Colorado vs South Dakota
Property‑Tax Comparison: Colorado vs. South Dakota
Intro
Both Colorado and South 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 lower than South Dakota’s, which results in lower annual taxes for comparable home values. The following tables and analysis present the key metrics side‑by‑side and identify which state has the lower tax burden.
Side‑by‑Side Comparison Table
| Metric | Colorado | South Dakota |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 1.09 % |
| Median home value | $502,200 | $236,800 |
| Median annual property tax | $2,448 | $2,590 |
| Property tax on a $250,000 home | $1,219 | $2,735 |
| Property tax on a $500,000 home | $2,438 | $5,469 |
| Median household income | $92,470 | $72,421 |
| Colorado property tax | ||
| South Dakota property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State Wins on Property‑Tax Rate?
Winner (lower tax rate): Colorado
- Tax‑rate difference: 0.61 percentage points, which is a 55.43 % lower rate than South Dakota’s (0.49 % vs. 1.09 %).
- Annual tax difference on a $250 k home: $1,516 less in Colorado ($1,219 vs. $2,735).
- Annual tax difference on a $500 k home: $3,031 less in Colorado ($2,438 vs. $5,469).
Because the effective rate is the primary driver of property‑tax liability, Colorado consistently yields lower annual taxes for identical home values.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of Lower Property Tax |
|---|---|
| Current homeowners | Reduced annual out‑of‑pocket costs if they own a home valued at $250 k–$500 k. |
| Prospective homebuyers | Lower ongoing tax burden can improve affordability calculations, especially in higher‑priced markets. |
| Retirees | Fixed‑income households may prefer the lower recurring tax expense, although other factors (e.g., state income tax, cost of living) also matter. |
| Investors | Lower property‑tax rates can increase net operating income for rental properties. |
| Policy analysts | The data illustrate how differing tax structures affect household financial obligations across states. |
The comparison is purely fiscal; it does not address other considerations such as state income taxes, sales taxes, or broader cost‑of‑living differences.
Summary
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate of 0.49 % is substantially lower than South Dakota’s 1.09 %. This translates to consistently lower annual taxes for comparable home values, making Colorado the “winner” when the metric is the property‑tax rate alone. Stakeholders such as homeowners, prospective buyers, retirees, and real‑estate investors can use these figures to assess the relative tax burden in each state.
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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.