Colorado vs Michigan
Colorado vs. Michigan Property Taxes
Intro
Both Colorado and Michigan levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property tax rate is substantially lower than Michigan’s, while median home values and household incomes differ markedly. The data below provides a side‑by‑side view of the key metrics that influence a homeowner’s tax burden in each state.
Side‑by‑Side Comparison
| Metric | Colorado | Michigan |
|---|---|---|
| Effective property tax rate | 0.49 % | 1.28 % |
| Median home value | $502,200 | $217,600 |
| Median annual property tax | $2,448 | $2,795 |
| Tax on a $250,000 home | $1,219 | $3,211 |
| Tax on a $500,000 home | $2,438 | $6,423 |
| Median household income | $92,470 | $71,149 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
Winner (lower tax rate): Colorado
- Effective tax‑rate advantage: Colorado’s rate of 0.49 % is 0.80 percentage points lower than Michigan’s 1.28 %, representing a 62.05 % relative reduction.
- Annual tax difference on a $250k home: $3,211 – $1,219 = $1,992 lower in Colorado.
- Annual tax difference on a $500k home: $6,423 – $2,438 = $3,985 lower in Colorado.
The lower effective tax rate means that, for comparable property values, Colorado homeowners pay less in property taxes than their Michigan counterparts.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Understanding the tax burden relative to home price helps in budgeting and selecting a location. |
| Retirees | Property taxes affect fixed‑income budgets; a lower rate can preserve retirement resources. |
| Real‑estate investors | Tax differentials influence cash‑flow projections and return‑on‑investment calculations. |
| Policy analysts | The contrast illustrates how state tax structures and median home values interact. |
The comparison is particularly useful for anyone evaluating the overall cost of homeownership in the two states, as it isolates the property‑tax component from other expenses.
Additional Resources
- Detailed information on Colorado’s property‑tax system: Colorado property tax
- Detailed information on Michigan’s property‑tax system: Michigan property tax
Based on the most recent ACS estimates, the figures presented reflect median values and average rates; individual tax bills may vary depending on local assessment practices, exemptions, and specific property characteristics.
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.