Colorado vs Kentucky
Property Tax Comparison: Colorado vs. Kentucky
Summary – Both Colorado and Kentucky levy property taxes that are based on the assessed value of real‑estate. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property‑tax rate is lower than Kentucky’s, resulting in lower annual tax payments for comparable home values.
Side‑by‑side metrics
| Metric | Colorado | Kentucky |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 0.77 % |
| Median home value | $502,200 | $192,300 |
| Median annual property tax | $2,448 | $1,472 |
| Property tax on a $250,000 home | $1,219 | $1,914 |
| Property tax on a $500,000 home | $2,438 | $3,827 |
| Median household income | $92,470 | $62,417 |
Sources: All figures are from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which state “wins” on property taxes?
- Lower effective tax rate: Colorado (0.49 %) vs. Kentucky (0.77 %).
- Rate difference: 0.28 percentage points, which is a 36.3 % lower rate in Colorado.
- Annual tax difference for a $250k home: $1,914 – $1,219 = $695.
- Annual tax difference for a $500k home: $3,827 – $2,438 = $1,389.
Because the comparison is based on the effective property‑tax rate, Colorado is the winner; homeowners would pay a smaller proportion of a home’s value in property taxes in Colorado than in Kentucky.
Who benefits most from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current or prospective homeowners | The table shows the expected annual tax burden for typical home values, useful for budgeting and assessing affordability. |
| Homebuyers considering relocation | Knowing the effective tax rate helps compare overall cost of living when combined with median household income data. |
| Retirees | Property‑tax expense is a major component of fixed‑income budgets; the lower rate in Colorado may be advantageous, though other factors (e.g., overall cost of living, climate) are also relevant. |
| Real‑estate investors | The rate differential influences net‑operating income calculations for rental properties or resale scenarios. |
| Policy analysts | The figures provide a baseline for evaluating state‑level tax structures and their impact on housing markets. |
The comparison is purely factual and does not account for other taxes (sales, income), exemptions, or local variations within each state.
Further reading
- Detailed information on Colorado’s property‑tax system: Colorado property tax
- Detailed information on Kentucky’s property‑tax system: Kentucky property tax
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate is lower, resulting in reduced annual tax payments for typical home values compared with Kentucky.
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.