Property Taxes in Colorado
Colorado property taxes add to the cost of owning a home, whether you live in it or rent it out to tenants. These unavoidable annual costs will influence your budget and long-term planning, so understanding how they fit into your financial picture is essential.
Nobody likes to pay them, but these taxes fund the services your community counts on: schools, fire departments, roadwork, local programs, and more. While you may dread the inevitable bill, these services help fund the county’s needs.
This guide explains how local governments calculate property taxes, when and how often you pay them, what they fund, how assessments and exemptions work, and what steps you can take to lower your bill.
Colorado Lease Agreements
Learn MoreTurboTenant's Colorado lease agreement forms the backbone of a solid landlord-tenant relationship.
Colorado Rental Application
Learn MoreSend and receive legally sound Colorado rental applications for free.
Colorado Landlord-Tenant Law: Overview of Rights 2024
Learn MoreColorado landlord-tenant law stipulates the legal responsibilities of landlords and tenants in the Centennial State. We cover those laws here.
Calculating Property Taxes in Colorado
In Colorado, property taxes depend on your home’s assessed value and the local mill levy. The mill levy is the tax rate charged per $1,000 of assessed value.
Colorado property tax rate = (Assessed value / 1,000) × mill levy
County assessors set your property’s market value and multiply it by the assessment rate (currently 6.7% for most homes). They then reassess every 2 years, so changes in the market or home improvements will most likely affect your tax bill.
New and recent laws: Colorado passed major property tax changes in 2024 to lower homeowner bills and control public spending. Senate Bill 24-233 cut residential assessment rates to 6.25% and limited local revenue increases to 5.5%. Senior citizens also gained expanded exemptions and tax deferral programs.
National comparison: Colorado’s property tax rates rank among the lowest nationwide. In 2024, the average effective rate was 0.50%, slightly above Utah’s 0.47% and below New Mexico’s 0.61%.
County/Municipality-Specific Rates
Colorado property taxes vary by county and are determined by local budgets, services offered, population, and other important factors. Rates can change significantly from one area to the next, even between towns that sit right next to each other.
Denver County: 0.55% — Slightly above Colorado’s average. As the state capital, Denver’s taxes reflect the costs of running a busy city, including road maintenance, public transit, and essential city services.
El Paso County: 0.49% — Just under the state average. Anchored by Colorado Springs, this county is dominated by suburban and military communities..
Arapahoe County: 0.52% — A touch higher than average, Arapahoe County includes quieter suburban cities like Centennial and busier urban and commercial areas like Aurora.
Jefferson County: 0.50% — Matches the Colorado average. Homeowners here see a balanced property tax rate, typical for Denver suburbs like Lakewood, Golden, and Arvada.
Boulder County: 0.54% — Above the state average. Known for Boulder and Longmont, residents pay a slight premium for schools, community amenities, and conservation programs.
Reassessments and Increases
Reassessment frequency: Colorado counties reassess property values every 2 years (always during odd-numbered years). If you build an addition or make major improvements to your property, the county assessor will update your property’s value outside the regular cycle.
Renovations and improvements: In Colorado, significant renovations like finished basements, new rooms, or ADUs can trigger reassessments. Under C.R.S. § 39-1-104(11)(b)(I), these count as “unusual conditions” and could prompt assessors to reassess your property early.
Reassessment impact: When counties reassess your property after major projects, expect your taxes to rise. If assessors mark improvements as “unusual conditions,” they’ll update valuations sooner. Always consider the potential financial impact before starting significant home upgrades.
Reducing Taxes and Exemptions
Colorado property owners have several ways to reduce their property tax bills. A few options include appealing if the county valued your property too highly, fixing errors in your assessment records, or claiming exemptions you qualify for.
Appeals: If the county assessor overvalued your property, you can file an appeal with your local government. The deadline is June 8th, or the date shown on your Notice of Valuation, whichever comes later. Each county handles appeals differently, so reference your local guidelines for more details.
Colorado also offers several property tax exemptions that can reduce your bill:
Senior citizen: Seniors 65 or older who meet income guidelines qualify for a $50,000 exemption on their home’s assessed value.
Disabled veteran: Veterans with a 100% permanent and service-connected disability qualify for an exemption on their primary residence, which typically removes 50% of the first $200,000 of the home’s actual value from taxation.
Gold Star spouse: Surviving spouses of military members killed in action can qualify for a tax exemption on their main home. To be eligible, the spouse must remain unmarried and occupy the home as their primary residence.
Nonprofit organization: Nonprofits like schools, churches, and charities can avoid paying property taxes if they use the property only for their core mission. To qualify, they must prove that the property supports their educational or charitable work and nothing else.
Property Tax Deductions
Tax deductions: Colorado landlords can write off property taxes on rental homes as a business expense. They can also deduct other costs like insurance, repairs, and depreciation, lowering their tax burden.
Forms: Landlords report rental income and deductions using IRS Schedule E (Form 1040). If you provide extra services to your tenants and run your rental like a business, you might need to fill out a Schedule C instead.
How Often You Pay Taxes
Payment frequency: Colorado property taxes usually come due in two parts each year. If you miss a payment, you’ll start accruing interest and penalties set by local governments.
Due dates: In Colorado, the first half of your property taxes are due by February 28th, while the second half is due by June 15th. If your total bill is under $50, Colorado requires that you pay in full by February 28th.
Late payments: Local governments will assess interest at 1% per month if you miss a Colorado property tax deadline. Nonresidential or multifamily properties will get hit with an extra 10% penalty if their balance remains unpaid by December 1.
How to pay: Colorado property owners typically make payments through their county treasurer’s office. Most counties will let you pay online, by mail, in person, or through a secure drop box outside their official offices.
What do property taxes pay for in Colorado?
Property taxes in Colorado keep your community running strong by funding public infrastructure, local schools, safety services, community programs, and more. Here are a few typical ways your property taxes go to work for you:
Education: Colorado property taxes help pay for schools, covering everything from teacher salaries to classroom supplies to after-school programs. School districts can’t fully fund the resources students need without property tax revenue.
Public safety: Your property tax dollars support police, firefighters, and emergency responders across Colorado. Some communities assess extra taxes to meet local safety standards or improve emergency services.
Infrastructure: Colorado property taxes help maintain roads, state highways, water services, and public transit systems (like RTD). Your tax dollars keep critical infrastructure in working order, especially within busy urban areas and mountain towns.
Government services: Property taxes fund community resources like libraries, parks, waste collection, recreation centers, and environmental protection agencies. Taxes also support public health programs, housing initiatives, and tourism campaigns in some areas.
Resources and Contacts
Colorado Property Tax FAQs
Does Colorado have property tax?
Yes, Colorado has property taxes, as do all other 49 states in the U.S.
How much is property tax in Colorado?
Colorado property owners typically pay between $1,500 and $2,000 annually in property taxes, depending on their property’s value.
When are property taxes due in Colorado?
Colorado property taxes are due in two installments: the first by February 28th and the second by June 15th.
What is the property tax rate in Colorado?
Colorado has an average property tax rate of around 0.50%, well below the national average.
