Denver County tax rates cover five main local levies. Property tax runs at a combined mill levy of roughly 79.202 mills applied to an assessed value equal to 6.8 to 7.05 percent of a home’s actual value. City sales tax sits at 5.15 percent (9.15 percent once state and district taxes are added). The occupational privilege tax takes $5.75 a month from qualifying workers, plus $4.00 from the employer. Short-term lodging is taxed at 10.75 percent, and admission to events at city-owned venues at 10 percent. Denver’s consolidated city-county government administers all of them.
Property Tax Rates in Denver
Three numbers determine a Denver property tax bill: actual value, assessment rate, and mill levy.
Actual value is what the Assessor’s Office estimates your parcel would sell for. Colorado reassesses real property every odd-numbered year using recent sales of comparable properties.1Colorado Department of Local Affairs Division of Property Taxation. Understanding Property Taxes in Colorado For commercial or income-producing property, the assessor may also look at rental income and replacement cost.
The assessment rate converts that actual value into the taxable “assessed value.” For the 2026 tax year, residential property is assessed at 6.8 percent of actual value for local-government levies and 7.05 percent for the school-district portion. Commercial and industrial property is assessed at 25 to 26 percent, depending on classification.1Colorado Department of Local Affairs Division of Property Taxation. Understanding Property Taxes in Colorado The split residential rate is a quirk of Colorado law that catches homeowners trying to estimate their own bills.
A mill equals one dollar of tax per $1,000 of assessed value.2Assessors’ Library. Chapter 4 – Assessment Math Denver’s combined general mill levy sits at about 79.202 mills, stacked from several taxing entities:
- City and County of Denver: about 25.9 mills, covering the general fund, bond repayment, social services, fire and police pensions, capital maintenance, affordable housing, and libraries.
- Denver Public Schools (District No. 1): about 52.3 mills, the largest single component.
- Urban Drainage and Flood Control District: 1.0 mill.
To estimate the bill, multiply assessed value by the total mill levy expressed as a decimal. A home with an actual value of $500,000 has a local-government assessed value of $34,000 (6.8 percent of $500,000). At roughly 79 mills, that works out to about $2,686 a year. The school-district share uses the slightly higher 7.05 percent assessment rate, so the actual bill is a blended calculation, but this gives you a reasonable ballpark.3City and County of Denver. Abstract of Assessment and Summary of Levies
Payment Deadlines
Property tax bills come with three deadline options:
- Full payment: due April 30.
- First-half installment: due the last day of February.
- Second-half installment: due June 15.
If a deadline falls on a weekend or holiday, it moves to the next business day.4City and County of Denver. Pay Property Taxes Payments go through denvergov.org (e-check at no charge, credit or debit card with a processing fee), by mail to the Denver County Treasurer, or in person at the Wellington Webb Municipal Building, 201 W. Colfax Ave., weekdays 8:00 a.m. to 4:30 p.m.5City and County of Denver. Property Tax – City and County of Denver
What Late Payment Costs
Miss the first-half deadline and your account becomes delinquent on March 1, with interest accruing at 1 percent per month on the unpaid balance. If the taxes stay unpaid long enough, the city sells the lien at its annual tax lien sale, and the redemption rate climbs. Certificates sold at the November 2025 auction carried a 14 percent annual rate (roughly 1.167 percent per month), set by a formula that adds 9 percentage points to the Federal Reserve discount rate.6City and County of Denver. Real Estate Delinquent Taxes and Tax Lien Sale
Property Tax Exemptions
Two Colorado exemptions reach Denver homeowners. Both shelter 50 percent of the first $200,000 of actual value, meaning up to $100,000 of a home’s value escapes taxation when the state funds the exemption.
Senior Homestead Exemption
For the 2026 tax year, you must have been born on or before January 1, 1961 (age 65 or older), and you must have owned and occupied the home as your primary residence continuously since January 1, 2016, or earlier. A surviving spouse of someone who qualified can also claim it, even without meeting the age threshold, as long as the spouse hasn’t remarried and still lives in the same home.7Colorado Department of Local Affairs Division of Property Taxation. Property Tax Exemption for Senior Citizens in Colorado
Disabled Veteran Exemption
Veterans with a qualifying VA-approved disability rating get the same 50 percent exemption on the first $200,000 of actual value. There’s no age requirement, but you must have owned and occupied the home as your primary residence on or before January 1, 2026.8Colorado Department of Local Affairs Division of Property Taxation. Senior Citizen and Veterans with a Disability Property Tax Exemption
Denver Sales and Use Tax
Denver’s city sales tax rate is 5.15 percent, which includes the general 4.81 percent levy plus voter-approved additions. Combined with state and district taxes, the total most shoppers pay is 9.15 percent:
- Denver city: 5.15 percent
- State of Colorado: 2.9 percent
- Regional Transportation District: 1.0 percent
- Scientific and Cultural Facilities District: 0.1 percent
Those rates sit on top of each other on taxable purchases.9City and County of Denver. Business Taxes
What’s Exempt
Groceries and unprepared food for home consumption are exempt from Denver’s city sales tax, as is food paid for with SNAP benefits or WIC vouchers. Prescription drugs and certain medical items are also exempt. Prepared food, hot food sold for immediate consumption, cold sandwiches, deli trays, and vending-machine purchases remain fully taxable.10City and County of Denver. Exemption for Certain Food The line between exempt groceries and taxable prepared food trips up shoppers and retailers both.
Use Tax on Out-of-State Purchases
If you buy equipment, furniture, or supplies from an out-of-state seller that doesn’t collect Denver’s tax, you owe the equivalent rate directly to the city. Denver credits sales or use tax you already paid elsewhere on the same purchase. If the combined rate you paid outside Denver equals or exceeds 8.81 percent, no additional Denver use tax is due; if it was less, Denver collects the difference up to its 4.81 percent general rate.11City and County of Denver. Reduction Allowed for Previously Paid Sales or Use Taxes This matters most for businesses ordering inventory or equipment online.
Occupational Privilege Tax (Head Tax)
Denver’s Occupational Privilege Tax, commonly called the head tax, hits anyone who works within city limits for even part of a month. Earn at least $500 in a calendar month from all Denver sources combined (wages, tips, commissions, bonuses), and you owe $5.75 for that month. Your employer owes an additional $4.00 per qualifying employee. The employer withholds the $5.75 from your paycheck and remits both portions.12City and County of Denver. Business Tax FAQs
The $500 threshold applies to all Denver-sourced earnings combined, not per employer. Two Denver part-time jobs that add up to more than $500 in a month mean both employers must withhold. Self-employed people working in Denver pay both the employee and employer portions.
Lodger’s Tax on Short-Term Rentals
Rent out a Denver property for fewer than 30 consecutive days and the stay is subject to a 10.75 percent lodger’s tax on the purchase price. The tax covers hotels, motels, bed-and-breakfasts, and short-term rentals listed on platforms like Airbnb or Vrbo.13City and County of Denver. Tax Guide Topic 97 – Short-Term Rentals
Who collects and remits depends on the booking. If a platform processes payment and shows as merchant of record on the guest’s statement, the platform handles the tax. If you book directly, or if the platform doesn’t qualify as a vendor under Denver’s rules, you collect the lodger’s tax from guests and remit it yourself. Anyone listing a short-term rental in Denver must register with the Treasury Division.
Other Denver Taxes
A few additional levies apply depending on the business or activity:
- Facilities Development Admission Tax: 10 percent on tickets to entertainment, sporting, or other events at city-owned venues. It does not apply to city-run attractions like the Denver Zoo or Botanic Gardens, nor to events whose performers are unpaid amateurs.14City and County of Denver. Facilities Development Admission Tax
- Telecommunications Business Tax on businesses providing telecom services within the city.
- E-911 Emergency Telephone Charge, a separate charge tied to emergency telephone service.
All of these, along with sales, use, lodger’s, and occupational privilege taxes, run through Denver’s eBiz Tax Center. Denver no longer charges a license fee for the biannual retailer’s sales, use, and lodger’s tax license.9City and County of Denver. Business Taxes
Federal Deduction Limits
Denver property taxes and Colorado income tax are deductible on your federal return if you itemize, but the state and local tax (SALT) deduction is capped at $40,000 for most filers ($20,000 if married filing separately). Anything above that gives no federal benefit, and the cap phases down for taxpayers with modified adjusted gross income above $500,000.15Internal Revenue Service. Topic No. 503, Deductible Taxes For Denver homeowners with higher-value properties and significant state income tax, the SALT cap is often the binding constraint. If your total SALT falls well under $40,000, itemizing still only pays off when all your deductions together clear the standard deduction.