District Of Columbia vs South Dakota
District of Columbia
Property‑Tax Comparison: District of Columbia vs. South Dakota
Brief Overview
Both the District of Columbia (the nation’s capital) and the state of South Dakota collect property taxes to fund local services, but the rate at which they tax property differs substantially. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), the District of Columbia’s effective property‑tax rate is 0.58 %, whereas South Dakota’s is 1.09 %. The lower rate in the District of Columbia translates into lower annual taxes for comparable home values, even though the median home price is considerably higher there.
Side‑by‑Side Metrics
| Metric (2023 ACS) | District of Columbia | South Dakota |
|---|---|---|
| Effective property‑tax rate | 0.58 % | 1.09 % |
| Median home value | $724,600 | $236,800 |
| Median annual property tax | $4,180 | $2,590 |
| Annual tax on a $250,000 home | $1,442 | $2,735 |
| Annual tax on a $500,000 home | $2,885 | $5,469 |
| Median household income | $106,287 | $72,421 |
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 property‑tax rate): District of Columbia
- Rate difference: 0.52 percentage points, which is a 47.26 % lower effective rate than South Dakota’s.
- Tax difference for a $250 k home: $2,735 – $1,442 = $1,293 less per year in the District of Columbia.
- Tax difference for a $500 k home: $5,469 – $2,885 = $2,584 less per year in the District of Columbia.
The lower effective rate means that, for any given property value, owners in the District of Columbia pay less in property tax than owners in South Dakota. This holds true despite the District’s higher median home price and higher median household income.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Understanding how property‑tax rates affect annual housing costs helps in budgeting and comparing affordability across locations. |
| Retirees and fixed‑income households | Lower tax rates can reduce the ongoing cash‑flow burden, especially for those on limited incomes. |
| Real‑estate investors | Effective tax rates influence net‑rental yields and overall return on investment. |
| Policy analysts | The contrast illustrates how tax policy varies between a densely populated federal district and a largely rural state. |
The comparison is purely quantitative; it does not consider other cost‑of‑living factors, public‑service quality, or state‑level taxes that may also affect overall affordability.
Additional Resources
- Detailed information on the District of Columbia’s property‑tax structure: District of Columbia property tax
- Detailed information on South Dakota’s property‑tax structure: South Dakota property tax
Based on the most recent ACS estimates, the figures above provide a factual snapshot of property‑tax burdens in the two jurisdictions.
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.