California vs Colorado
Property Tax Comparison: California vs. Colorado
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the two states differ noticeably in how much property owners pay relative to home value. The data below presents the key metrics that shape the overall tax burden for homeowners in each state.
Side‑by‑side metrics
| Metric | California | Colorado |
|---|---|---|
| Effective property tax rate | 0.71 % | 0.49 % |
| Median home value | $695,400 | $502,200 |
| Median annual property tax | $4,926 | $2,448 |
| Tax on a $250,000 home | $1,771 | $1,219 |
| Tax on a $500,000 home | $3,542 | $2,438 |
| Median household income | $96,334 | $92,470 |
Sources: “Effective property tax rate,” “Median home value,” “Median annual property tax,” and “Median household income” are taken from the 2023 ACS 5‑year estimates.
Which state has the lower tax burden?
Winner (lower effective tax rate): Colorado
- Rate difference: 0.22 % (Colorado’s rate is 31.18 % lower than California’s).
- Annual tax difference on a $250,000 home: $552 less in Colorado.
- Annual tax difference on a $500,000 home: $1,104 less in Colorado.
Why Colorado wins: The effective property tax rate of 0.49 % is lower than California’s 0.71 %. Because the rate is applied to the assessed value of a property, a lower percentage translates directly into lower tax payments for comparable home values. The difference persists across the $250 k and $500 k price points shown above.
Who benefits most from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current homeowners | Understanding how much they are paying relative to the state average can inform budgeting and potential appeals. |
| Prospective homebuyers | Lower effective rates in Colorado may reduce the ongoing cost of ownership, especially for buyers targeting mid‑range homes ($250k–$500k). |
| Retirees and fixed‑income households | A lower property tax burden can make a state more affordable when income is limited; Colorado’s median household income is close to California’s, but its taxes are lower. |
| Real‑estate investors | The tax differential affects cash‑flow calculations for rental properties and long‑term holdings. |
| Policy analysts | The side‑by‑side figures provide a snapshot for comparative studies of state tax structures. |
These insights are purely descriptive; they do not constitute financial or tax advice.
Further reading
- Detailed information on California’s property‑tax system: California property tax
- Detailed information on Colorado’s property‑tax system: Colorado property tax
Based on the most recent ACS estimates, the figures above reflect statewide medians and average rates. Local variations (e.g., county‑level assessments, exemptions, and voter‑approved bonds) can cause actual tax bills to differ from the median values presented.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.