Taxes In Colorado

Property taxes in Colorado Springs are lower than the national average at 0.48% of the home’s assessed value.  The income tax rate in the state of Colorado is 4.55%. Find out how this benefits you.

Property Tax In Colorado

Colorado has some of the lowest residential property taxes in the country. With an average effective rate of just 0.48%, it is the third-lowest rate in the U.S. It’s also well below the national average of 1.07%. What does this mean for you? A twelve hundred dollar savings on your property taxes each year is going to equal out to a hundred dollars a month. That $100 a month can now be used to increase your budget on homes you’re looking at and get you into more house.

Let’s compare that to other states that we commonly see people moving here from. California has a .74% property tax, which is only slightly higher than Colorado’s. The property tax in Texas is over the national average at 1.67%. Here is a big one we see. Illinois’s property taxes are 2.27%, which is twice the national average. You can see that Illinois is driving those up whereas Colorado and California, oddly enough, are bringing those down. Where you live and the property tax that state upholds has a direct effect on how much home you can afford. If property taxes are eating up a chunk of your monthly budget, that leaves you looking at cheaper homes. People are moving to Colorado to get a little more bang for their buck.

Income Tax In Colorado

Colorado resident’s income is taxed at a flat rate of 4.55% of their taxable income, regardless of their income bracket or marital status. Having a flat rate across the board keeps taxes relative and makes living very manageable. Now remember, our property tax is right in line with California’s, but let’s compare our income tax. California’s income tax is a whopping 9.3%, which is going to cause a major separation as far as cost of living. Texas holds property tax at a rate that is over 3x higher than Colorado’s, but they have zero income tax. Texas is one of nine states that doesn’t have an individual income tax and that helps create a balance in monthly expenses from that property tax. Illinois has an income tax of 4.95%, which puts their income and property taxes higher than Colorado. Colorado has become increasingly desirable to live in thanks to the low tax rates.

Sales Tax In Colorado

The total of state, county and city sales tax rates comes out to 7.25%. Take that to Texas, where sales tax is 8.25%. That one percent may not seem like a lot, but consider the fact that you’re paying an extra percent on every single purchase you make, big or small. Over the span of your lifetime, that adds up! As you can see, there are various things that go into moving from one state to another. When looking at the cost of living, it’s important to talk about the overall package. Our cost of housing as it sits is actually very competitive to some other states by the time you factor in property taxes, income tax, and sales tax.

About The Author

The Team at My Front Range Living are a group of full time real estate experts serving Colorado Springs, El Paso County and the surrounding areas. Their knowledge of the local community and experience in the industry provide you incomparable value when buying or selling a home. With several years of experience in helping out of state buyers and sellers, they are the go-to team when it comes to relocating and helping Colorado feel like home.

Even if you’re looking for an agent in another city or state, the My Front Range Living team has a network of experts that can connect you with the right professional.

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