DENVER (KDVR) — Not only is the sky bluer in Colorado, but the property taxes might just be lower, at least according to a new WalletHub report.
Property taxes have been a hot topic of debate both in and out of the Colorado legislature.
After the 2023 assessment rates were released, many saw their property values spike, leading many to worry about whether or not they could afford their annual tax bill.
Despite this, WalletHub reported that Coloradans have the third-lowest effective property tax rate in the nation at 0.49%.
This was only behind Hawaii and Alabama:
- Hawaii – Effective tax rate: 0.27%
- Alabama – Effective tax rate: 0.39%
- Colorado – Effective tax rate: 0.49%
- Nevada – Effective tax rate: 0.50%
- South Carolina – Effective tax rate: 0.53%
Several East Coast states appeared at the bottom of the list, including New Jersey, which WalletHub calculated to have a 2.33% effective tax rate, the highest in the country.
Even with a low effective tax rate, Coloradans still have a relatively high property tax bill, given the high median home values in the state. WalletHub calculated the median home value to be $465,900, which would make the yearly property tax bill $2,278.
Alabama, on the other hand, has a median home value of $179,400, which makes its annual tax bill $701, according to WalletHub.
New Jersey also had the highest annual tax bill at $9,345. This is despite the median home value being nearly $65,000 lower than in Colorado.
Some may notice that this effective rate differs from what you’ll find on the Colorado government website. This is because the state uses assessment values — which, for single-family homes was 6.7% of market value in 2023 — to figure out how much of a property can be taxed.
That value is then used when calculating the amount of property taxes owed.
Not every state uses this system, so WalletHub took the median real estate tax payment and divided that by the median home price in each state.
Samantha Jarpe
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