District Of Columbia vs New Jersey

Property‑Tax Comparison: District of Columbia vs. New Jersey

Overview
Both the District of Columbia (DC) and New Jersey levy property taxes that fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), DC’s effective property‑tax rate is markedly lower than New Jersey’s. The following sections present the key metrics side‑by‑side, identify which jurisdiction has the lower rate, and indicate which types of residents are most affected by the difference.

Side‑by‑Side Metrics

Metric	District of Columbia	New Jersey
Effective property‑tax rate	0.58 %	2.23 %
Median home value	$724,600	$427,600
Median annual property tax	$4,180	$9,541
Property tax on a $250,000 home	$1,442	$5,578
Property tax on a $500,000 home	$2,885	$11,157
Median household income	$106,287	$101,050
Link to detailed page	District of Columbia property tax	New Jersey property tax

All figures are taken from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).

Which Jurisdiction “Wins” on Property Tax?

Winner (lower tax rate): District of Columbia

Rate difference: 2.23 % – 0.58 % = 1.65 percentage points.
Relative difference: (1.65 ÷ 0.58) ≈ 284 % higher in New Jersey, which translates to a 74.15 % greater effective rate compared with DC.
Annual tax gap on a $250,000 home: $5,578 – $1,442 = $4,136.
Annual tax gap on a $500,000 home: $11,157 – $2,885 = $8,272.

Because the effective rate is the primary driver of the tax burden, DC’s lower rate results in substantially smaller yearly payments for comparable property values.

Who Is This Comparison Most Relevant For?

Audience	Relevance
Current or prospective homeowners	The effective rate and dollar amounts directly affect monthly mortgage budgeting and long‑term affordability.
Retirees or fixed‑income households	Lower annual property taxes can reduce the cost of maintaining home ownership on a limited income.
Real‑estate investors	Tax differentials influence net‑operating income and return‑on‑investment calculations.
Policy analysts or local‑government officials	The data illustrate how tax structures differ across jurisdictions with comparable median incomes.

All groups can use the figures to compare the fiscal impact of owning a home in DC versus New Jersey, independent of other cost‑of‑living factors.

Summary

Based on the most recent ACS estimates, the District of Columbia imposes an effective property‑tax rate of 0.58 %, which is 1.65 percentage points (about 74 %) lower than New Jersey’s 2.23 % rate. Consequently, annual taxes on typical home values are roughly $4,000–$8,000 lower in DC. Homeowners, retirees, and investors looking to minimize property‑tax expenses would find the DC market comparatively less burdensome, while the higher taxes in New Jersey may reflect the state’s broader funding needs for public services.

District Of Columbia vs New Jersey