DoorWorthy

Who needs a combined business tax registration (FR-500): sales and use tax, withholding in District of Columbia?

Issued by Office of Tax and Revenue (OTR), at step 2 of 6 in the opening sequence: register for tax.

Every kind of business in District of Columbia

The District of Columbia table lists this for every kind of business.

Register online before the first sale or the first hire; OTR issues a certificate of registration for each location, and it must be displayed. The general sales tax rate is 6% (a scheduled increase to 7% has been pushed back to October 1, 2027), and restaurant meals and drinks for on-premises consumption are taxed at 10%. The Certificate of Clean Hands that the business license and liquor license ask for comes from the same OTR account.

Checked Oct 21, 2026 against the agency’s page.

Step 2 of 6: Register for tax

  1. Set up the business
  2. Register for tax
  3. Approve the space
  4. Get the permits for your kind of business
  5. Alcohol permits
  6. Before the first hire

Issued by Office of Tax and Revenue (OTR).

Sources and dates

Office of Tax and Revenue FR-500 registration instructions and sales and use tax pages. Checked against the agency’s page on the date shown; cities add their own fees.

Questions about opening here.