Before you start

An SSN or ITIN
Form W-4 with your employer for federal withholding
DC Form D-4 (or the Maryland or Virginia equivalent) for local withholding
Records of foreign income and foreign financial accounts

Step-by-step

1
Complete the W-4 and your jurisdiction's withholding form
DC uses Form D-4. If you live in Maryland or Virginia but work in DC, file the non-residence certificate so DC does not withhold — reciprocity means you pay where you live, but only if the paperwork is right.
Via employerWho: YouFirst week of employment
2
Compare the three jurisdictions before signing a lease
Model your actual salary against DC, Virginia and Maryland rates, and include Virginia's annual car tax and Maryland's county income tax. For a high earner the gap between DC and Virginia can be several thousand dollars a year.
OnlineWho: You
3
Determine your US tax residency
The substantial presence test counts weighted days over three years. Note that A and G visa holders are exempt individuals for this purpose in many circumstances, which changes the calculation entirely.
OnlineWho: You
4
If you are on G-4, understand your exemption's limits
International organisation salary is generally exempt from US income tax for G-4 staff, but that does not cover a spouse's separate US earnings, investment income, or capital gains. Filing is often still required. Your organisation's tax office is the right first stop.
Via employerWho: You
5
File federal and local returns by 15 April
The tax year is the calendar year. An extension moves the filing date, not the payment date.
OnlineWho: YouBy 15 April annually
6
File an FBAR if foreign accounts exceed $10,000
Aggregate foreign account balances over $10,000 at any point in the year trigger a FinCEN filing, separate from your tax return. In a city this international it is very commonly missed.
OnlineWho: You

Documents you’ll need

Form W-2 from each employer, issued by 31 January
Form 1099s for freelance, interest and investment income
Organisation statements, for G-4 and A-visa holders
Passport and travel history for the substantial presence day count
Foreign account statements for FBAR reporting

Things most newcomers don’t know

DC residents pay full federal tax with no voting representation in Congress.

It is on the licence plates for a reason. The District has a non-voting delegate in the House and no senators, while its residents pay federal income tax at the same rates as everyone else and, per capita, among the highest federal tax in the country. Whatever you make of it politically, it is the defining civic fact of living here.

Source: DC Office of Tax and Revenue

Where you sleep decides your income tax bill, not where you work.

DC has reciprocity with Maryland and Virginia, so you pay the jurisdiction you live in. DC tops out at 10.75%, Virginia at 5.75%, Maryland at 6.5% since its 2025 budget act plus a county surcharge capped at 3.3%. A Metro stop across the Potomac can be worth several thousand dollars annually — which is why Arlington and Bethesda are full of people who work downtown.

Source: DC Office of Tax and Revenue

G-4 exemption covers the organisation salary and nothing else.

Staff of international organisations are generally exempt from US income tax on their organisation pay. That exemption does not extend to a spouse's US employment, rental income, or investment gains — all of which are taxable normally, and all of which still require a return. This is the most common tax mistake in DC's international community.

Source: IRS — foreign government and international organisation employees

Virginia's annual car tax offsets some of its income tax advantage.

Virginia localities levy a personal property tax on vehicles each year based on value, running into hundreds of dollars for a newer car. It is a real cost that never appears in a simple income-tax comparison of the three jurisdictions.

Source: Virginia Department of Taxation

Common mistakes to avoid

Signing a DC lease without modelling the Virginia and Maryland position first.
Failing to file the non-residence certificate and having the wrong jurisdiction withhold all year.
Assuming a G-4 exemption covers a spouse's earnings or investment income.
Comparing jurisdictions on income tax alone, ignoring Virginia's car tax and Maryland's county tax.
Missing the FBAR — very commonly overlooked in DC's international community.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.

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