Colorado vs Rhode Island
Property‑Tax Comparison: Colorado vs. Rhode Island
Summary – Both Colorado and Rhode Island have relatively high home values, but their property‑tax burdens differ substantially. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property‑tax rate is less than half that of Rhode Island, resulting in lower annual taxes for comparable home values.
Side‑by‑side key metrics
| Metric | Colorado | Rhode Island |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 1.32 % |
| Median home value | $502,200 | $368,800 |
| Median annual property tax | $2,448 | $4,854 |
| Tax on a $250,000 home | $1,219 | $3,291 |
| Tax on a $500,000 home | $2,438 | $6,581 |
| Median household income | $92,470 | $86,372 |
Sources: data drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates; internal links – Colorado property tax and Rhode Island property tax.
Which state “wins” on property tax?
Colorado has the lower tax burden.
- Effective tax‑rate advantage: Colorado’s rate of 0.49 % is 0.83 percentage points lower than Rhode Island’s 1.32 %—a 62.96 % relative difference.
- Annual‑tax impact: For a $250 k home, the Colorado homeowner pays $1,219 versus $3,291 in Rhode Island, a difference of $2,072 per year. For a $500 k home, the gap widens to $4,143 per year ($2,438 vs. $6,581).
The lower effective rate in Colorado translates directly into lower annual property‑tax payments for homeowners at typical price points.
Who is likely to benefit from this comparison?
| Audience | Relevance of lower Colorado tax rate |
|---|---|
| Current homeowners | Existing Colorado owners pay less each year than comparable Rhode Island owners, freeing up household cash flow. |
| Prospective homebuyers | Buyers evaluating affordability will see a lower ongoing tax expense in Colorado, especially at median or higher price points. |
| Retirees | Fixed‑income retirees may prefer the lower tax liability in Colorado, as it reduces the need for supplemental income to cover property taxes. |
| Investors | Lower annual taxes can improve net‑operating income for rental properties in Colorado relative to Rhode Island. |
| Policy analysts | The rate differential provides a clear quantitative example of how state tax structures affect overall housing costs. |
The comparison is most useful for individuals or entities that consider annual property‑tax cost a primary factor in location decisions.
Methodology
- Data source: All figures are taken from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
- Effective tax rate: Calculated as median annual property tax divided by median home value.
- Tax amounts for $250 k and $500 k homes: Obtained by applying each state’s effective rate to the stated home values.
Conclusion
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate (0.49 %) is substantially lower than Rhode Island’s (1.32 %). The difference results in annual tax savings of roughly $2,000 on a $250 k home and more than $4,000 on a $500 k home. Stakeholders for whom property‑tax expense is a key consideration—homeowners, retirees, buyers, and investors—will find Colorado’s tax environment comparatively more favorable.
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.