Why is the tax based on assessed value, not market value?

Colorado taxes assessed value, which is market value multiplied by an assessment ratio. Residential property is assessed at about 6.7%, far below commercial at 29%. This keeps homeowner taxes lower than the headline market value suggests.

A mill is one-tenth of a cent, or $1 of tax per $1,000 of assessed value. Denver's combined mill levy across city, county, school, and special districts is roughly 74 mills, which equals about 0.074 of assessed value.

What is the senior homestead exemption?

Colorado exempts 50% of the first $200,000 of a qualifying senior's home value, up to a $100,000 reduction in actual value. Disabled veterans get the same benefit. This tool subtracts that exemption from market value before assessing.

Is the 0.55% effective rate accurate?

Roughly. Colorado's combination of a low residential assessment ratio and moderate mill levies produces an effective rate near 0.5 to 0.6% of market value, among the lowest in the US. The exact figure varies by year and district.

Does this replace my official tax bill?

No. It is an estimate using typical Denver figures. Your actual bill depends on the county assessor's valuation, the current year's assessment ratio, and the exact mill levy for your tax district.

Denver Property Tax Estimator

This estimator follows Colorado’s two-step property tax method: market value is first converted to assessed value using the statutory assessment ratio, then Denver’s mill levy is applied to that assessed value.

How it works

taxable value = market value − exemption
assessed value = taxable value × assessment ratio
annual tax     = assessed value × (mill levy / 1000)

Residential property uses an assessment ratio of about 6.7% and commercial uses 29%. Denver’s combined mill levy is roughly 74 mills. Multiplying a residential home’s full market value by these together yields an effective rate near 0.5%, which is why Colorado is a low-property-tax state.

Example and tips

A $500,000 Denver home assessed at 6.7% has an assessed value of $33,500; at 74 mills the annual tax is about $2,479 — an effective rate near 0.5% of market value. A qualifying senior subtracts up to $100,000 of value first, cutting the bill meaningfully. Because the residential assessment ratio is set by the state and changes periodically, treat the result as an estimate and confirm the current ratio and your district’s exact mill levy with the Denver assessor.