This research introduces the Municipal Digital Offering Index (MDOI) to assess municipal online service development in Chile. The study utilizes content analysis of municipal websites, creating a systematic instrument to evaluate digital services. It evaluates all 344 Chilean municipalities based on 163 dichotomous variables. Through factor analysis and regression modeling, it investigates sociodemographic and economic factors influencing digital development at the municipal level, offering insights into the digital divide across municipalities. The findings highlight geographical disparities and indicate priority intervention areas. While education levels and financial resources influence digital technology adoption, many municipalities lack efficient online procedures, prompting focused digital transformation investments. This research emphasizes the importance of localized digital services in bridging the digital divide and promoting inclusive governance.