Denver Property Taxes Explained
Colorado has some of the lowest property taxes in the country — but how they're calculated, when they're due, and what newcomers often get wrong about them is worth understanding.
Colorado's property tax system is genuinely one of the better deals in residential real estate — effective rates are significantly lower than most coastal states and lower than many Midwestern states too. But the system has quirks that confuse new homeowners, particularly around how the assessed value is determined and the fact that Colorado taxes are paid in arrears.
Colorado's Property Tax Rate: The Basics
Property taxes in Colorado are calculated using:
- Actual Value — the county assessor's estimate of your property's fair market value
- Assessment Rate — a percentage applied to the actual value to get the "assessed value"
- Mill Levy — the tax rate applied to the assessed value (1 mill = $1 per $1,000 of assessed value)
For residential property, the assessment rate is approximately 6.7–7.15% (this has been adjusted by legislation in recent years and may continue to change). This is far lower than commercial property assessment rates, which is a deliberate policy choice to limit residential tax burdens.
A Simple Example
Home actual value: $700,000
Assessment rate: 6.95%
Assessed value: $700,000 × 6.95% = $48,650
Mill levy (Denver): approximately 71–80 mills (varies by district)
Annual property tax: $48,650 × 0.075 = ~$3,649/year
This works out to roughly 0.5–0.6% of the purchase price annually — a fraction of what New Jersey homeowners pay (approximately 2.2%) or Illinois (approximately 2.1%).
How the County Determines Your Home's Value
Denver County (and all Colorado counties) reassess property values every two years, in odd-numbered years. The assessor uses comparable sales data to estimate market value. You'll receive a Notice of Valuation showing your home's assessed value.
Important: The county's assessed value may not match your purchase price exactly, and it may lag market conditions. If you bought during a period of rapid appreciation, your assessed value may be below market. If the market cooled after you bought, it may be close to or above your purchase price.
Appealing Your Assessment
If you believe the county's assessed value is too high, you have the right to appeal. The appeal process:
- You'll receive a Notice of Valuation in May of odd-numbered years
- You have until June 1 to file an appeal with the County Assessor
- The assessor reviews your appeal and responds by August 15
- If still unsatisfied, you can appeal to the Board of Equalization
Successful appeals require evidence — comparable sales in your neighborhood that support a lower value than the assessor's estimate. I can pull comps to help you evaluate whether an appeal is warranted.
Colorado Taxes Are Paid in Arrears
This is the part that confuses most newcomers.
"In arrears" means you pay last year's taxes this year. Your 2025 property taxes are paid in 2026. This has two practical implications:
At closing: When you buy a home, the seller owes you a credit for the portion of the current year's taxes that have accrued but haven't been paid yet. If you close on June 1, the seller owes you roughly 5 months of property taxes (January through May). You'll see this on the Settlement Statement as a credit to the buyer.
First year as a homeowner: After you close, you won't receive a property tax bill until the following April (for the prior year).
When Are Property Taxes Due in Denver?
Denver County property tax bills are issued in January for the prior year's taxes.
Payment options:
- Full payment: Due April 30
- First half: Due February 28
- Second half: Due June 15
If you have a mortgage with an escrow account, your lender handles this — they collect a portion of your estimated annual taxes with each monthly mortgage payment and pay the tax bill on your behalf.
If you don't have an escrow account (common with larger down payments or a cash sale), you're responsible for setting aside the funds and paying directly.
Colorado Senior and Veteran Exemptions
Colorado offers a Senior Homestead Exemption that exempts 50% of the first $200,000 of a primary residence's actual value for qualifying seniors (65+ who have owned and lived in the home for 10+ years). The state reimburses the local taxing districts for the lost revenue.
Veterans with service-connected disabilities may also qualify for property tax exemptions. Contact Denver County's Assessor's office for current eligibility criteria.
What to Budget
For most buyers in NW Denver purchasing in the $600K–$900K range, budget $3,500–$5,500/year in property taxes, or $290–$460/month to set aside if your lender requires escrow. This is a rough estimate — your specific property's assessed value and your tax district's mill levy determine the exact amount.
Your lender will calculate an escrow payment based on the most recent tax bill. Be aware that if your home's assessed value increases significantly at the next reassessment, your escrow payment will increase.
About the Author
Scot Conti
Broker Associate at West + Main Homes. Berkeley resident, former architectural photographer, and your guide to Denver Metro real estate.
Ready to Take the Next Step?
Thinking about making a move? Let's schedule time to talk.
Whether you're buying, selling, or just starting to think through the numbers — I'm happy to walk you through what to expect and build a plan around your timeline.