Taxes / State tax rules / District of Columbia
Selling on eBay, Poshmark or Etsy from the District of Columbia: sales tax and 1099-K rules
In the District of Columbia, D.C. Code § 47-2002.01a requires a marketplace facilitator to collect and remit sales tax on every sale it facilitates for marketplace sellers to DC customers, whether or not the seller would have had to collect, and DC's general sales tax rate stays 6% through September 30, 2027. For Form 1099-K, DC has a rule for copies of federal Forms 1099: the Office of Tax and Revenue's 2025 filing instructions say they must be submitted to report income of $600 or more paid to a DC resident in a calendar year, and list the 1099-K among the forms DC accepts; they don't set a separate 1099-K test.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
District of Columbia in short
- General sales tax:
- Yes, 6% state rate
- Marketplace facilitator law:
- Yes: D.C. Code § 47-2002.01a (D.C. Law 22-258, Internet Sales Tax Amendment Act of 2018), since Jan 1, 2019
- Form 1099-K:
- State figure for copies of Forms 1099: copies of federal Forms 1099 reporting income of $600 or more paid to a DC resident individual in a calendar year
Who collects the tax on a marketplace sale
Marketplace facilitators collect and remit sales tax on their own sales and on all sales they facilitate for marketplace sellers to customers in DC, regardless of whether the seller would have had to collect tax had the sale not gone through the facilitator. D.C. Law 22-258 says the section applies as of January 1, 2019. The statute sets no sales threshold for facilitators.
If you sell only through marketplaces
D.C. Code § 47-2001(l) lists both marketplace facilitators and marketplace sellers as "retailers" (a change that applies as of April 1, 2019). OTR's marketplace seller FAQ could not be fetched for this check, so this page doesn't say whether a DC seller who sells only through marketplaces must register; OTR's general sales tax FAQ, which doesn't address marketplace sales, says a return is filed by anyone with a taxable sale who has nexus in the District.
Registration, resale certificates and what changes when you also sell direct have their own page: The District of Columbia: seller's permit and resale certificate rules.
The law: D.C. Code § 47-2002.01a (D.C. Law 22-258, Internet Sales Tax Amendment Act of 2018), effective .
"Marketplace facilitators shall collect and remit sales tax on all sales the marketplace facilitator makes on its own behalf and all sales the marketplace facilitator facilitates on behalf of marketplace sellers to customers in the District of Columbia"
Sources: § 47-2002.01a. Marketplace facilitators; sales tax requirements; § 47-2001. Definitions; Sales and Use Tax FAQs.
The District of Columbia's sales tax
DC's general sales tax rate is 6%. The Office of Tax and Revenue (OTR) says a planned increase to 7% has been postponed and the general rate remains 6% through September 30, 2027; other rates apply to items such as prepared food (10%) and lodging (15.95%).
"The increase in the general sales tax rate to 7% has been postponed. The general sales tax rate remains 6% through September 30, 2027."
Sources: Sales and Use Tax FAQs.
Form 1099-K: the District of Columbia and the federal test
OTR's 2025 instructions for submitting 1099s say copies of federal Form 1099 must be submitted to report income of $600 or more paid to a DC resident individual in a calendar year, and list Form 1099-K among the only 1099s DC accepts. The instructions add that nonresidents are not required to file if no DC withholding applies.
| Test | Dollar amount | Transactions | Wording |
|---|---|---|---|
| District of Columbia (copies of Forms 1099) | $600 | No count | copies of federal Forms 1099 reporting income of $600 or more paid to a DC resident individual in a calendar year |
| Federal (IRS) | Over $20,000 | More than 200 | Over $20,000 in more than 200 transactions, through one app or marketplace in a calendar year |
"Copies of federal Form 1099 must be submitted to report income of $600 or more, or other payments subject to DC withholding, other than salaries or wages subject to withholding, paid to a DC resident individual in any calendar year."
"Filing is required if income of $600 or more is reported for both District of Columbia residents and nonresidents. However, nonresidents are not required to file if no DC Withholding applies."
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Sources: 2025 MyTax 1099/W-2G instructions.
Worked examples
A $50 item shipped to a DC buyer
The marketplace collects DC sales tax at the 6% general rate: $50 x 6% = $3.00, added to the buyer's total and sent to OTR by the marketplace under § 47-2002.01a.
$900 of sales by a DC resident on one marketplace
$900 is far below the federal test (over $20,000 in more than 200 transactions) but over DC's $600 figure for 1099 copies, so a 1099-K copy for DC is possible at this level; the instructions don't say whether a platform with no federal 1099-K to file must create one for DC. At $500, neither figure is reached.
Edge cases and details
- D.C. Law 22-258 says § 47-2002.01a applies as of January 1, 2019, while its change making marketplace facilitators and marketplace sellers "retailers" in § 47-2001(l) applies as of April 1, 2019.
- Remote sellers have economic nexus with DC at more than $100,000 of gross receipts from retail sales delivered into the District, or more than 200 separate retail sales delivered there, according to OTR's sales tax FAQ.
- OTR's 2025 instructions say nonresidents are not required to file 1099s if no DC withholding applies.
- DC taxes some items above the general rate: OTR lists 10% on food and drink for immediate consumption and 15.95% on rooms and lodgings.
What to do
- Keep each marketplace's sales report, which shows the DC tax it collected on your sales.
- If you also sell directly to DC customers, read OTR's sales tax FAQ on who must file a sales tax return.
- If a 1099-K arrives for less than the federal threshold, compare it with your sales report; check with a tax professional about how it fits your returns.
Common questions
Why would a DC seller get a 1099-K under $20,000?
The IRS says platforms may send a 1099-K below the federal threshold. OTR's 2025 instructions call for copies of federal Forms 1099, including the 1099-K, reporting income of $600 or more paid to a DC resident; they don't say a platform must issue a 1099-K the federal test doesn't require.
Is DC's sales tax going up to 7%?
Not yet. OTR says the increase in the general sales tax rate to 7% has been postponed and the rate remains 6% through September 30, 2027.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- The District of Columbia: seller's permit and resale certificate rules
- Delaware: sales tax and 1099-K rules
- Florida: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes the District of Columbia's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the District's tax office.
Sources
Official pages this page is built from, with the day each was read.
- Council of the District of Columbia, D.C. Code: § 47-2002.01a. Marketplace facilitators; sales tax requirements; read . Facilitators collect on all facilitated sales to DC customers; applies as of January 1, 2019.
- Council of the District of Columbia, D.C. Code: § 47-2001. Definitions; read . Definitions of marketplace, marketplace facilitator and marketplace seller; both are retailers as of April 1, 2019.
- DC Office of Tax and Revenue: Sales and Use Tax FAQs; read . 6% rate through September 30, 2027; other rates; who files; economic nexus.
- DC Office of Tax and Revenue: 2025 MyTax 1099/W-2G instructions; read . $600 threshold for 1099 copies; 1099-K among accepted forms; nonresident rule.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
Free 1-page Reseller Cheat Sheet: fees on 8 platforms, Media Mail and stamp prices
What each platform takes from a $10, $25 and $50 sale, Media Mail 1-10 lb, Ground Advantage to Zones 1, 5 and 8, and the Forever stamp, on one printable page. The link appears as soon as you sign up.