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Personal Income Tax in D.C.

April 13, 2006


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The District of Columbia imposes a personal income tax on your adjusted gross income. In 2006, the rate of tax that will be assessed against your personal income will depend on the following tax rate schedule:

2006 Taxable Income 2006 Rate of Tax
not over $10,000 4%
over $10,000, but not over $40,000 $400 plus 6% of the excess over $10,000
over $40,000 $2,200 plus 8.5% of the excess over $40,000

So, any business income that passes through to you, either in the form of dividends or cash draws, will be subject to personal income tax.



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