District Of Columbia vs Tennessee
District of Columbia
Property‑Tax Comparison: District of Columbia vs. Tennessee
Overview
Both the District of Columbia (DC) and the state of Tennessee levy property taxes that fund local services such as schools, roads, and public safety. Using the most recent five‑year estimates from the U.S. Census Bureau’s 2023 American Community Survey (ACS), the two jurisdictions differ in median home values, effective tax rates, and resulting annual tax bills.
Side‑by‑side key metrics
| Metric | District of Columbia | Tennessee |
|---|---|---|
| Effective property‑tax rate | 0.58 % | 0.55 % |
| Median home value | $724,600 | $256,800 |
| Median annual property tax | $4,180 | $1,400 |
| Property tax on a $250,000 home | $1,442 | $1,363 |
| Property tax on a $500,000 home | $2,885 | $2,726 |
| Median household income | $106,287 | $67,097 |
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): Tennessee
- Effective‑rate difference: 0.03 percentage points (approximately a 5.49 % relative advantage for Tennessee).
Tax‑bill examples
| Home value | DC annual tax | TN annual tax | Difference (TN lower) |
|---|---|---|---|
| $250,000 | $1,442 | $1,363 | $79 |
| $500,000 | $2,885 | $2,726 | $159 |
Because Tennessee’s effective property‑tax rate (0.55 %) is slightly lower than DC’s (0.58 %), the state generates a modestly smaller yearly tax bill for identical property values. The difference widens as home value increases, reflecting the same rate gap applied to a larger tax base.
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Understanding how a change in residence could affect annual property‑tax costs, especially if considering moving between DC and Tennessee. |
| Prospective homebuyers | Evaluating the long‑term affordability of housing when the tax rate and median home values differ substantially. |
| Retirees | Many retirees prioritize low ongoing expenses; Tennessee’s lower tax rate and lower median home price may present a lower overall cost of living, though other factors (state income tax, sales tax, climate) also matter. |
| Real‑estate investors | The tax‑rate differential influences cash‑flow projections; a lower rate in Tennessee reduces the property‑tax component of operating expenses. |
| Policy analysts | The data illustrate how effective tax rates vary across jurisdictions with different home‑value distributions and income levels. |
Additional resources
- Detailed information on DC’s property‑tax system: District of Columbia property tax
- Detailed information on Tennessee’s property‑tax system: Tennessee property tax
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates) and reflect median values and effective rates as reported for each jurisdiction.
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.