If you own a home in Colorado — or are in the process of buying one — property taxes deserve your attention right now. Bills are going up in 2026, in some cases significantly, and the reasons are not always easy to follow. Here is a plain-language breakdown of what changed, what it means for your budget, and what you can do about it.
Why Colorado Property Tax Bills Are Higher in 2026
Colorado reassesses all property values every two years, in odd-numbered years. The 2025 reassessment set the values that apply to both 2025 and 2026 tax bills. In many areas, home values held steady or continued to appreciate — and higher assessed values mean higher tax bills.
But there is a second factor at play. In 2024, Colorado passed temporary property tax relief that reduced residential property values by up to $55,000 for tax calculation purposes. That temporary relief has now expired. As a result, even homeowners whose property values did not increase are seeing larger bills — because the discount that reduced their 2024 assessment is gone.
The combined effect is significant. Across the Denver metro, many homeowners are seeing property tax increases of 20% to 40% compared to last year. For a home valued at $600,000, that could mean an additional $1,200 to $2,400 per year — or $100 to $200 more per month.
The New Rules: How Colorado Calculates Your 2026 Property Tax
Here is how the math works for 2026:
- Your county assessor determines your property’s actual value based on comparable sales in your area.
- For local government taxes (city, county, special districts), your actual value is reduced by 10%, up to a maximum reduction of $70,000. This is a new permanent exemption. A $600,000 home would have its value reduced to $540,000 for this calculation.
- That reduced value is then multiplied by the residential local government assessment rate of 6.95% to get your assessed value for local government purposes.
- For school district taxes, the rate is 7.05% and is applied to your full actual value — the $70,000 exemption does not apply to school taxes.
Your total property tax bill combines both. For most Denver metro homeowners, the effective combined rate works out to something in the range of 0.5% to 0.7% of their home’s market value annually — lower than the national average, but meaningful at Denver price points.
Can You Challenge Your Assessed Value?
Yes. Colorado allows homeowners to protest their property’s assessed value if they believe it is inaccurate. Notices of valuation are mailed by May 1 each year, and the deadline to file a protest is June 1. If you missed this year’s deadline, mark your calendar for 2027.
A successful protest requires evidence that your property’s value is overstated — typically comparable sales data for similar homes in your area. Your county assessor’s office can walk you through the process, and in many cases it can be done online.
What This Means for Buyers
If you are in the process of buying a home in Colorado, property taxes need to be part of your monthly payment calculation — not an afterthought. Ask your lender to include a current property tax estimate in your payment breakdown before you commit to a price range.
A few things to keep in mind as a buyer:
- Property taxes are typically paid through your mortgage escrow account, meaning they are spread into your monthly payment — but the amount can adjust each year as bills change.
- When evaluating a home, look up the most recent tax bill on the county assessor’s website, not just the listing agent’s estimate. Bills from 2023 or 2024 will understate 2026 costs.
- Tax rates vary meaningfully by county and municipality. A home in Jefferson County, Douglas County, or Adams County may have a different effective tax rate than a comparable home in Denver proper.
- New construction homes may be assessed based on land value only for the first year, then jump significantly once improvements are valued — plan for this if buying new.
What This Means for Sellers
Buyers are doing more homework on carrying costs than they were three years ago. When pricing your home, be aware that a high property tax bill relative to comparable properties can be a friction point in negotiations. Transparency up front — and a clear explanation of the $70,000 local government exemption — can help buyers understand the actual annual cost.
Final Thoughts
Colorado property taxes are complicated, and the 2026 changes have caught some homeowners off guard. The good news is the new permanent $70,000 exemption on local government taxes provides some ongoing relief. But for buyers especially, understanding what you will actually owe each year is essential to making a sound financial decision.
👉 Have questions about how property taxes affect your buying or selling decision in Denver? Reach out to the Living Colorado Team — John Wilkinson and Kenda Ruck can help you run the real numbers before you commit.
Suggested internal links:
Why the Housing Market No Longer Moves in Isolation | How Denver Sellers Should Adapt to Rate-Sensitive Buyers | Why Offer Strategy Has Changed in 2026