Colorado vs Vermont
Property‑Tax Comparison: Colorado vs. Vermont
Summary – Both states levy property taxes based on the assessed value of real‑estate, but the rates and resulting tax bills differ markedly. Using the latest data from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), Colorado’s effective property‑tax rate is substantially lower than Vermont’s, leading to lower annual tax payments for comparable home values.
Side‑by‑Side Metrics
| Metric | Colorado | Vermont |
|---|---|---|
| Effective property‑tax rate | 0.49 % | 1.71 % |
| Median home value | $502,200 | $290,500 |
| Median annual property tax | $2,448 | $4,956 |
| Tax on a $250,000 home | $1,219 | $4,265 |
| Tax on a $500,000 home | $2,438 | $8,530 |
| Median household income | $92,470 | $78,024 |
Source: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property‑Tax Burden?
Winner (lower tax rate): Colorado
- Rate difference: Colorado’s effective rate of 0.49 % is 1.22 percentage points lower than Vermont’s 1.71 % (a 71.42 % relative difference).
- Annual tax difference for a $250k home: $4,265 – $1,219 = $3,046.
- Annual tax difference for a $500k home: $8,530 – $2,438 = $6,092.
Because the tax burden is calculated as a percentage of assessed value, the lower rate in Colorado translates directly into smaller yearly payments for homeowners at any price point. For readers interested in more detail, see the dedicated pages on Colorado property tax and Vermont property tax.
Who May Find This Comparison Most Relevant?
| Audience | Relevance of Colorado’s Lower Rate | Relevance of Vermont’s Higher Rate |
|---|---|---|
| Current homeowners | Lower ongoing costs can improve cash flow and reduce total cost of ownership. | Higher annual taxes may affect budgeting and long‑term affordability. |
| Prospective homebuyers | A lower tax rate can make higher‑priced homes more affordable on a net‑cost basis. | Buyers must account for a larger tax component when evaluating total housing costs. |
| Retirees on fixed incomes | Reduced property taxes help preserve limited income for other expenses. | Higher taxes may require larger reserves or a higher income to maintain the same standard of living. |
| Investors (rental properties) | Lower property taxes can increase net operating income and overall return on investment. | Higher taxes reduce net cash flow, potentially affecting profitability calculations. |
The data are purely descriptive; they do not account for other fiscal factors such as state income taxes, sales taxes, or local service fees, which may also influence overall cost of living decisions.
Key Takeaway
Based on the most recent ACS estimates, Colorado’s effective property‑tax rate of 0.49 % is considerably lower than Vermont’s 1.71 %, resulting in annual tax savings of $3,046 on a $250,000 home and $6,092 on a $500,000 home. Stakeholders whose budgets are sensitive to property‑tax expenses—such as homeowners, retirees, and real‑estate investors—may find Colorado’s tax environment more favorable from a purely property‑tax perspective.
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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.