Denver Taxes

Denver enjoys a relatively low tax exposure compared to other cities of comparable size. Colorado residents are responsible for property and personal income taxes.

Property Tax
All property in Colorado, except what is legally exempt, is subject to property tax by local districts. The state government does not levy a property tax. The product of the mill levy (dollars of tax per $1,000 of assessed valuation) and the assessed valuation of the property determines the tax owned. Local taxing entities such as county commissioners and school boards set the mill levy. The county assessor sets the assessed valuation of each piece of property.

Individual Income Tax
Colorado has adopted a “flat tax” structure that greatly simplifies the determination of Colorado income tax liability. The individual income tax rate is five percent of federal net taxable income.

Vehicle Sales Tax and Licensing
You must license all vehicles within 90 days of establishing residency in Colorado. The license and owner’s tax fee is based on the vehicle’s age and value (A newer model, valued at $20,000 might cost approximately $400 in owner’s tax plus $25 in licensing fees to register) To title a vehicle, you must show proof that sales tax was paid, or you will be charged 3% state sales tax as well as the additional city and/or county taxes for the area in which you reside in Colorado. Additionally, you will need to provide proof your vehicle has passed the state emission test at time of licensing. There are tax issues associated with most relocation. We recommend you consult a tax professional relating to your tax liabilities, if any.