Colorado is known for its Old West, rugged individualism and relatively low taxes — in fact, the state has the tenth lowest property taxes in the nation. This low tax rate trend is true of its capital city Denver, as well. As of 2015, in Denver, residents face a property tax rate of .56 percent. Here’s a look at how that rate compares to other cities in Colorado and around the country.
How Do Denver Property Tax Rates Compare to Rates in the Rest of the Metro Area?
The city of Denver sits in Denver County, and this county has the lowest property tax rate of any county in the metro area. In fact, five of the six counties with the state’s highest property tax rates are in the Denver metro area.
Adams County’s property tax rate of .87 percent is .31 percent higher than the Denver property tax rate, and the rates in Broomfield and Douglas counties are .23 percent lower. In Arapahoe and Jefferson counties, property tax rates are .16 and .15 percent higher than rates in Denver.
These differences may sound small, but for a $300,000 home, these relatively minute differences can translate to hundreds or even thousands of dollars. A family paying Denver property tax on a home valued at $300,000 is likely to face an annual bill of $1,680. In contrast, a home with the same value in Adams County has a corresponding property tax bill of $2,610. That equates to a difference of nearly $1,000.
How Do Denver Property Tax Rates Measure Up to Other Counties in Colorado?
Not only does Denver County sport low property tax rates compared to other counties in the metro area. It also has relatively low property tax rates compared to counties throughout the state. Denver’s property tax rate is roughly average for the state of Colorado, but it’s important to note that most of the counties in Colorado with sizable cities have higher property tax rates than Denver County.
Larimer County, home to Fort Collins, and Pueblo County, home to the city of Pueblo, have property tax rate of .66 and .76 respectively. However, El Paso County, home to Colorado Springs (the second largest city in Colorado) is one of the only highly populated counties with lower property tax rates than Denver. However, its rate of .52 percent is marginally lower than Denver’s rate of .56 percent.
How Does Denver’s Property Tax Rate Relate to Tax Efficiency?
Although it has a relatively low property tax rate, Denver boasts relative tax efficiency. One independent analysis of the tax rates in various cities versus what they provide to citizens in terms of education, crime rates and other factors, named Denver as the top city in Colorado for tax efficiency, and Denver ranked 24th nationwide for tax efficiency.
How Do Denver Property Tax Rate Compare to Areas With Higher Property Tax Rates?
Wisconsin, Illinois and New Jersey are three of the states with the nation’s highest property tax rates, and as a result, residents of Milwaukee, Madison, Green Bay, Appleton, Chicago, Springfield, Champaign, Rockford, Atlantic City, and Jersey City are all likely to have higher property tax rates than residents of Denver. On average, residents of New Jersey pay a median property tax bill of nearly $4,000, nearly triple the median Denver property tax bill of $1,404.
In Nebraska, one of the states bordering Colorado, residents pay roughly twice as much property tax as the average Denver resident, and this equates to an annual property tax bill of $3,228.
Texas has the fifth highest property tax rates in the country, and Texans pay a median property tax bill of $3,327 per year. As a result, residents of cities like Austin, Dallas, Fort-Worth, and San Antonio likely pay substantially higher property tax rates than residents of Denver.
Even compared to Detroit, property taxes in Denver are low. Michigan has the eighth highest property taxes in the country, and residents of Detroit face a median property tax bill of $3,168. This is nearly twice Denver’s median property tax bill, and it’s surprising considering the blows suffered by Detroit’s housing market over the last decade.
How Do Denver’s Property Tax Bills Compare to Areas With Lower Property Tax Rates?
Although Colorado has the ninth lowest property tax rates in the nation, it still has slightly higher property tax rates than some of the other states with low rates. Hawaii has the lowest property tax rates in the nation, and its average of .28 percent is half of Denver’s rate of .56 percent.
Even though the median home value in Hawaii is $500,000, the median property tax bill is just $1,389. That is less than Denver’s median of $1,404. In Honolulu County, the rate is .35 percent, slightly higher than the state average.
As a result, if you own a $500,000 home in Honolulu, you are likely to have an annual property tax bill of $1,750. With a home of the same value in Denver, your bill is likely to be $2,800.
Alabama has the second lowest property tax rates in the nation, and it’s low rate of .43 percent combined with the relatively low home values in this state results in a median property tax bill of $532 statewide. In Birmingham and Mobile, residents pay a rate of .42 percent, and in Mobile, they pay .39 percent in property tax. If you bought a $300,000 home in one of these cities, you would pay an annual property tax bill between $1,170 and $1,296. A home of the same value in Denver would carry a tax bill of $1,680. However, it’s important to note that the median home prices in these cities in Alabama range from $122,000 to $142,000, significantly lower than the median home values in Denver.
What Is the Bottom Line Concerning Denver Property Tax?
Compared to residents in most areas of the country, Denver residents pay lower property tax rates. However, analysts have determined that these low rates do not relate to a lack of services or amenities. In fact, the city is well known for its tax efficiency.
2 Point Highlight
Colorado is known for its Old West, rugged individualism and relatively low taxes — in fact, the state has the tenth lowest property taxes in the nation.
The city of Denver sits in Denver County, and this county has the lowest property tax rate of any county in the metro area
