Colorado vs Indiana
Property Tax Comparison: Colorado vs. Indiana
Summary:
Both Colorado and Indiana levy property taxes based on the assessed value of real‑estate. Using the latest 2023 American Community Survey (ACS) 5‑year estimates, Colorado’s effective property‑tax rate is lower than Indiana’s, which results in lower annual taxes for comparable home values. The two states also differ markedly in median home values and household incomes, factors that influence the overall tax burden for residents.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Colorado | Indiana |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 0.74 % |
| Median home value | $502,200 | $201,600 |
| Median annual property tax | $2,448 | $1,496 |
| Property tax on a $250,000 home | $1,219 | $1,855 |
| Property tax on a $500,000 home | $2,438 | $3,711 |
| Median household income | $92,470 | $70,051 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Tax Burden?
- Winner (lower effective tax rate): Colorado (0.49 % vs. 0.74 %).
- Rate difference: 0.25 percentage points, which is a 34.31 % lower rate in Colorado.
- Annual tax difference on a $250,000 home: $636 less in Colorado.
- Annual tax difference on a $500,000 home: $1,273 less in Colorado.
The lower effective tax rate in Colorado means that, for any given property value, the annual property‑tax bill is smaller than in Indiana. The absolute dollar difference widens as home values increase because the tax is calculated as a percentage of assessed value.
Who Benefits Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current homeowners | Understanding how their property‑tax bill compares to a neighboring state can inform decisions about refinancing, relocating, or budgeting. |
| Prospective homebuyers | The effective tax rate, combined with median home values, helps evaluate total housing costs in each market. |
| Retirees and fixed‑income households | Lower tax rates can reduce the ongoing cost of homeownership, which is important for budgeting on a fixed income. |
| Policy analysts / planners | The contrast in rates and median incomes provides a basis for assessing fiscal policy impacts across states. |
Because Colorado’s tax rate is lower, it generally offers a smaller property‑tax burden for homeowners of any price point. However, Colorado’s median home price ($502,200) is more than double Indiana’s ($201,600). When the higher home price is taken into account, the total amount paid in property taxes (median annual tax) is still higher in Colorado ($2,448) than in Indiana ($1,496). Therefore, the advantage of a lower rate is most pronounced for owners of higher‑valued properties.
Additional Context
- Household income: Median household income is higher in Colorado ($92,470) than in Indiana ($70,051). Higher incomes can offset the larger nominal tax amount that Colorado homeowners pay due to higher home values.
- Tax calculations: Effective property‑tax rates are derived by dividing the average annual tax paid by the median home value. This standardizes the metric across states with different home‑price levels.
Related Articles
- Detailed breakdown of Colorado’s property‑tax structure: Colorado property tax
- Detailed breakdown of Indiana’s property‑tax structure: Indiana property tax
Conclusion:
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate (0.49 %) is lower than Indiana’s (0.74 %). This results in lower annual taxes for comparable home values, benefiting homeowners—especially those with higher‑priced properties. Nonetheless, higher median home values and incomes in Colorado mean that the absolute tax paid by the median homeowner remains higher than in Indiana. Stakeholders should weigh both rate and home‑price differences when evaluating overall property‑tax burden.
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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.