California vs Indiana
California
Property Tax Comparison: California vs. Indiana
Brief Overview
Both California and Indiana levy property taxes that fund local services such as schools, police, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), California’s effective property‑tax rate is slightly lower than Indiana’s, even though the Golden State’s median home values are more than three times higher. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and outline the types of residents for whom this information is most relevant.
Side‑by‑Side Comparison
| Metric (2023 ACS) | California | Indiana |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 0.74 % |
| Median home value | $695,400 | $201,600 |
| Median annual property tax | $4,926 | $1,496 |
| Property tax on a $250,000 home | $1,771 | $1,855 |
| Property tax on a $500,000 home | $3,542 | $3,711 |
| Median household income | $96,334 | $70,051 |
| Internal link (state‑specific) | California property tax | Indiana property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property‑Tax Rate?
Winner (lower rate): California
- Effective tax rate: California’s rate of 0.71 % is 0.03 percentage points lower than Indiana’s 0.74 %.
- Relative difference: This represents a 4.5 % lower rate when expressed as a proportion of Indiana’s rate (0.03 ÷ 0.66 ≈ 4.5 %).
- Annual tax impact on comparable homes:
- On a $250,000 home, California homeowners pay $84 less per year ($1,771 vs. $1,855).
- On a $500,000 home, the gap widens to $169 less per year ($3,542 vs. $3,711).
The lower effective rate in California means that, on a per‑dollar‑of‑home‑value basis, property taxes are modestly cheaper than in Indiana, even though the absolute dollar amounts are higher because California home values are substantially higher.
Who Is This Comparison Most Useful For?
| Audience | Why the Data Matters |
|---|---|
| Current homeowners | Understanding how much of their property‑value is allocated to taxes helps with budgeting and assessing the long‑term cost of staying in a given state. |
| Prospective homebuyers | Comparing effective rates and median tax amounts can influence decisions about where to purchase, especially when weighing home‑price affordability against tax burden. |
| Retirees and fixed‑income households | Property taxes are a recurring expense; a lower effective rate can reduce the overall financial strain, particularly if income is limited. |
| Real‑estate investors | Effective tax rates affect cash‑flow projections and the net return on rental or investment properties. |
| Policy analysts | The side‑by‑side data provide a concise snapshot for evaluating state‑level tax policy impacts relative to household income and home values. |
All of the above groups can rely on the ACS figures as a standardized, government‑collected source for comparing property‑tax environments across states.
Key Takeaways
- California’s effective property‑tax rate (0.71 %) is slightly lower than Indiana’s (0.74 %).
- The absolute tax amount paid is higher in California because median home values are far greater.
- For residents whose primary concern is the rate rather than the dollar amount—such as retirees on a fixed‑income or investors focusing on tax efficiency—California offers a marginal advantage.
- Conversely, individuals prioritizing lower total tax dollars may find Indiana more attractive, given the substantially lower median home price and median annual tax bill.
All statements above are based on the most recent ACS estimates from the U.S. Census Bureau.
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Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.