California vs South Dakota
California
Property‑Tax Comparison: California vs. South Dakota
Intro
Both California and South Dakota levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), the two states differ substantially in effective tax rates, home values, and median household incomes. The following sections present a side‑by‑side comparison of the key metrics, identify which state has the lower property‑tax burden, and discuss the types of residents for whom the information is most relevant.
Side‑by‑Side Comparison
| Metric | California | South Dakota |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 1.09 % |
| Median home value | $695,400 | $236,800 |
| Median annual property tax | $4,926 | $2,590 |
| Tax on a $250,000 home | $1,771 | $2,735 |
| Tax on a $500,000 home | $3,542 | $5,469 |
| Median household income | $96,334 | $72,421 |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which State Wins on Property‑Tax Rate?
California has the lower effective property‑tax rate at 0.71 %, compared with 1.09 % in South Dakota.
- Rate difference: 0.39 percentage points, which is a 35.23 % lower rate in California.
- Annual tax difference on a $250,000 home: $964 less in California.
- Annual tax difference on a $500,000 home: $1,927 less in California.
Because the comparison is based on the effective tax rate (tax paid divided by assessed value), California is the winner in terms of a lower property‑tax burden.
Who Is This Comparison Most Useful For?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Knowing the effective tax rate helps estimate ongoing housing costs. California’s lower rate may offset its higher median home values for some buyers. |
| Retirees and fixed‑income households | Property‑tax rates directly affect disposable income. While California’s rate is lower, the higher home values can lead to larger tax bills in absolute terms; South Dakota’s lower home values may result in smaller overall payments despite the higher rate. |
| Real‑estate investors | Effective tax rates influence cash‑flow calculations. The rate differential of 0.39 % can be material when modeling long‑term returns. |
| Policy analysts and researchers | The table provides a concise snapshot of fiscal differences that can be used in broader state‑level tax policy comparisons. |
Additional Context
- Home‑value disparity: California’s median home value ($695,400) is roughly three times that of South Dakota ($236,800). Consequently, even with a lower rate, the median annual property tax in California ($4,926) exceeds South Dakota’s median ($2,590).
- Income considerations: Median household income is higher in California ($96,334) than in South Dakota ($72,421). The higher income may mitigate the impact of larger absolute tax payments for some households.
For more detailed information on each state’s property‑tax system, see the dedicated pages: California property tax and South Dakota property tax.
Summary
Based on the most recent ACS estimates, California offers a lower effective property‑tax rate than South Dakota, resulting in a lower percentage‑based tax burden. However, the absolute tax paid is influenced by median home values and household incomes, which differ markedly between the two states. Stakeholders—homebuyers, retirees, investors, and analysts—should weigh both rate and value factors when assessing overall property‑tax costs.
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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.