District Of Columbia vs Texas
District of Columbia
Property Tax Comparison: District of Columbia vs. Texas
Summary – Using the most recent 2023 American Community Survey (ACS) 5‑year estimates from the U.S. Census Bureau, the District of Columbia (DC) has a substantially lower effective property‑tax rate than Texas, even though median home values in DC are considerably higher. The difference in rates translates into lower annual taxes for comparable‑price homes in DC, while the overall tax burden is moderated by higher household incomes in the district.
Side‑by‑Side Metrics
| Metric | District of Columbia | Texas |
|---|---|---|
| Effective property‑tax rate | 0.58 % | 1.58 % |
| Median home value | $724,600 | $260,400 |
| Median annual property tax | $4,180 | $4,111 |
| Tax on a $250,000 home | $1,442 | $3,947 |
| Tax on a $500,000 home | $2,885 | $7,893 |
| Median household income | $106,287 | $76,292 |
All figures are from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Who Wins on Property‑Tax Rate?
- Winner (lower rate): District of Columbia
- Rate difference: 1.00 percentage point, which is a 63.46 % lower effective rate in DC than in Texas.
- Annual tax difference for a $250 k home: $2,505 less in DC.
- Annual tax difference for a $500 k home: $5,008 less in DC.
Why DC wins: The effective property‑tax rate of 0.58 % in DC is roughly one‑third of Texas’s 1.58 %. Even though DC’s median home price is nearly three times higher, the lower rate results in comparable or lower median annual tax amounts ($4,180 vs. $4,111) and substantially lower taxes on specific price points ($250 k and $500 k).
For more detailed information on each jurisdiction’s tax structure, see the internal pages: District of Columbia property tax and Texas property tax.
Who Might Benefit from This Comparison?
| Audience | Relevance of DC vs. Texas Property‑Tax Data |
|---|---|
| Current homeowners | Homeowners assessing the cost of relocating can use the effective tax rates to estimate future property‑tax obligations. |
| Prospective buyers | Buyers comparing affordability across markets can factor in both home‑price levels and tax rates. |
| Retirees | Retirees on fixed incomes often prioritize lower recurring expenses; the lower DC rate may offset higher home values, while Texas offers lower median home prices but higher taxes. |
| Real‑estate investors | Investors can evaluate the tax impact on cash‑flow projections for properties at different price points. |
| Policy analysts | The contrast illustrates how tax policy and home‑value trends interact to shape overall tax burdens. |
All observations are based on the latest ACS data and do not incorporate other taxes (e.g., state income tax, sales tax) or local exemptions that may affect an individual’s total tax liability.
Conclusion
According to U.S. Census Bureau data, the District of Columbia provides a lower effective property‑tax rate than Texas, resulting in lower annual taxes for comparable‑price homes despite higher median home values. Stakeholders such as homeowners, retirees, and investors should weigh both the tax rate and home‑value environment when comparing the two jurisdictions.
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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.