District Of Columbia vs Minnesota
District of Columbia
Property Tax Comparison: District of Columbia vs. Minnesota
Based on the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Both the District of Columbia (DC) and the state of Minnesota levy property taxes that fund local services such as schools, public safety, and infrastructure. The two jurisdictions differ markedly in median home values, effective tax rates, and the resulting annual tax bills. Below is a side‑by‑side look at the key metrics.
Side‑by‑Side Metrics
| Metric | District of Columbia | Minnesota |
|---|---|---|
| Effective property tax rate | 0.58 % | 1.04 % |
| Median home value | $724,600 | $305,500 |
| Median annual property tax | $4,180 | $3,184 |
| Property tax on a $250,000 home | $1,442 | $2,606 |
| Property tax on a $500,000 home | $2,885 | $5,211 |
| Median household income | $106,287 | $87,556 |
| Data source | U.S. Census Bureau, 2023 ACS 5‑year | U.S. Census Bureau, 2023 ACS 5‑year |
Who Wins on Tax Burden?
The District of Columbia has the lower effective property tax rate (0.58 % vs. 1.04 %).
- Rate difference: 0.47 percentage points, which is a 44.65 % lower rate than Minnesota’s.
- Annual tax on a $250,000 home: DC is $1,164 cheaper ($1,442 vs. $2,606).
- Annual tax on a $500,000 home: DC is $2,326 cheaper ($2,885 vs. $5,211).
Because the tax rate is the primary driver of the property‑tax burden, DC “wins” in this comparison.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | The lower effective tax rate in DC means a smaller percentage of a home’s assessed value goes to property tax, which can affect affordability calculations. |
| Real‑estate investors | Understanding the tax differential helps assess cash‑flow expectations for properties of similar value in each market. |
| Retirees on fixed incomes | A lower tax rate can reduce the ongoing cost of homeownership, though retirees must also consider the higher median home price in DC. |
| Policy analysts | The contrast highlights how tax structures and home‑value levels interact to produce different median tax bills. |
Summary
According to U.S. Census Bureau data, the District of Columbia imposes a lower effective property tax rate than Minnesota, resulting in lower annual tax amounts for identical home values. However, the higher median home price in DC offsets some of the tax advantage when considering total housing costs. The comparison is most useful for individuals evaluating the relative tax burden of homeownership in these two jurisdictions.
Further reading
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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.