Calculating Property Taxes

A house at sunset to illustrate an article on calculating property taxes

Calculating property taxes can help you avoid problems later.

Calculating property taxes is an important part of understanding the costs of home ownership. The bad news? Property taxes are an unavoidable. The good news…Colorado has some of the lowest property tax rates in the United States and 100% of the funds stay within the county that you reside. Typically, education, emergency services, transportation, libraries, parks and recreation are supported by your property tax contributions.

What is the average property tax near me?

Online sites like Smart Assets can show you how much property taxes in your county will add to your annual home expenses. Some mortgage calculators include property tax, PMI, HOA fees, etc. so you can get a clear picture of your monthly payment.

When you buy a home in the state of Colorado, you have the option of paying the property taxes each year on your own, (in one or two lump-sums), or you can escrow the funds simply making it a small part of your monthly mortgage payment.

How are your property taxes calculated?

In Colorado, your residential property tax is dependent on two elements, the mill rate determined by the county government and the assessed value of your home. Tax rates depend on what amount the government believes it needs to meet their annual budget. Expressed in the form of a “mill,” or $1 for every $1,000 of the property value, your assessed value is then multiplied by the mill rate.

A yearly estimation, the assessed value of your home is dependent on a number of items, including area values, home improvements and market conditions. Currently, Colorado applies an average of 6.24% rate, a fraction of your home’s actual value but still enough to add to your monthly payments. So, if you’re home’s actual value was $100,000, you should expect to pay taxes on just $6,240.

A more specific example of how property taxes add to monthly expense
If you purchased a house in Denver county this past year, for $249,100 then you should expect to pay $1,404 in property taxes for the year, roughly adding $117 each month to your mortgage payment. 

Property taxes can be confusing

To get professional advice, Partner Colorado Credit Union has trained staff members on hand to assist you.  Just contact us at (303) 422-6221 to get in touch with a mortgage loan officer. 

You can also check out the calculators Partner Colorado provides to help you determine your monthly expenses.