Colorado vs New Jersey
Property‑Tax Comparison: Colorado vs. New Jersey
According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), Colorado and New Jersey differ markedly in their property‑tax burdens. Both states have relatively high median home values, but the effective tax rates and resulting annual payments vary substantially. The following sections present the key metrics side‑by‑side, identify which state has the lower tax rate, and outline the groups for whom the comparison may be most relevant.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Colorado | New Jersey |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 2.23 % |
| Median home value | $502,200 | $427,600 |
| Median annual property tax | $2,448 | $9,541 |
| Property tax on a $250,000 home | $1,219 | $5,578 |
| Property tax on a $500,000 home | $2,438 | $11,157 |
| Median household income | $92,470 | $101,050 |
| Internal link | Colorado property tax | New Jersey property tax |
All figures are derived from the U.S. Census Bureau’s 2023 ACS (5‑year) estimates.
Which State Has the Lower Property‑Tax Burden?
Winner (lower tax rate): Colorado
- Tax‑rate difference: 2.23 % – 0.49 % = 1.74 percentage points, representing a 78.15 % lower effective rate in Colorado.
- Annual tax difference on a $250,000 home: $5,578 – $1,219 = $4,359.
- Annual tax difference on a $500,000 home: $11,157 – $2,438 = $8,719.
Because Colorado’s effective property‑tax rate is roughly one‑quarter of New Jersey’s, homeowners paying taxes on comparable property values will generally owe substantially less in Colorado.
Who Might Find This Comparison Most Useful?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Understanding how property‑tax obligations differ can inform decisions about refinancing, selling, or relocating. |
| Prospective homebuyers | The tax burden is a significant component of total housing cost; the data help compare affordability across states. |
| Retirees | Many retirees prioritize lower ongoing expenses; lower property taxes may influence the choice of residence. |
| Real‑estate investors | Property‑tax rates affect cash‑flow projections; the table provides a quick benchmark for investment analysis. |
| Policy analysts | The side‑by‑side figures illustrate how state‑level tax policies translate into household-level costs. |
The comparison is strictly factual; it does not account for other cost‑of‑living factors such as income taxes, sales taxes, or local service levels.
Summary
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate of 0.49 % is considerably lower than New Jersey’s 2.23 %. This results in median annual taxes of $2,448 versus $9,541, and tax payments on $250k and $500k homes that are roughly one‑quarter of those in New Jersey. Stakeholders who are sensitive to property‑tax expenses—such as homeowners, retirees, and investors—may find Colorado’s tax environment more favorable when evaluating housing costs across the two states.
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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.