025 produced AMT bills that surprised people running first-order mental math.
District of Columbia layer in 2025
District of Columbia did not impose a separate state AMT in 2025, so federal AMT was the only layer. State ordinary tax still applied to any disqualifying disposition income recognized in the same year.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in District of Columbia in 2025?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. District of Columbia state withholding ran up to 10.75% at the top bracket.
- Did District of Columbia recognize federal QSBS exclusion in 2025?
- District of Columbia's conformity status varies year by year and by type of taxpayer. As of 2025, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2025 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2025, and how did it apply to District of Columbia residents?
- The 37% federal ordinary bracket started around $626,350 of taxable income for single filers in 2025. District of Columbia stacked 10.75% on top of that for high earners, producing a combined top marginal rate of approximately 47.8%.