District of Columbia Income Tax Withholding

Reference Number: NFC-22-1668460546
Published: November 14, 2022
Effective: Pay Period 22, 2022

Summary

The income tax withholding formula for the District of Columbia includes the following changes:

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

DC

State Tax Withholding State Code:

11

Acceptable Exemption Form:

D-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/M/H/N, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number Of Allowances field as follows:

First Position − S = Single; M = Married, Filing Jointly; N = Married, Filing Separately; H = Head of Household.

Second and Third Positions − Enter the total number of allowances claimed. If less than 10, precede with a zero (0).

Additional Information

None

Withholding Formula (Effective Pay Period 22, 2022)

  1. Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine the dependent allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income:

    Dependent Allowance = $4,300 x Number of Dependents

  6. Apply the taxable income computed in step 5 to the table below to determine the District of Columbia tax withholding.

    Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $10,000

    $0.00 plus 4.00% of excess over $0

    Over $10,000 but not over $40,000

    $400.00 plus 6.00% of excess over $10,000

    Over $40,000 but not over $60,000

    $2,200.00 plus 6.50% of excess over $40,000

    Over $60,000 but not over $250,000

    $3,500.00 plus 8.50% of excess over $60,000

    Over $250,000 but not over $500,000

    $19,650.00 plus 9.25% of excess over $250,000

    Over $500,000 but not over $1,000,000

    $42,775.00 plus 9.75% of excess over $500,000

    Over $1,000,000

    $91,525.00 plus 10.75% of excess over $1,000,000

     

  7. Divide the annual District of Columbia tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly District of Columbia tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the NFC Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.