(Washington, DC) — There’s a new study out that may contradict what you think you know about just how much District residents get taxed by their government. The DC Fiscal Policy Institute looked at the combined income and property taxes that residents of DC pay, versus what the residents of Arlington, Fairfax, Montgomery, and Prince George’s Counties pay, and found out that it’s the residents of the city who pay the least. The report’s author, Aleksandra Gajdeczka [[ GUY’-detch-kuh ]] says the city’s relatively low property tax rates are the reason the overall family tax bills are the lowest. Montgomery County’s combined income and property tax rate is second lowest in the area, while Prince George’s County families pay the highest combined rates. The study looked at the income tax rates for families earning 50, 100, and 200-thousand dollars, while assessing property taxes by using actual property tax bills. The report suggests city officials can raise taxes to help with the looming budget deficit, but another study also suggests tax hikes should be focused on upper income residents in the District.
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