District of Columbia Estate Tax Exemption Guide

The District of Columbia charges its own estate tax on a D.C. resident's taxable estate above $4,988,400 for deaths in 2026, and the return and payment are due 10 months after the death (D.C. Code §§ 47-3702(a-1), 47-3705(a)). The District has no inheritance tax for anyone who died after March 31, 1987. The federal estate tax sits on top, but it starts only above $15,000,000 for 2026 deaths.

That gap is the whole story for many D.C. families. An estate can be far too small for the IRS to care about and still owe the District. This guide walks through the D.C. figure, who files, how the rates work, the deadlines, and where the federal tax fits. Each rule cites the D.C. Code section or the agency page behind it.

Two Taxes, and One That No Longer Exists

Here is the short version. Two transfer taxes can reach a D.C. estate:

The District's estate tax. Charged on the estate as a whole, only above the zero bracket amount ($4,988,400 for 2026 deaths), at graduated rates up to 16%. The Office of Tax and Revenue (OTR) runs it.
The federal estate tax. Charged on the estate as a whole, only above the federal exclusion ($15,000,000 for 2026 deaths). The IRS runs it.

The third tax people ask about is an inheritance tax, and the District does not have one for current deaths. More on that below.

For most D.C. families, both numbers are zero. An estate under $4,988,400 owes nothing to the District and nothing to the IRS. The tax questions matter for larger estates, and the District's line is the one a family is likely to hit first. The D.C. estate tax calculator checks an estate against both lines.

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The 2026 Exclusion: $4,988,400

The D.C. Code calls the exclusion the "zero bracket amount." For a person who died after December 31, 2020, it is "$4 million, increased annually, beginning with the year commencing on January 1, 2022, by the cost-of-living adjustment" (D.C. Code § 47-3701(14)(D)). The adjustment tracks the Consumer Price Index for the Washington-Baltimore area, measured against a 2017 base year (§ 47-3701(1)).

So the figure moves every January, and it is keyed to the calendar year of death. OTR publishes each year's number in its D-76 instructions. The 2026 booklet states: "Estates of decedents who died January 1, 2026 - December 31, 2026 have an exclusion amount of $4,988,400.00."

Year of death	D.C. exclusion (zero bracket amount)
2021	$4,000,000
2022	$4,254,800
2023	$4,528,800
2024	$4,715,600
2025	$4,873,200
2026	$4,988,400

Source: OTR, 2026 D-76 Estate Tax Instructions, filing table by date of death. OTR had not published the 2027 figure when this guide was written, so use the 2026 number only for 2026 deaths.

Two things to keep straight:

The figure is per person, by year of death. Use the year the person died, not the year the return is filed.
It is much lower than the federal line. At $4,988,400 against $15,000,000, the District reaches estates the IRS never taxes.

Who Has to File a D.C. Estate Tax Return

The personal representative files. The D.C. Code makes "the personal representative of every estate subject to the tax" file a return, along with "a copy of the federal estate tax return, if any," with the Mayor within 10 months after the death (D.C. Code § 47-3705(a)(1)). The return goes to OTR through MyTax.DC.gov.

The filing test uses the GROSS estate. A personal representative "shall not be required to file a return if the gross estate does not exceed $1 million or the zero bracket amount, whichever is higher" (D.C. Code § 47-3705(a)(2)). Since 2017 the zero bracket amount has been the higher figure, so for a 2026 death the line is $4,988,400 of gross estate.

That gross-estate test catches people off guard. Here is why. The gross estate counts everything before deductions, including:

Real estate, bank and brokerage accounts, and retirement accounts
Life insurance the person owned
Jointly owned property, to the extent federal rules include it
Assets in a revocable living trust

An estate that leaves everything to a surviving spouse may owe no tax at all, and it still has to file if the gross estate is above the line. OTR's instructions add two practical points: the return is due "even if a federal Estate Tax Return (IRS Form 706) is not required to be filed," and the personal representative has to prepare certain Form 706 schedules either way.

D-76 or D-76EZ

OTR uses two returns, both filed and paid electronically on MyTax.DC.gov. According to the 2026 instructions, MyTax gives the estate Form D-76EZ when the estate passes to the surviving spouse, to a 501(c) charitable or tax-exempt organization, or to a mix of the two that leaves a $0 taxable estate. Every other filing estate uses Form D-76. Returns for deaths before 2017 still go on paper.

How the D.C. Estate Tax Rates Work

The tax applies to the taxable estate: the gross estate minus the deductions federal law allows, such as debts, funeral and administration costs, the marital deduction, and the charitable deduction (D.C. Code § 47-3701(12)(C)). One deduction does not carry over. The District computes the taxable estate "without reduction for the deduction provided in section 2058" of the Internal Revenue Code, the federal deduction for state death taxes.

The portion of the taxable estate up to the zero bracket amount is taxed at 0% (D.C. Code § 47-3702(a-1)(1)). Above it, graduated rates apply to each slice. Because the 2026 exclusion falls inside the $4 million to $5 million band, a 2026 estate's first taxed dollars land at 11.2%. OTR's 2026 computation worksheet lays it out this way:

Taxable estate over	But not over	Tax on the lower figure	Rate on the excess
$4,988,400	$5,000,000	$0	11.2%
$5,000,000	$6,000,000	$1,299	12.0%
$6,000,000	$7,000,000	$121,299	12.8%
$7,000,000	$8,000,000	$249,299	13.6%
$8,000,000	$9,000,000	$385,299	14.4%
$9,000,000	$10,000,000	$529,299	15.2%
$10,000,000	and above	$681,299	16.0%

Let's run one number. Say a D.C. resident dies in 2026 with a taxable estate of $5,500,000. The tax is $1,299 on the first $5,000,000, plus 12% of the $500,000 above it ($60,000), for about $61,299 before any out-of-District reduction. The same estate owes no federal estate tax, because it sits far below $15,000,000.

Property Outside the District

A D.C. resident who owns a beach house in Delaware or a car garaged in Virginia gets a proportional break. If real or tangible personal property has a taxable situs outside the District, the tax "shall be reduced by the proportion that the value of the real or tangible property outside the District bears to the amount of the gross estate" (D.C. Code § 47-3702(a-1)(2)). Stocks, bank accounts, and other intangibles of a D.C. resident stay taxable in the District (§ 47-3701(12A)(C)).

Nonresidents Who Own D.C. Property

The reverse also applies. A person who lived in Maryland or Virginia but owned a D.C. condo can owe the District a slice of the tax. For a nonresident who died after 2015, the District computes the tax as if the person were a resident and multiplies it by the share of the gross estate that has its taxable situs in D.C. (D.C. Code § 47-3703(b-1)). Real estate has its situs where it sits (§ 47-3701(12A)(A)).

Spouses and Domestic Partners

The marital deduction works in the District the way it works federally, so property left outright to a surviving spouse is deducted from the taxable estate. The District goes one step further for registered domestic partners. Both the gross estate and the taxable estate are "calculated as if the federal estate tax recognized a domestic partner in the same manner as a spouse" (D.C. Code § 47-3701(5)(B), (12)(C)). A bequest to a domestic partner gets the same treatment as a bequest to a spouse.

Federal law lets a surviving spouse claim the first spouse's unused federal exclusion, a step called portability. The IRS says that election "is made on a timely filed estate tax return for the decedent with a surviving spouse." D.C. Code §§ 47-3701 and 47-3702 contain no matching rule that lets a survivor add the first spouse's unused zero bracket amount. Do not assume a federal portability election carries any District benefit. A couple whose combined estate tops $4,988,400 has a planning question here worth raising with an estate planning attorney or a CPA.

Deadlines, Extensions, Interest, and Penalties

The District's clock is 10 months from the date of death, for both the return and the payment (D.C. Code § 47-3705(a), (c)). Put it on the calendar beside the other dates in the D.C. probate timeline.

D.C. extension. OTR's 2026 instructions name Form D-77, Application for Extension of Time to File DC Estate Tax Return, for a 6-month extension. The request goes in on or before 10 months after the death, electronically, and OTR grants it when the form is complete and the tax shown on it is paid. A further 6 months is available only when the personal representative is outside the United States or in an extreme emergency. (OTR's older estate tax information page still calls the form FR-77. The 2026 booklet uses D-77 throughout.)
Federal extension link. If the personal representative gets an extension for the federal estate tax return, the D.C. filing moves to 30 days after the end of the federal extension (D.C. Code § 47-3705(b)). Payment follows the same date (§ 47-3705(c)). OTR asks for a copy of federal Form 4768 with the D-77.
Interest. OTR charges interest at 10% a year, compounded daily, from the original due date until payment, even when a D.C. extension to file is granted.
Penalty. Late filing or late payment carries a penalty of 5% of the unpaid tax for each month or part of a month, up to 25%.
Refunds. An estate that overpays applies for a refund within 3 years from the date of payment (D.C. Code § 47-3705(d)).

The estate also has an income tax job that is separate from all of this. OTR says a fiduciary files Form D-41 for a D.C. estate whose gross income is $1,675 or more for the year.

No D.C. Inheritance Tax

Heirs in the District pay no tax on what they inherit. OTR says an inheritance tax return "is required for estates of decedents whose deaths occurred prior to April 1, 1987." The estate tax chapter defines a "decedent" as "a deceased person who died on or after April 1, 1987" (D.C. Code § 47-3701(2)), and the old inheritance tax return survives only for earlier deaths: OTR lists Form FR-19 as the "Inheritance Tax Return for Estates of Individuals (Who Died On or Before March 31, 1987 - Revised)."

So a niece, a friend, or a sibling who inherits from a D.C. resident owes the District nothing on that gift. The estate as a whole pays the estate tax, if any is due, before the money reaches anyone.

Neighbors handle this differently. Maryland charges both an estate tax and an inheritance tax, so a family with property on both sides of the line should read the Maryland estate and inheritance tax guide too.

The Federal Estate Tax

The federal tax reaches far fewer estates. The IRS reports that Public Law 119-21, signed July 4, 2025, amended Internal Revenue Code § 2010(c)(3) to set the federal exclusion amount at $15,000,000 for calendar year 2026. The IRS filing threshold for 2025 deaths was $13,990,000.

The IRS filing test adds the person's adjusted taxable gifts and specific gift tax exemption to the gross estate and compares the total with the threshold for the year of death. An estate above the threshold files IRS Form 706. An estate below it may still file to elect portability for a surviving spouse, as described above.

Compare the two lines side by side for a 2026 death:

	District of Columbia	Federal
Exclusion	$4,988,400	$15,000,000
Return	Form D-76 or D-76EZ, MyTax.DC.gov	IRS Form 706
Due	10 months after death	Set by the IRS
Spouse's unused exclusion	No portability rule in §§ 47-3701 to 47-3702	Portability election on a timely Form 706

Estate Tax Is a Different Question From Basis

The estate tax asks whether the estate owes anything at death. A separate federal rule decides what an heir pays in income tax when they later sell an inherited house or stock. That rule usually resets the heir's cost to the value on the date of death, which is the step-up in basis. Most D.C. heirs never touch the estate tax, and almost all of them rely on the step-up. The two rules run on separate tracks.

Avoiding Probate Does Not Avoid the Tax

People often ask whether a trust or a transfer on death deed keeps property out of the estate tax. It does not. Probate avoidance is not tax avoidance: assets in a revocable trust, in a joint account, or passing by a transfer on death deed still count in the gross estate. Those tools change how property passes, and the guide to avoiding probate in D.C. covers each one. They do not shrink the number the District taxes.

A revocable trust can still play a part in tax planning, such as holding a credit shelter share for a surviving spouse. See a revocable trust and estate tax for how D.C. trusts work.

Next Steps for a D.C. Personal Representative

Total the gross estate. Use date-of-death values for everything, including the house, accounts, retirement plans, life insurance, and trust assets.
Compare it with the line for the year of death. For a 2026 death that is $4,988,400. Above it, a D.C. return is due even if no tax is owed.
Mark the 10-month date. The return and the payment are both due 10 months after the death. If you need more time to file, request the D-77 extension by that date and pay the estimated tax with it.
Check out-of-District property. Real estate or tangible property outside D.C. reduces the D.C. tax proportionally.
Look at the federal side separately. Most D.C. estates are far under $15,000,000, but a surviving spouse may still want a Form 706 filed to elect federal portability.
Bring in a professional for a filing estate. A gross estate near or above $4,988,400, property in more than one jurisdiction, or a domestic partner as beneficiary are the cases where an estate attorney or CPA earns the fee.

For the rest of the job, start with the District of Columbia probate guide and the personal representative duties guide.

Frequently Asked Questions

Does the District of Columbia have an estate tax?

Yes. The District charges its own estate tax on the taxable estate of a D.C. resident above the zero bracket amount (D.C. Code § 47-3702(a-1)). For deaths from January 1 through December 31, 2026, the exclusion is $4,988,400, according to the Office of Tax and Revenue's 2026 D-76 instructions. The first taxed dollars of a 2026 estate are taxed at 11.2%, and the top rate is 16% above $10 million.

Does D.C. have an inheritance tax?

No, not for current deaths. The D.C. estate tax chapter defines a decedent as a person who died on or after April 1, 1987 (D.C. Code § 47-3701(2)), and the Office of Tax and Revenue's inheritance tax return, FR-19, is labeled for individuals who died on or before March 31, 1987. Heirs in D.C. pay no tax on what they receive.

When is a D.C. estate tax return due?

The personal representative files the return and pays the tax within 10 months after the death (D.C. Code § 47-3705(a), (c)). The Office of Tax and Revenue grants a 6-month extension on Form D-77 when the form is filed by the 10-month date and the tax shown is paid. Interest still runs from the original due date at 10% a year, compounded daily.

Do I have to file a D.C. estate tax return if no tax is owed?

Maybe. The test looks at the GROSS estate, before deductions. A return is required unless the gross estate does not exceed $1 million or the zero bracket amount, whichever is higher (D.C. Code § 47-3705(a)(2)). For 2026 deaths that line is $4,988,400. An estate above it files even if a marital or charitable deduction brings the tax to zero, usually on Form D-76EZ.

Can an estate owe D.C. estate tax but no federal estate tax?

Yes. For 2026 deaths the federal exclusion is $15,000,000 (IRS), while the District's exclusion is $4,988,400. An estate worth $8 million owes no federal estate tax, yet it can owe District estate tax on the amount above $4,988,400, and the District requires its own return even when no federal Form 706 is filed.

This guide is general information about estates in the District of Columbia. It is not legal advice. Tax figures change every January, so confirm the number for the year of death with the Office of Tax and Revenue, a CPA, or a licensed D.C. attorney.

Sources:

Title: D.C. Code § 47-3701, Definitions. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/47-3701
Title: D.C. Code § 47-3702, Tax on transfer of taxable estate of residents; amounts; credit; property of resident defined. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/47-3702
Title: D.C. Code § 47-3703, Tax on transfer of taxable estate of nonresidents; property of nonresident defined. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/47-3703
Title: D.C. Code § 47-3705, Filing returns; payment of tax due. Publisher: Council of the District of Columbia. Publication Date: Not listed. URL: https://code.dccouncil.gov/us/dc/council/code/sections/47-3705
Title: 2026 D-76 Estate Tax Instructions for Estates of Individuals. Publisher: D.C. Office of the Chief Financial Officer, Office of Tax and Revenue. Publication Date: Revised October 2025. URL: https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2026_D-76_v1.0_final.pdf
Title: DC Estate, Inheritance and Fiduciary Tax Information. Publisher: D.C. Office of Tax and Revenue. Publication Date: Not listed. URL: https://otr.cfo.dc.gov/page/dc-estate-inheritance-and-fiduciary-tax-information
Title: DC Inheritance and Estate Tax Forms. Publisher: D.C. Office of Tax and Revenue. Publication Date: Not listed. URL: https://otr.cfo.dc.gov/page/dc-inheritance-and-estate-tax-forms
Title: What's New, Estate and Gift Tax. Publisher: Internal Revenue Service. Publication Date: Not listed. URL: https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax
Title: Estate Tax. Publisher: Internal Revenue Service. Publication Date: Not listed. URL: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
Title: About Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. Publisher: Internal Revenue Service. Publication Date: Last reviewed July 21, 2026. URL: https://www.irs.gov/forms-pubs/about-form-706

It is not legal advice.