District of Columbia
The District of Columbia Exempts Poor Families from the Income Tax But Has a High Tax on the Near-Poor
The District of Columbias 1999 income tax threshold the income level at which families begin paying income tax: Ranking among 42 states with income taxes
For two-parent families of four: $18,200. 20th highest (tie)
For single-parent families of three: $14,600. 19th highest (tie)
The District of Columbias 1999 income tax on working-poor and near-poor families:No tax on families with incomes at the poverty line ($17,028 for family of four, $13,290 for family of three). No tax on families of three or four with full-time minimum-wage earnings ($12,792).
For families of three with incomes at 125% of the poverty line ($16,613): $548. 2nd highest
For families of four with incomes at 125% of the poverty line ($21,285): $906. Highest
The District of Columbia has consistently exempted families with below-poverty earnings from the income tax.The District of Columbias tax threshold has risen in step with the poverty line in the 1990s.
The District of Columbia has an unusual low-income credit that eliminates tax liability for families with incomes up to the threshold but leaves families with incomes just above the threshold with substantial tax liability.