Connecticut vs Indiana
Property‑Tax Comparison: Connecticut vs. Indiana
Overview
Both Connecticut and Indiana levy property taxes to fund local services such as schools, police, and road maintenance. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Connecticut’s effective property‑tax rate is more than double that of Indiana. The difference in rates translates into substantially higher annual taxes for comparable home values in Connecticut.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Connecticut | Indiana |
|---|---|---|
| Effective property‑tax rate | 1.92 % | 0.74 % |
| Median home value | $343,200 | $201,600 |
| Median annual property tax | $6,575 | $1,496 |
| Property tax on a $250,000 home | $4,789 | $1,855 |
| Property tax on a $500,000 home | $9,579 | $3,711 |
| Median household income | $93,760 | $70,051 |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which State Has the Lower Tax Burden?
- Winner (lower effective rate): Indiana
- Rate difference: 1.92 % – 0.74 % = 1.18 percentage points (approximately a 61 % lower rate in Indiana).
- Annual tax difference for a $250,000 home: $4,789 – $1,855 = $2,934.
- Annual tax difference for a $500,000 home: $9,579 – $3,711 = $5,868.
Why Indiana scores lower
The effective property‑tax rate is the primary driver of the disparity. Even though Indiana’s median home values are lower than Connecticut’s, the tax rate alone reduces the absolute tax amount by more than half for identical property values. Consequently, homeowners paying the same price for a house would owe significantly less in Indiana.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners considering a move | Understanding the ongoing tax expense helps evaluate total cost of ownership. |
| Prospective homebuyers | Lower property taxes can affect affordability calculations, especially for buyers with tighter budgets. |
| Retirees on fixed incomes | Property‑tax savings may be a critical factor in choosing a state that aligns with limited cash flow. |
| Real‑estate investors | Tax differentials influence net‑operating income and long‑term return projections. |
| Policy analysts | The data illustrate how state‑level tax structures vary, useful for comparative fiscal studies. |
Additional Resources
- Detailed information on Connecticut’s property‑tax system: Connecticut property tax
- Detailed information on Indiana’s property‑tax system: Indiana property tax
Based on the most recent ACS estimates, Indiana’s lower effective property‑tax rate results in substantially lower annual tax liabilities for comparable home values, making it the lower‑tax option among the two states.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
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.