Colorado real estate: property tax, closing costs & insurance
Colorado has one of the lowest residential assessment ratios in the country (around 6.25–6.7% of value as of 2025) and a nominal $0.01 per $100 documentary fee rather than a real transfer tax, keeping acquisition costs light.
Property tax in Colorado
The effective rate runs about 0.49% of assessed value. Residential property is assessed at 6.7% of market value before that rate applies, so the millage number quoted locally is not applied to the full price. 2025 residential assessment rate 6.25–6.7%.
Transfer tax & closing costs
Doc fee $0.01/$100. Recording runs a flat $40. Title insurance is customarily paid by the seller, with a minimum owner’s premium of $400.
Insurance & capital gains
Hail + wildfire (WUI) surcharges. Flat 4.4%.
Worked example: a $350,000 ARV flip in Colorado
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$18,435
- Holding costs, 6 months−$2,452
- Target profit, 15%−$52,500
- Maximum Allowable Offer$225,738
If you’re investing
Colorado’s low assessment ratio can make its property tax look deceptively cheap on paper — wildfire (WUI) zone insurance surcharges and hail-belt premiums are where Front Range holding costs actually add up, so price insurance carefully rather than leaning only on the low tax rate.
If this is your home
The residential assessment ratio changes periodically by state action (it moved as recently as 2025) — confirm the current ratio with the county assessor rather than using a prior year’s figure for a multi-year projection.
Best suited for: Investors who want light property tax and closing costs but need to underwrite hail and wildfire insurance carefully.
Colorado FAQ
How is Colorado residential property assessed?+
Colorado assesses residential property at a fraction of its actual value — the ratio is set periodically by the state and was 6.25–6.7% for the 2025 tax year — then the local mill levy applies to that assessed figure.
See the exact number for your Colorado property
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Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works