District Measured recently analyzed the Office of Revenue Analysis (ORA) report, Tax Rates and Tax Burdens 2014: A Nationwide Comparison, which takes a look at property, sales, auto, and income taxes in DC and other large cities.
Although surveys will often compare DC data to that of other states, the ORA’s study opted to look at data from each of the fifty states’ largest cities in combination with applicable state data to create a more comprehensive representation. The data is broken down for a hypothetical family of three in five income brackets — $25,000, $50,000, $75,000, $100,000, and $150,000. After removing the auto tax variable, UrbanTurf found that the overall combined tax burden as a percentage of income for each DC family in the report is 12.5 percent — one of the lowest tax burdens in the country.
District homeowners pay property taxes at a rate of $0.85 per $100 in assessed property value, while the nationwide median and average are $1.40 and $1.56 per $100, respectively. A homestead exemption of $70,200 coupled with the aforementioned rate put DC’s property tax burden below the 51-city average for all but the lowest income level analyzed. (The family making $25,000 annually is assumed to be renting.) Income taxes are a murkier subject, as the tax rates for $50-, $75-, $100- and $150,000 annual incomes are higher than in most of the country — and skew high particularly for those who make $50,000 or $150,000. Nine states either have no income tax or have enough exemptions to effectively nullify all individual income taxes.
DC has the largest city-levied sales tax amongst all the cities surveyed. However, because there are no state, county, school district or transit district sales tax rates, the overall sales tax burden in DC is one of the smallest in the nation.
To read the full post, click here.
This article originally published at http://dc.urbanturf.com/articles/blog/d.c._has_one_of_the_lowest_tax_burdens_nationwide/10845
Most Popular... This Week • Last 30 Days • Ever
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
Loan recasting is a growing practice- so what is it?... read »
The project would replace a concrete plant and would deliver the neighborhood's first... read »
The 25-acre array will produce a quarter of the university's current annual energy co... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The 12,000 square foot replica of 1600 Pennsylvania Avenue went under contract last w... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro