Colorado vs Tennessee
Colorado vs. Tennessee Property Taxes: A Data‑Based Comparison
Intro
Both Colorado and Tennessee are among the states that attract new homeowners because of relatively moderate property‑tax burdens. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property‑tax rate is slightly lower than Tennessee’s, which translates into modest annual tax savings for comparable home values.
Side‑by‑Side Comparison (2023 ACS)
| Metric | Colorado | Tennessee |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 0.55 % |
| Median home value | $502,200 | $256,800 |
| Median annual property tax | $2,448 | $1,400 |
| Property tax on a $250,000 home | $1,219 | $1,363 |
| Property tax on a $500,000 home | $2,438 | $2,726 |
| Median household income | $92,470 | $67,097 |
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
- Rate difference: 0.06 percentage points, which is a 10.58 % lower effective rate than Tennessee (0.49 % vs. 0.55 %).
- Annual tax difference on a $250k home: $144 less in Colorado ($1,219 vs. $1,363).
- Annual tax difference on a $500k home: $288 less in Colorado ($2,438 vs. $2,726).
The lower effective tax rate in Colorado means that, for identical home values, property‑tax liability is consistently lower than in Tennessee. The calculation is straightforward: the effective rate multiplied by the assessed value yields the tax amount, so a lower rate directly reduces the payable tax.
For more detailed state‑specific information see the internal pages: Colorado property tax and Tennessee property tax.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Tax Difference |
|---|---|
| Current homeowners | Knowing the effective rate helps estimate future tax bills, especially if considering a move or refinancing. |
| Prospective homebuyers | Lower tax rates can affect the total cost of ownership; Colorado offers a modest saving on comparable home prices. |
| Retirees and fixed‑income households | A lower annual property‑tax bill may ease budgeting constraints, though overall cost‑of‑living factors also matter. |
| Real‑estate investors | The tax rate influences cash‑flow projections; Colorado’s lower rate yields slightly higher net operating income for identical properties. |
The comparison is purely fiscal; it does not account for other variables such as state income taxes, sales taxes, or broader economic conditions. Users should weigh the property‑tax advantage alongside these additional factors when evaluating relocation or investment decisions.
Summary
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate of 0.49 % is lower than Tennessee’s 0.55 %, resulting in annual savings of $144 on a $250,000 home and $288 on a $500,000 home. The data suggest that Colorado imposes a lighter property‑tax burden for comparable home values, which may be particularly relevant for homeowners, prospective buyers, retirees, and investors seeking to minimize recurring tax expenses.
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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.