How Much Are Real Estate Taxes Per Year in Colorado: A Comprehensive Guide

Curious about real estate taxes in Colorado? Read on to discover how much you can expect to pay per year and gain insights into the factors that influence these taxes.

Introduction

If you're considering purchasing a property in Colorado or are a current homeowner, understanding the cost of real estate taxes is essential for effective financial planning. Real estate taxes play a significant role in funding local government services such as schools, infrastructure, and public safety. In this article, we will explore how much real estate taxes are per year in Colorado and shed light on the factors that contribute to these costs.

Understanding Real Estate Taxes in Colorado

Real estate taxes, also known as property taxes, are imposed on property owners by local governments. These taxes are calculated based on the assessed value of the property and help fund various public services. In Colorado, real estate taxes are levied at the county level, with rates varying across different areas.

Factors Influencing Real Estate Taxes in Colorado

a. Property Valuation The assessed value of your property is a crucial factor in determining your real estate taxes. Assessors evaluate the market value of your property, taking into account factors such as location, size

Colorado Property Tax Rates Rates are expressed in mills, which are equal to $1 for every $1,000 of property value. A tax of 10 mills on a property with an assessed value of $10,000 is equal to $100 ($10,000 x 0.1). An effective tax rate is the amount you actually pay annually divided by the value of your property.

Table of Contents

What is Colorado property tax rate for 2023?

It will go to 6.765% for tax year 2023 along with the first $15,000 in actual value being exempted. The 2024 tax year rate is UNKNOWN at this time as it will be calculated by the Colorado Division of Property Taxation.

What is the average real estate tax in Denver Colorado?

In Denver, the property tax rate for the year 2021 was 0.57%. This means that for every $100,000 of taxable property value, the property owner would pay $570 in property taxes.

What is the property tax limit in Colorado?

The 5.5% Limit applies to most statutory local governments that levy for property taxes. It does not apply to home-rule municipalities. The limit also does not apply to local governments that have successfully held a vote to waive the limit. (View a list of waived local governments(opens in new window).)

Why are property taxes so cheap in Colorado?

Colorado by the numbers What makes that low tax rate possible is the fact that property tax rates in Colorado do not apply to market value. They are applied to the assessed value, which is called the residential assessment rate, and the assessed value is just a fraction of the market value of your home.

What is the property tax rate in Colorado?

6.765% For property that is classified as single family residential, the current assessment rate is 6.765% of market value. The assessment rates for most other types of property are listed under the 2023 Assessment Rates chart.

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— Thomas Frank (@TomFrankly) July 16, 2023

Is Colorado property tax based on purchase price?

Tax rates in Colorado do not apply to market value, but rather to assessed value, which is equal to a fraction of the market value. That fraction, which is called the residential assessment rate, is recalculated regularly by the state. As of now, the state estimates it to be 7.15%.

Frequently Asked Questions

How property taxes work in Colorado?

Property taxes are determined by multiplying a property's assessed value by the millage or mill rate. Mill rates are set in December of each year by the various taxing authorities (City and County of Denver, Denver Public Schools, and any special districts).

Why did Colorado Springs property taxes go up?

Homes across most of Colorado saw a significant increase in value when county governments completed a reassessment in 2023. Higher values generally means higher taxes.

Is Colorado a high tax state?

Colorado also has a 2.90 percent state sales tax rate, a max local sales tax rate of 8.30 percent, and an average combined state and local sales tax rate of 7.78 percent. Colorado's tax system ranks 27th overall on our 2024 State Business Tax Climate Index.

How is property tax calculated in Colorado Springs?

Property taxes in Colorado are calculated by multiplying the statewide assessment rate by the value of a home — sometimes referred to as a market value — as determined by a county assessor. That number is then multiplied by the local mill levy rate. (A mill is a $1 payment on every $1,000 of assessed value.

FAQ

Are Colorado Springs taxes high?: The minimum combined 2023 sales tax rate for Colorado Springs, Colorado is 8.2%. This is the total of state, county and city sales tax rates. The Colorado sales tax rate is currently 2.9%. The County sales tax rate is 1.23%.
How much is property tax per year in Colorado?: Usually, the Colorado assessment rate is set at 7.15%. The current assessment value ratio for single-family real estate for the 2023 tax year was 6.765%. This means you'll pay property taxes on 6.7615% of your home's value. A $500,000 valued home will pay taxes on $33,825.
What is the property tax rate in Colorado 2023?: 6.765% It will go to 6.765% for tax year 2023 along with the first $15,000 in actual value being exempted. The 2024 tax year rate is UNKNOWN at this time as it will be calculated by the Colorado Division of Property Taxation.