When calculating the total cost of your future home, you need to take into account not just your monthly mortgage payment but the cost of utilities, commute expenses and of course, property taxes. If you’re considering relocating to Aurora, CO, you get to enjoy property taxes that are below the national average but still relatively high compared to other parts of Colorado.
How Is Property Tax Calculated in Aurora, CO?
To calculate your Aurora property tax, the county takes into account the classification of your property (business, residential, etc.), the actual value of your property, the current assessment rate, the assessed value and finally your property tax rate.
Annually, your home’s value is reassessed based on homes that have sold in your area — as a result, rising home values have a direct impact on your property tax bill, and as Colorado has one of the fastest growing real estate markets in the country it’s also important to consider the long term effect rising values may have on your property tax obligations.
The value of your property is then multiplied by the residential assessment rate, which, as of 2016, is .0796. The product is considered the “assessed value” of your home, and your property tax rate is applied to that number.
For example, if your home is valued at $275,000, it receives the residential assessment rate of .0796 which results in an assessed value of $21,890. This number is subjected to the (sample) property tax rate of .075, and that results in a tax bill of $1,653. The process is the same regardless of where you live, but the rates used vary based on your county of residence.
What is Included in Aurora Property Tax?
Aurora property tax consists of four different taxes including the county tax rate, the city tax rate, the school district tax rate, and the water and sanitation tax rate. These four rates are added together to determine the total Aurora property tax rate.
There are three different Aurora property tax rates, as the suburb sprawls across three counties with different school districts.
What are Adams County Property Tax Rates?
Compared to other counties in the state of Colorado, Adams County has the highest property tax rate,. At .87 percent, the property tax rate in Adams County is nearly three times as high as the state’s lowest property tax rate of .28 percent in Gilpin County.
However, the median home value in Adams County is only $186,600, relatively lower than medians throughout other parts of the state. As a result, residents of Adams County face a median property tax bill of $1.623 per year.
What are Arapahoe County Property Tax Rates?
As of 2015, the median property tax bill in Arapahoe County is $1,661. This is only $38 more than the median payment in Adams County, but this may be surprising to some, as the property tax rate is lower in Arapahoe County.
Residents of Arapahoe County pay a property tax rate of .72 percent, and their homes have a median value of $230,700. Essentially, the lower tax rate combined with the slightly more valuable homes results in Arapahoe County residents having roughly the same property tax bill as Adams County residents.
What are Douglas County Property Tax Rates?
With a property tax rate of .79 percent, Douglas County has the third highest property tax rate in the state of Colorado. It is positioned directly between Adams and Arapahoe County, which are in spots one and five, respectively. However, the median property tax bill of $2,654 is substantially higher than the median property tax bills for Aurora residents who live in Adams or Arapahoe Counties. This is due to the fact that the median home value in Douglas County is $335,600.
How Do Aurora Property Tax Rates Compare to Denver’s?
The city of Denver is part of Denver County, and surprisingly, this county has the lowest property tax rate of all the counties in the metro area. As of 2015, residents of Denver pay a property tax rate of .56 percent. This is .31 percent lower than Adams County, .23 percent lower than Douglas County and .16 percent lower than Arapahoe County. The median home value in Denver County is $249,100, which results in a median property tax bill of $1,404.
In spite of Denver’s relatively low property tax rate, however, the city is known for providing great services. In one analysis of tax efficiency, researchers looked at tax rates around the country compared to the schools, crime and other social indicators. Denver ranked first in the state of Colorado and 24th nationwide. However, the city also levies a special 3.56 percent sales tax to help offset its relatively low property taxes.
How Do Aurora Property Tax Rates Compare to Other Cities’ Nationwide?
Property tax rates are relatively lower in Colorado than in the rest country, and in fact, on average, Colorado has the tenth lowest property tax rates in the nation. This trend is true for homeowners in Aurora CO, regardless of the county in which they reside.
Nationwide, the median property tax rate is 1.19 percent. This is .32 percent higher than the highest property tax rate in Colorado (.87 percent in Adams County). The nation’s median rate corresponds to a tax bill of $3,570 on a home valued at $300,000. Â In contrast, residents of Adams County would pay a property tax bill of $2,610 on a property of the same value, and residents of Douglas and Arapahoe Counties would face tax bills of $2,370 and $2,160 respectively.
What’s the Final Analysis?
Compared to many cities in other states, property tax rates in Aurora, CO are relatively low, but they are slightly higher than rates throughout the rest of Colorado. This is attributed to a range of factors including increasing home values and continued development which necessitates more infrastructure. However, if you want the amenities of Denver, but the space, peace, and quiet associated with the suburbs, the slightly higher property tax rates in Aurora are likely worth the trade off.
2 Point Highlight
However, if you want the amenities of Denver but the space, peace and quiet associated with the suburbs, the slightly higher property tax rates in Aurora are likely worth the trade off.
Property tax rates are relatively lower in Colorado than in the rest country, and in fact, on average, Colorado has the tenth lowest property tax rates in the nation.
