Colorado vs Massachusetts
Property Tax Comparison: Colorado vs. Massachusetts
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado and Massachusetts differ markedly in how much homeowners pay in property taxes. The following sections present the key metrics, calculate the differences, and identify which state imposes the lower tax burden.
Side‑by‑Side Metrics
| Metric | Colorado | Massachusetts |
|---|---|---|
| Effective property tax rate | 0.49 % | 1.11 % |
| Median home value | $502,200 | $525,800 |
| Median annual property tax | $2,448 | $5,813 |
| Property tax on a $250,000 home | $1,219 | $2,764 |
| Property tax on a $500,000 home | $2,438 | $5,528 |
| Median household income | $92,470 | $101,341 |
Sources: Colorado property tax and Massachusetts property tax.
Which State “Wins” on Property Taxes?
- Winner (lower tax rate): Colorado
- Tax‑rate difference: 0.62 percentage points, which is a 55.91 % lower effective rate than Massachusetts (1.11 % – 0.49 % = 0.62 %; 0.62 / 1.11 ≈ 55.91 %).
- Annual tax difference on a $250k home: $2,764 – $1,219 = $1,545.
- Annual tax difference on a $500k home: $5,528 – $2,438 = $3,090.
Why Colorado wins: The effective property tax rate in Colorado (0.49 %) is less than half that of Massachusetts (1.11 %). Because the rate is applied to the assessed value of a property, the lower rate translates into consistently lower tax payments across home price points, as shown by the $1,219 vs. $2,764 tax on a $250,000 home and the $2,438 vs. $5,528 tax on a $500,000 home.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of Findings |
|---|---|
| Current or prospective homeowners | Lower effective rates in Colorado reduce the ongoing cost of home ownership, especially for properties priced near the median. |
| Retirees and fixed‑income households | A lower tax burden can free up discretionary income; Colorado’s rates may be more favorable for those on limited budgets. |
| Real‑estate investors | The tax differential affects cash‑flow projections; investing in Colorado may yield lower property‑tax expenses per dollar of asset value. |
| Policy analysts | The contrast illustrates how state‑level tax structures influence overall fiscal pressure on residents, independent of median income levels. |
While Massachusetts reports a higher median household income ($101,341 vs. $92,470 in Colorado), the property‑tax burden per home is substantially greater, which can offset the income advantage for residents whose primary expense is housing.
Summary
Based on the most recent ACS estimates, Colorado imposes a significantly lower effective property tax rate than Massachusetts, resulting in lower annual taxes for comparable home values. The difference is pronounced both in percentage terms (≈ 56 % lower) and in dollar amounts ($1,545–$3,090 less per year for typical $250k–$500k homes). Stakeholders whose financial planning is sensitive to property‑tax costs—such as homeowners, retirees, and investors—may find Colorado’s tax environment comparatively less burdensome.
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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.