Low Property Taxes
Colorado boasts some of the lowest residential property taxes in the United States, with an average effective rate of only 0.48%. This is significantly lower than the national average of 0.99%.
Key Facts
- Low Property Taxes: Colorado has some of the lowest residential property taxes in the country, with an average effective rate of just 0.48%.
- Calculation of Property Taxes: Residential property taxes in Colorado are based on the market value of the property and the total tax rates set by local taxing authorities, including counties, cities, school districts, and special taxing districts.
- Assessed Value: Tax rates in Colorado apply to the assessed value of the property, which is a fraction of the market value. The residential assessment rate, currently estimated at 7.15%, is used to calculate the assessed value.
- Changing Tax Rates: Tax rates in Colorado can change frequently as the revenue needs of taxing authorities shift. These rates are expressed in mills, which are equal to $1 for every $1,000 of property value.
- Effective Tax Rate: The effective tax rate is the amount a homeowner actually pays annually divided by the value of their property. For example, if a homeowner pays $1,500 in taxes annually and their home’s market value is $100,000, their effective tax rate is 1.5%.
Calculation of Property Taxes
Residential property taxes in Colorado are determined by two factors:
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Market Value of the Property
The market value is based on comparable sales of similar properties in the area.
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Tax Rates Set by Local Taxing Authorities
These authorities include counties, cities, school districts, and special taxing districts.
Assessed Value
Tax rates in Colorado are applied to the assessed value of the property, which is a fraction of the market value. The residential assessment rate, currently estimated at 7.15%, is used to calculate the assessed value.
Changing Tax Rates
Tax rates in Colorado are not fixed and can change frequently as the revenue needs of taxing authorities shift. These rates are expressed in mills, which are equal to $1 for every $1,000 of property value.
Effective Tax Rate
The effective tax rate is the amount a homeowner actually pays annually divided by the value of their property. For example, if a homeowner pays $1,500 in taxes annually and their home’s market value is $100,000, their effective tax rate is 1.5%.
Sources
- Colorado Property Tax Calculator
- Property Valuation and Taxation For Business and Industry In Colorado
- How Property Taxes are Calculated
FAQs
What is the average effective property tax rate in Colorado?
**Answer:** 0.48%
How are property taxes calculated in Colorado?
**Answer:** Property taxes are calculated by multiplying the market value of the property by the assessed value and then applying the tax rate set by local taxing authorities.
What is the assessed value of a property?
**Answer:** The assessed value is a fraction of the market value, currently estimated at 7.15% in Colorado.
Can property tax rates change in Colorado?
**Answer:** Yes, tax rates can change frequently as the revenue needs of taxing authorities shift.
What is the effective tax rate?
**Answer:** The effective tax rate is the amount a homeowner actually pays annually divided by the value of their property.
Are there any property tax exemptions in Colorado?
**Answer:** Yes, there are several property tax exemptions available in Colorado, including exemptions for senior citizens, veterans, and disabled individuals.
How can I protest my property tax assessment?
**Answer:** Homeowners who disagree with their property tax assessment can protest by contacting the county assessor.
When are property taxes due in Colorado?
**Answer:** Property taxes are typically due in January and reflect taxes owed for the previous year.