The Office of Revenue Analysis annually compares DC’s tax burdens to those of the largest city in each state. Looking at the combined burden of all four taxes by income level, DC tax burdens were lower than the average of the other 51 jurisdictions for families earning $50,000, $75,000, $100,000 or $150,000 a year. For the lowest income family earning $25,000, the District’s overall burden was higher than the average across the 51 cities. At the lowest income level, DC’s lower than average income tax burden (with the family receiving an Earned Income Tax Credit refund) is offset by the high cost of rent, and the resulting high burden of the property tax implicitly included in rental prices.
The map below presents the combined tax burdens (as a % of income) of all four tax types added together for a family earning $25,000 a year.