District of Columbia estate tax
District of Columbia estate tax: the 2026 exclusion, the 10-month return, and disputes with OTR.
The District taxes the part of a taxable estate above its zero bracket amount, which OTR lists as $4,988,400 for deaths in 2026, at rates that rise to 16%. Where a return is required, the personal representative files it and pays the tax within 10 months after the death. OTR's instructions put the penalty for a late return, late payment, or both at 5% a month up to 25% of the unpaid tax, and interest runs at 10% a year, compounded daily. A proposed assessment can be protested at the Office of Administrative Hearings no later than 30 days after it is sent.
Mr. Powell of the Law Office of Alexander Powell, PLLC handles District of Columbia estate tax disputes for personal representatives and beneficiaries, and for the estates lawyers who represent them. He is admitted in the District of Columbia and Maryland and works from 1629 K Street NW, Suite 300 in Washington, DC.
D.C. Code sections 47-3702, 47-3703, 47-3705, 47-3708, 47-3712 to 47-3714, 47-3717, 47-3303, 47-4201, 47-4213, and 47-4312 were checked on code.dccouncil.gov, and OTR's 2026 D-76 instructions and its notice of October 1, 2025 tax changes on otr.cfo.dc.gov, on November 8, 2026. The notice in hand controls. This page is not legal advice.
The tax
Zero below $4,988,400, rising to 16%.
The District of Columbia imposes an estate tax on the taxable estate of every resident decedent, and on a nonresident decedent's taxable estate that has its taxable situs in the District, measured by the share of the gross estate that has its taxable situs in the District. Under D.C. Code section 47-3702(a-1), the portion of the taxable estate that does not exceed the zero bracket amount is taxed at 0%, and the rates on the taxable estate above it rise to 16%. For deaths from January 1, 2026 through December 31, 2026, the Office of Tax and Revenue lists the zero bracket amount as $4,988,400.
For 2026 deaths, OTR's computation worksheet applies 11.2% to the taxable estate between $4,988,400 and $5,000,000, then 12%, 12.8%, 13.6%, 14.4%, and 15.2% on each $1,000,000 above that, and 16% on the taxable estate above $10,000,000. Under section 47-3703(b-1), a nonresident's tax is the tax figured that way multiplied by the share of the gross estate that has its taxable situs in the District. Under section 47-3702(a-1)(2), a resident's tax is reduced by the proportion that the value of real or tangible personal property with a taxable situs outside the District bears to the gross estate, so a house in Maryland or Virginia lowers the District tax.
Who must file a District of Columbia estate tax return?
The personal representative, when the gross estate reaches the filing threshold. Under D.C. Code section 47-3705(a), the personal representative of every estate subject to the tax files with the District, within 10 months after the death of the decedent, a return for the tax due and a copy of the federal estate tax return, if any, and a return is not required if the gross estate does not exceed $1 million or the zero bracket amount, whichever is higher. For deaths in 2026, OTR's instructions call for a return when the gross estate is $4,988,400 or more, the safer reading at the exact amount, and say D-76 returns are filed and paid electronically via MyTax.DC.gov.
When is District of Columbia estate tax due?
With the return, 10 months after the death. Under section 47-3705(c), the personal representative pays the tax no later than the date the return is required to be filed, and under section 47-3705(b) a federal extension of time to file the federal estate tax return extends the District filing until 30 days after the federal extension ends. OTR's instructions say a Form D-77 request for 6 more months to file must be submitted on or before 10 months after the date of death and is granted if the tax due is paid with it, and that the late payment penalty and interest run without regard to an extension of time for filing, except when the federal extension applies.
Official source: D.C. Code section 47-3702
Official source: D.C. Code section 47-3703
Official source: D.C. Code section 47-3705
Official source: OTR, 2026 D-76 Estate Tax Instructions
Official source: OTR, Notice of Oct. 1, 2025 Tax Changes
The personal representative
Duties the D.C. Code puts on the estate.
Pay before distributing
Under D.C. Code section 47-3713, the personal representative pays the District any taxes, penalties, and interest due before distribution of the estate, and each payment is applied first to interest, then to any penalty, and then to the tax.
Personal liability for early distribution
Under section 47-3712, a personal representative who distributes estate property to beneficiaries or creditors without having paid or secured the tax, interest, or penalties is personally liable for the amount that remains due and unpaid, to the full extent of any property of the person or estate that comes into the personal representative's custody or control.
Federal changes
Under section 47-3708, a personal representative who files an amended federal estate tax return files an amended District return within 30 days after filing the federal one, and after a final determination of a federal deficiency gives the District written notice within 30 days, paying any additional District tax with interest.
Who bears the tax
Under section 47-3714(a), except as the decedent's will provides otherwise, estate tax paid by a fiduciary is prorated among the persons interested in the estate to whom the property is or may be transferred.
Refunds
Under section 47-3705(d), an estate that has overpaid is entitled to a refund, and the application is made within 3 years from the date of payment.
Official source: D.C. Code section 47-3708
Official source: D.C. Code section 47-3712
Official source: D.C. Code section 47-3713
Official source: D.C. Code section 47-3714
When I take on a District of Columbia estate tax matter.
I handle a District of Columbia estate tax matter when OTR has proposed an assessment, including one that follows a change to the federal estate tax, when penalties and interest have built on a late return or payment, or when the personal representative and the beneficiaries disagree about who bears the tax. The 30-day protest window at the Office of Administrative Hearings runs from the date the proposed assessment is sent, so the date on the notice comes first.
Personal representatives, beneficiaries, and their estates lawyers can send the date of death, the D-76 as filed, the federal Form 706 if one was filed, and OTR's notice with the date printed on it.
The protest and collection routes for other District taxes are on D.C. Office of Tax and Revenue disputes and D.C. OTR collections. Maryland's estate tax and inheritance tax are on Maryland inheritance tax and estate tax.
Questions
Penalties and disputes.
What are the District of Columbia penalties and interest on a late estate tax return or payment?
Each can reach 25% of the tax, and interest runs at 10% a year, compounded daily. Under D.C. Code section 47-4213(a), unless the failure is due to reasonable cause and not due to willful neglect, a late return adds 5% of the tax for each month or fraction of a month, not exceeding 25% in the aggregate, and a late payment of the tax shown adds the same 5% a month, not exceeding 25%. For a month in which both apply, section 47-4213(b) reduces the late filing addition by the late payment addition. Section 47-4201(d) sets the underpayment interest rate at 10% per year, compounded daily.
How is a District of Columbia estate tax assessment disputed?
By a protest at the Office of Administrative Hearings within 30 days of the proposed assessment, or by paying and appealing to the Superior Court. Under D.C. Code section 47-3717(a), estate tax deficiency assessments are governed by section 47-4312, under which the District sends a proposed assessment and, no later than 30 days after it is sent, the person may file a protest with the Office of Administrative Hearings and serve a copy on the Mayor. Filing that protest is an election that the Office of Administrative Hearings is the exclusive forum. Under section 47-3303, a person may instead appeal an assessment to the Superior Court within 6 months after the date of the assessment, after first paying the tax, penalties, and interest.
Official source: D.C. Code section 47-4213
Official source: D.C. Code section 47-4201
Official source: D.C. Code section 47-3717
Official source: D.C. Code section 47-4312
Official source: D.C. Code section 47-3303
Related pages
Related District of Columbia tax resources.
- D.C. Office of Tax and Revenue disputesOTR notices, the informal conference, and the OAH protest path.
- D.C. OTR collectionsLiens, levies, and payment agreements after a D.C. balance is final.
- Maryland inheritance tax and estate taxThe 10% inheritance tax, Maryland estate tax disputes, and Maryland Tax Court appeals.
- Washington, DC tax attorneyIRS and District tax matters from the Washington, DC office.
- Practice areasFederal, District of Columbia, and Maryland tax controversy matters.
Send the date of death and any OTR notice.
Say whether a D-76 was filed and when, whether a federal estate tax return was filed or changed, and the date printed on any OTR notice. Send only a high-level summary.
Requesting a consultation does not make Mr. Powell your lawyer, provide legal advice, or protect a deadline.
Law Office of Alexander Powell, PLLC. 1629 K Street NW, Suite 300, Washington, DC 20006.