Colorado vs North Carolina
Property‑Tax Comparison: Colorado vs. North Carolina
Introduction
Both Colorado and North Carolina 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), the two states differ markedly in effective tax rates, median home values, and the resulting annual tax bills. The data below provide a side‑by‑side view of the key metrics and highlight which state imposes the lower property‑tax burden.
Side‑by‑Side Comparison
| Metric (2023 ACS) | Colorado | North Carolina |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 0.70 % |
| Median home value | $502,200 | $259,400 |
| Median annual property tax | $2,448 | $1,815 |
| Property tax on a $250,000 home | $1,219 | $1,749 |
| Property tax on a $500,000 home | $2,438 | $3,499 |
| Median household income | $92,470 | $69,904 |
Sources: According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax?
Winner (lower tax rate): Colorado
- Effective tax‑rate advantage: Colorado’s rate of 0.49 % is 0.21 percentage points lower than North Carolina’s 0.70 %. This represents a 30.33 % lower rate.
- Dollar‑amount impact:
- On a $250,000 home, the annual tax in Colorado is $1,219 versus $1,749 in North Carolina – a difference of $530.
- On a $500,000 home, the annual tax in Colorado is $2,438 versus $3,499 in North Carolina – a difference of $1,061.
Because the comparison is based on the effective property‑tax rate, Colorado consistently yields a lower tax burden across the price points shown.
Colorado property tax | North Carolina property tax
Who May Benefit Most from This Comparison?
| Audience | Relevance of Findings |
|---|---|
| Current or prospective homeowners | Lower effective rates in Colorado mean a smaller portion of a home’s assessed value is paid annually, which can affect affordability calculations, especially for higher‑priced properties. |
| Retirees on fixed incomes | While Colorado’s overall tax burden is lower, retirees must also consider median household income (Colorado $92,470 vs. North Carolina $69,904). A lower tax rate may ease cash‑flow pressures, but the higher cost of housing in Colorado could offset the tax advantage. |
| Real‑estate investors | Investors comparing cash‑on‑cash returns should factor in the $530‑$1,061 annual tax savings per property that Colorado offers relative to North Carolina. |
| Policy analysts | The data illustrate how differing assessment practices and local tax structures translate into measurable differences in taxpayer obligations, independent of other fiscal variables such as income tax rates. |
The comparison is purely fiscal; it does not address other cost‑of‑living components, state income taxes, or quality‑of‑life considerations.
Summary
- Effective property‑tax rate: Colorado 0.49 % vs. North Carolina 0.70 %.
- Median home values: Colorado’s median ($502,200) is roughly double that of North Carolina ($259,400).
- Annual tax burden: For identical home values, Colorado’s taxes are lower by $530 on a $250k home and $1,061 on a $500k home.
Based on the most recent ACS estimates, Colorado imposes a lower property‑tax rate than North Carolina, resulting in lower annual tax payments for comparable property values.
Sources
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates) – Property tax data for Colorado and North Carolina.
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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.