Colorado vs North Dakota
Property‑Tax Comparison: Colorado vs. North Dakota
Intro
Both Colorado and North Dakota 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 roughly half that of North Dakota. The two states also differ in median home values, household incomes, and the resulting annual tax amounts for typical home prices.
Side‑by‑Side Metrics
| Metric | Colorado | North Dakota |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 0.99 % |
| Median home value | $502,200 | $241,100 |
| Median annual property tax | $2,448 | $2,392 |
| Tax on a $250,000 home | $1,219 | $2,480 |
| Tax on a $500,000 home | $2,438 | $4,961 |
| Median household income | $92,470 | $75,949 |
| Link to state‑specific page | Colorado property tax | North Dakota property tax |
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Who Wins on Property‑Tax Rate?
- Winner (lower rate): Colorado – its effective property‑tax rate of 0.49 % is lower than North Dakota’s 0.99 %.
- Rate difference: 0.50 percentage points, which is a 50.86 % lower rate than North Dakota’s.
- Annual tax difference on a $250,000 home: $1,261 less in Colorado ($1,219 vs. $2,480).
- Annual tax difference on a $500,000 home: $2,523 less in Colorado ($2,438 vs. $4,961).
The lower rate in Colorado translates into reduced tax liability for owners of comparable‑valued properties, even though Colorado’s median home value is higher.
Which Audience Is This Comparison Most Relevant For?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding how the tax rate impacts yearly cash flow for homes at common price points ($250 k and $500 k). |
| Homebuyers relocating for cost reasons | Direct comparison of tax burden alongside median home values and household incomes. |
| Retirees evaluating affordability | Property‑tax rate is a fixed‑expense component that can affect fixed‑income budgeting; Colorado’s lower rate may be advantageous. |
| Real‑estate investors | Tax rate differences affect net operating income and overall return on investment for rental properties. |
| Policy analysts or local government officials | The data illustrate how tax structures vary between two states with different fiscal policies. |
The comparison is factual and based solely on the latest ACS estimates; it does not account for other cost‑of‑living factors such as sales taxes, income taxes, or utility costs.
Summary
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate of 0.49 % is substantially lower than North Dakota’s 0.99 %. This results in lower annual taxes for comparable home values, making Colorado the “winner” in a direct property‑tax rate comparison. Stakeholders such as homeowners, retirees, and investors can use these figures to assess the relative tax burden when considering residence or investment in either state.
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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.