District of ColumbiaD.C. would set a 7% meals tax from October 2027
If enacted, D.C. would tax prepared food and drinks at 7% total from October 2027, while leaving the preceding year's rate unclear.
What it does
If the bill takes effect, D.C.'s total tax on prepared food and drinks would be 6% through September 2026 and 7% from October 2027. The year between is unclear.
Argument forKeeping meals taxes near the general sales tax could help residents and visitors manage the total cost of eating out.
Argument againstThe unclear rate for October 2026 through September 2027 could leave food sellers unsure how much tax to collect.
More detail
D.C. would set tax rates of 5% and 6%, alongside a separate 1% tax. The rates cover food and drinks prepared to eat or drink right away. The law would take effect after mayoral approval or a Council veto override and a 30-day congressional review. The 5% portion would apply from the effective date through September 30, 2026. The 6% portion would apply beginning October 1, 2027. The intervening year's rate is unclear.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 22Referred to Committee of the WholeLatest
- Jul 24Notice of Intent to Act on B26-0775 Published in the District of Columbia Register
- Jul 14B26-0775 Introduced by Councilmember Crawford at Office of the SecretaryIntroduced
Taxes & BudgetConsumer ProtectionEconomy & Jobs