Colorado vs Minnesota
Property‑Tax Comparison: Colorado vs. Minnesota
Intro
Both Colorado and Minnesota levy local property taxes that fund schools, roads, and other public services. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property‑tax rate is roughly half that of Minnesota. The following tables and calculations show how the two states compare on key tax and housing metrics.
Side‑by‑Side Metrics
| Metric | Colorado | Minnesota |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 1.04 % |
| Median home value | $502,200 | $305,500 |
| Median annual property tax | $2,448 | $3,184 |
| Tax on a $250,000 home | $1,219 | $2,606 |
| Tax on a $500,000 home | $2,438 | $5,211 |
| Median household income | $92,470 | $87,556 |
| Reference links | Colorado property tax | Minnesota property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Which State “Wins” on Property Taxes?
Colorado records the lower effective property‑tax rate (0.49 % vs. 1.04 %).
- Rate difference: 0.55 % points, which is a 53.22 % lower rate than Minnesota.
- Annual tax difference on a $250k home: $2,606 – $1,219 = $1,387.
- Annual tax difference on a $500k home: $5,211 – $2,438 = $2,773.
Because the effective rate is lower, Colorado’s property‑tax burden is smaller for homeowners at comparable property values.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Prospective homebuyers | Understanding the property‑tax component helps estimate total housing costs before purchase. |
| Current homeowners | Knowing the effective rate and median taxes can inform budgeting and potential refinancing decisions. |
| Retirees | Since property taxes are a recurring expense, a lower rate may affect retirement‑income planning. |
| Real‑estate investors | Tax differentials influence cash‑flow projections for rental or investment properties. |
The data are factual and state‑level; local variations (e.g., city or county millage rates) can cause actual taxes to differ from the median figures shown here.
Conclusion
Based on the most recent ACS estimates, Colorado’s property‑tax system imposes a lower effective rate and lower annual taxes on comparable homes than Minnesota’s system. Stakeholders who prioritize a lower property‑tax burden—such as homebuyers, existing owners, retirees, and investors—may find Colorado’s tax environment more favorable, while other factors (e.g., income levels, housing markets, and local services) remain important considerations.
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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.