Updated September 5, 2026. Quick answer: Washington DC currently taxes public, private, federal, and military pensions, plus IRA and 401(k) distributions, fully as ordinary income, with no general retirement exclusion in effect. A $3,000 exclusion that once applied to DC and federal government pensions and military retired pay for people 62 and older expired for tax years beginning in 2015 and was never restored, though DC still excludes Social Security and Tier 1 Railroad Retirement benefits from gross income entirely.
The police officers and firefighters retirement plan, with its refund and survivor rules from its own plan description: DC police and firefighters retirement decisions.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Washington, DC tax withholding on pension payments.
Selling your home? How the state taxes the profit, from its own tax documents: Does Washington, DC tax the profit from selling your home?.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Washington, DC tax withholding on IRA and 401(k) withdrawals.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Washington, D.C. have an inheritance tax?.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does District of Columbia have a gift tax?.
Saving for a child’s college? The state’s 529 break has its own page: Washington DC 529 plan tax deduction.
Withdrawals from a 401(k) or IRA have their own page: does Washington, D.C. tax 401(k) and IRA withdrawals.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Washington DC taxes retirement income generally.
Pending, not current law: A 2021 bill, the Pension Exclusion Restoration and Expansion Act (B24-0071), would have restored and expanded a pension and military retirement exclusion of up to $10,000 or $20,000 depending on the filer’s age, but whether it was enacted could not be confirmed from a primary source this session, so DC pension income should be treated as fully taxable under current law.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | DC and other government pension income is fully included in DC gross income and taxed as ordinary income. An exception exists for survivor benefits: a survivor (not the original retiree) who is 62 or older and receives DC or federal government pension, military retired pay, or annuity survivor benefits can exclude that income with no dollar cap under D.C. Code sec. 47-1803.02(a)(2)(N)(ii). |
|---|---|
| Private (employer) pensions | Private employer pension income is fully taxable as ordinary income, with no DC-specific exclusion currently in effect. |
| Federal government pensions (FERS/CSRS) | Federal government pension income received by the retiree is fully taxable as ordinary income. The former $3,000 exclusion for DC and federal government pensions received by people 62 or older applied only to taxable years beginning before January 1, 2015, and does not apply currently. |
| Military retirement pay | Military retired pay received by the retiree is fully taxable as ordinary income under current law. The $3,000 exclusion for recipients 62 or older expired after tax year 2014, and a 2021 bill, the Pension Exclusion Restoration and Expansion Act (B24-0071), which would have restored and expanded this exclusion, could not be confirmed as enacted from a primary source this session. |
| IRA and 401(k)/403(b) distributions | IRA and 401(k) distributions are fully taxable as ordinary income, with no DC-specific exclusion identified in the current code. |
| General retirement-income exclusion | DC has no general age-based retirement income exclusion in effect. Two narrower, unrelated provisions exist: an uncapped exclusion for DC or federal government pension and military retired pay survivor benefits received by someone 62 or older, and a separate $10,000 exclusion for income received by a person certified permanently and totally disabled by the Social Security Administration (or receiving SSI, Social Security Disability, railroad retirement disability, or federal/DC government disability payments) whose household AGI is under $100,000. |
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DC excludes Social Security benefits and Tier 1 Railroad Retirement benefits from gross income entirely under D.C. Code sec. 47-1803.02(a)(2)(L). Social Security has its own rules in every state; see the full breakdown in how Washington DC taxes retirement income generally.
Figures verified against D.C. Code sec. 47-1803.02 (D.C. Law Library) on September 30, 2026; the enactment status of bill B24-0071 was not re-checked.
Statute and sources
Governing citation: D.C. Code sec. 47-1803.02(a)(2).
Read September 5, 2026.
Related: how Washington DC taxes retirement income generally · does Washington DC tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.