Colorado property tax is calculated by multiplying your home’s actual value by an assessment rate and then by the combined mill levy of every local district that taxes your property. For the 2026 tax year, residential property is assessed at 6.8% of actual value for local government taxes and 7.05% for school district taxes. Nonresidential property is assessed at 25% or 26%, depending on type. You pay in arrears, so the bill arriving in 2026 covers what you owed for 2025, and the full payment is due April 30 unless you split it into two installments.
How Your Bill Is Calculated
Three numbers decide what you owe: your property’s actual value, the assessment rate, and the local mill levy.
The county assessor sets your actual value through a reassessment cycle in odd-numbered years, using comparable sales data from an eighteen-month study period to estimate what your property would sell for on the open market. That value stays in place for two years unless you successfully protest it or make significant improvements.
The assessment rate converts market value into assessed value. Residential property is taxed at a much lower rate than commercial or agricultural land. The specific rates have shifted almost every year since 2022 because the legislature keeps adjusting them.
The mill levy is the tax rate itself. One mill equals $1 in tax for every $1,000 of assessed value. Your total mill levy is the sum of rates charged by every taxing district that overlaps your property: county, city, school district, fire, library, water, and any others. Each district sets its own levy based on its annual budget. Colorado’s Taxpayer Bill of Rights requires voter approval before any district can raise its rate, which limits how fast your bill can grow.1Colorado Department of Revenue. TABOR
2026 Assessment Rates
Starting in 2025, Colorado split the residential assessment rate into two tiers. For 2026, residential property is assessed at 6.8% of actual value for local government taxes and 7.05% for school district taxes.2Colorado Department of Local Affairs Division of Property Taxation. Understanding Property Taxes in Colorado
You will see two assessed values on your property records rather than one. On a home with an actual value of $500,000, the local government assessed value is $34,000 and the school district assessed value is $35,250. Each district’s mill levy applies to the matching assessed value, and the two results combine into your total bill.
Nonresidential property still uses a single assessment rate. For 2026, most nonresidential property is assessed at 26% of actual value, while improved commercial property and agricultural property are assessed at 25%.3Justia. Colorado Code 39-1-104 – Valuation for Assessment – Definitions
Payment Deadlines
Property taxes are collected in arrears. The bill you pay in 2026 covers your 2025 liability. Taxes become a lien on your property on January 1 of the year they’re due. You have two payment options:
- Two installments: First half due by the last day of February, second half due by June 15.
- Single payment: Full amount due by April 30.
These deadlines are set by C.R.S. § 39-10-104.5 and apply in every county.4FindLaw. Colorado Revised Statutes Title 39 Taxation 39-10-104.5 – Payment Dates Payments go to your county treasurer, not the assessor.
Most counties accept e-check payments online at no cost. Credit and debit card payments typically carry a convenience fee of about 2.4%. You can also pay by mail, in person, or by phone. If your mortgage lender escrows your taxes, the servicer handles payment on your behalf and is responsible for paying on time under federal law.
What Happens If You Pay Late
Missing a deadline triggers delinquent interest at 1% per month. Interest on a missed February installment starts March 1; a missed June 15 installment starts June 16; a missed single payment starts May 1 on the entire balance.4FindLaw. Colorado Revised Statutes Title 39 Taxation 39-10-104.5 – Payment Dates There is no grace period, and even one day late starts the clock.
Taxes that stay unpaid eventually go to a tax lien sale. An investor pays your delinquent taxes and receives a tax lien certificate. The investor does not get ownership of your property. You have a three-year redemption period to pay back the delinquent taxes plus 15% annual interest. If you redeem within that window, the investor is repaid and the lien is cleared. If you don’t redeem, the lienholder can apply for a treasurer’s deed, which is how properties are ultimately lost to tax debt.5FindLaw. Colorado Revised Statutes Title 39 Taxation 39-12-104 – Redemption of Real Property
The gap between a missed payment and losing the home is measured in years, not months. But the penalties compound quickly, and once a lien sells, catching up gets significantly more expensive.
Exemptions and Rebates That Lower Your Bill
Senior Homeowner Exemption
Colorado exempts 50% of the first $200,000 of actual value from taxation for qualifying seniors, so long as the state funds the program for the year. You must be at least 65 on January 1 of the application year and must have owned and occupied the home as your primary residence for at least ten consecutive years.6Justia. Colorado Code 39-3-203 – Property Tax Exemption – Qualifications Surviving spouses of previously qualifying seniors may also be eligible. The exemption is not automatic. You have to file an application with your county assessor.7Colorado Department of Local Affairs Division of Property Taxation. Property Tax Exemption for Senior Citizens in Colorado
Disabled Veteran and Gold Star Spouse Exemption
Veterans the U.S. Department of Veterans Affairs rates at 100% permanent disability get the same 50% exemption on the first $200,000 of actual value on their primary residence. Gold Star spouses (surviving spouses of service members who died in the line of duty or from a service-related condition) also qualify.8Colorado Division of Veterans Affairs. Property Tax Exemption If a qualifying veteran passes away, the surviving spouse can apply to continue the exemption. Both require a formal application through the county assessor or the Colorado Division of Veterans Affairs.9Colorado Department of Local Affairs Division of Property Taxation. Property Tax Exemption for Veterans with a Disability and Gold Star Spouses
Property Tax, Rent, and Heat (PTC) Rebate
Low-income seniors 65 and older, or surviving spouses 58 and older, may qualify for the PTC rebate, worth up to $1,178 per year. For the most recent program year, the income limit was $19,094 for single filers and $25,788 for married couples.10Colorado Department of Revenue. Property Tax/Rent/Heat Credit (PTC) Rebate One change for 2026: people with disabilities under 65 are no longer eligible for the PTC rebate and must instead file a Colorado income tax return to claim benefits under the new Disability Assistance Credit.11Colorado Department of Revenue. Changes Are Coming to the Popular Property Tax/Rent/Heat (PTC) Rebate Program
Deferral If You Can’t Pay Now
If you’re 65 or older and don’t qualify for an exemption, or you qualify but still struggle with the balance, Colorado’s property tax deferral program lets you postpone payment. This is not an exemption. It’s a loan from the state that covers your current taxes, with interest accruing until you repay it, typically when the home is sold or transferred.12Colorado Property Tax Deferral Program. Colorado Property Tax Deferral Program
Active-duty military members called to service on January 1 of the application year also qualify. Applications must be filed between January 1 and April 1 each year. Starting in 2026, county treasurers handle the application process, though the state’s online portal remains open during the filing window. You have to reapply every year to keep deferring, even if you choose not to defer in a particular year.
Protesting Your Valuation
If your assessed value looks too high, protest it. This is the single most effective way to lower your bill, and it costs nothing to file. The county assessor mails your Notice of Valuation by May 1 each year. The notice lists your actual value for the current assessment and usually includes a protest form or an online filing link.2Colorado Department of Local Affairs Division of Property Taxation. Understanding Property Taxes in Colorado
Your protest has to be postmarked or delivered no later than June 8. Miss that date and your right to protest is gone for the year, no matter how strong your evidence.13Justia. Colorado Code 39-5-121 – Notice of Valuation – Legislative Declaration – Definition – Repeal
The strongest protests are built on comparable sales from the same data period the assessor used. In a reassessment year, that’s the eighteen-month window ending the previous June 30. Pull homes in your neighborhood that sold during that window with similar square footage, lot size, age, and condition. If those homes sold for less than your assessed value, that’s your argument. You can also document physical problems the assessor may not have accounted for: foundation issues, outdated systems, flood damage, or anything else that would reduce what a buyer would pay. Most counties accept filings online, by mail, or in person.
If the Assessor Denies Your Protest
After reviewing your evidence, the assessor issues a Notice of Determination. If the value isn’t reduced enough, your next stop is the County Board of Equalization. You have to go through the Board before any higher-level option opens up. Once the Board mails its decision, you have 30 days to escalate: to the state Board of Assessment Appeals, to binding arbitration (which ends your right to further appeal), or to district court in the county where the property sits.14Colorado Judicial Branch. Property Tax Appeal Most homeowners find their answer at the assessor or Board of Equalization stage.
Buying or Selling: Proration at Closing
Because taxes are paid in arrears, proration at closing surprises many first-time buyers. The seller owned the property for part of the tax year, so at closing the seller credits the buyer for that share. The buyer then pays the full tax bill when it comes due the following year.
Colorado’s standard contracts prorate to, but not including, the closing date, using the actual day count. On a $3,650 prior-year bill with a May 1 closing (day 121), the seller owes 120 days of taxes, or $1,200, which shows up as a credit on the buyer’s closing statement. The current year’s bill hasn’t been set yet, so the proration is usually estimated from the prior year, and buyers should budget for the possibility that the actual bill comes in higher.
Federal Deduction for Colorado Property Taxes
You can deduct Colorado property taxes on your federal return as an itemized deduction, but only if you itemize instead of taking the standard deduction. The deduction covers only ad valorem property taxes, meaning taxes based on assessed value. Trash collection, water and sewer, HOA fees, and special assessments for local improvements like sidewalks or street repairs are not deductible.15Internal Revenue Service. Publication 530, Tax Information for Homeowners
The federal cap on state and local taxes (SALT), which includes property taxes, is $40,400 for the 2026 tax year for most filing statuses, and $20,200 for married couples filing separately. The cap begins phasing down for taxpayers with modified adjusted gross income above $505,000. These limits were set by the 2025 tax law and rise 1% each year through 2029. If your combined Colorado income tax and property tax already approaches or exceeds the cap, paying more property tax generates no additional federal deduction.