Taxes in COS

All about taxes in Colorado Springs (COS)! Colorado Springs is considered a very low tax area of the country to live, especially compared to other major cities. Our taxes are paid in several pieces:

  1. State Income Taxes – The state income tax rate is 4.63% for 2018. It is primarily based on your Federal taxable income, so the state tax form is very simple to complete. Pretty much anything that is deductible for Federal taxes is also deductible for state purposes. For more information see the Colorado Department of Revenue web site.
  2. Sales Taxes – In the Colorado Springs area, sales tax is 8.25%.
  3. Property Taxes – Property taxes vary a lot based on where you live. Property taxes are the main source of revenue for schools in Colorado. GENERALLY, we plan for property taxes to be roughly 0.75% of the market value of the home. This is higher in certain areas where Special Improvement districts exist (such as Flying Horse Ranch, where the planning figure is closer to 1.25%) and lower in some of the older sections of the city (particularly in school district 11), where the figure is often closer to 0.5%. Because valuation is not precise and tax rates vary significantly, the only way to know for sure what taxes will look like is to check the assessors office information for a specific property.

TABOR

Colorado enacted something called the Taxpayers Bill of Rights (TABOR) in 1992 that severely limits the ability of government at any level to raise taxes without taxpayers voting on it. TABOR has forced a significant level of discipline into local government spending, although it has also forced some very difficult decisions during hard economic times. Essentially, voters must approve all tax increases and the bill provides a cap on the amount of revenue that can be retained and spent.

9 thoughts on “Taxes in COS

  • September 2, 2021 at 6:05 am
    Permalink

    We are considering moving to COS. The taxes one the homes are around $25kper year for a $379,000 house, What in the world???That is over $2000/mo just for taxes! Why???? Is there any relief for retired people on a fixed income?

    Reply
    • September 7, 2021 at 12:59 pm
      Permalink

      Hi Kristina,

      I don’t think that is the correct quote for taxes on a home in Colorado Springs. To calculate your property taxes, you will need to use this formula:
      Calculating Your Assessed Value
      & Estimated Taxes
      $150,000 (Market Value) x .0715 (Current Residential Assessment Rate) =

      $10,720 (Assessed Value)

      then:

      $10,800 (Assessed Value) x .054454 (Mill Rate) = $583.74 (Estimated Taxes Due)

      For more information, please visit the El Paso County Assessor Website where you can type in a property address to get its tax rate: https://assessor.elpasoco.com/residential-real-estate/

      Typically, homes around $350k will run about $1200/year in taxes, give or take depending upon the area (some areas have much higher tax rates). Hope this helps!

      Reply
    • September 7, 2021 at 1:00 pm
      Permalink

      Also, here is the exemption for qualifying seniors:

      The Deadline to apply for tax year 2021 payable in 2022 is July 15th!

      In November 2000, Referendum A, also known as the Senior Homestead Exemption Act, was approved as an addition to the Colorado Constitution. The Act took effect as of January 1, 2002, for property taxes payable in 2003 and will remain in effect every year hereafter. Specifically, the Act grants an exemption (reduction) up to one-half of the first $200,000 in market value from property taxes for a qualifying residential owner, if funding is available.

      Reply
  • April 29, 2021 at 12:08 pm
    Permalink

    If I relocate to Colorado Springs while telecommuting to a job in California, will I have to pay Colorado income tax as well as California income tax?

    Reply
  • June 20, 2019 at 10:53 am
    Permalink

    the accessor link is not working. How can I use the mil levy to figure property taxes for the year?

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *