District Of Columbia vs Indiana

Property‑Tax Comparison: District of Columbia vs. Indiana

Introduction
Both the District of Columbia (DC) and the state of Indiana levy property taxes that fund local services such as schools, public safety, and infrastructure. Using the most recent data from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), the two jurisdictions differ markedly in median home values, effective tax rates, and the resulting tax bills. The table below presents the key metrics side by side.

Side‑by‑Side Metrics

Metric (2023 ACS)	District of Columbia	Indiana
Effective property‑tax rate	0.58 %	0.74 %
Median home value	$724,600	$201,600
Median annual property tax	$4,180	$1,496
Tax on a $250,000 home	$1,442	$1,855
Tax on a $500,000 home	$2,885	$3,711
Median household income	$106,287	$70,051

Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).

Which jurisdiction has the lower tax burden?

Winner (lower effective rate): District of Columbia

Rate difference: 0.74 % – 0.58 % = 0.16 % (rounded to 0.17 % in the original comparison).
Percentage difference: 0.17 % ÷ 0.74 % ≈ 22.3 % lower rate in DC.
Annual tax difference on a $250 k home: $1,855 – $1,442 = $413.
Annual tax difference on a $500 k home: $3,711 – $2,885 = $826.

Because the effective property‑tax rate is the primary driver of the tax bill, DC’s lower rate translates into smaller annual payments for homes of any value, despite its higher median home price.

For more detail on the DC system, see the article on District of Columbia property tax. For Indiana, refer to Indiana property tax.

Who is most affected by this comparison?

Audience	Relevance of the comparison
Current homeowners	Homeowners who already own property in either jurisdiction can compare their current tax burden with the alternative location. The lower effective rate in DC means a smaller proportion of home value is taxed.
Prospective homebuyers	Buyers evaluating where to purchase a primary residence can use the rate and median‑tax figures to estimate ongoing costs. The difference is especially notable for homes valued around $250 k–$500 k.
Retirees and fixed‑income households	Because property taxes are a recurring expense, retirees may prefer the lower effective rate in DC, though the higher median home price could offset the savings in total cost of ownership.
Real‑estate investors	Investors assessing cash‑flow projections will see lower tax expense percentages in DC, which can improve net operating income on comparable properties.
Policy analysts	The data illustrate how tax‑rate structures vary between a densely populated urban district and a largely rural/mid‑western state, useful for comparative fiscal studies.

All observations are based on factual ACS data; no subjective judgments about quality of life or services are included.

Summary

Based on the U.S. Census Bureau’s 2023 ACS estimates, the District of Columbia imposes a lower effective property‑tax rate (0.58 %) than Indiana (0.74 %). This rate difference yields $413–$826 lower annual taxes for homes priced at $250 k and $500 k, respectively. The comparison is most useful for homeowners, prospective buyers, retirees, and investors who need to estimate ongoing property‑tax costs across these two jurisdictions.

District Of Columbia vs Indiana