Compare taxes and see how much you save moving from Colorado to Texas
Colorado has dramatically lower property taxes than Texas — 0.51% average effective rate versus Texas at 1.60%. On a $600,000 home, Colorado saves approximately $6,540/year compared to Texas. This difference stems from Colorado's TABOR (Taxpayer's Bill of Rights) amendment and the legacy of the Gallagher Amendment, which historically kept residential assessment ratios low. However, Texas has no state income tax while Colorado charges a flat 4.40%. For middle-income earners, Texas's income tax advantage partially offsets the property tax gap. High earners with expensive homes typically pay less in Colorado overall.
Avg Effective Rate
Among the lowest in the US; TABOR and Gallagher legacy keep rates low
Avg Effective Rate
No income tax; high property tax funds local services and schools
At $600,000 home income:
Colorado saves on property tax
| Income | CO Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $400,000 home | $2,040 | $6,400 | $4,360 | $43,600 |
| $600,000 home | $3,060 | $9,600 | $6,540 | $65,400 |
| $800,000 home | $4,080 | $12,800 | $8,720 | $87,200 |
| $1,000,000 home | $5,100 | $16,000 | $10,900 | $109,000 |
| $1,500,000 home | $7,650 | $24,000 | $16,350 | $163,500 |
| $2,000,000 home | $10,200 | $32,000 | $21,800 | $218,000 |
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Get Matched With a CPA →Colorado's low property tax stems from two historical mechanisms: (1) The Gallagher Amendment (1982–2020) required residential assessment ratios to stay at ~7.2% of actual value — meaning tax was levied on only 7.2% of market value. Though Gallagher was repealed in 2020, assessment ratios have since been set by legislature, generally staying at 6.765% for residential property. (2) TABOR (Taxpayer's Bill of Rights, 1992) limits growth in government spending and revenue, constraining millage rate increases. Texas has no such structural constraints and relies heavily on property tax to fund education with no income tax alternative.
It depends on income and home value. For a household earning $100,000 with a $600,000 home: Colorado property tax ~$3,060 + income tax ~$4,400 (4.40% flat) = ~$7,460. Texas property tax ~$9,600 + income tax $0 = $9,600. Colorado wins by ~$2,140. For the same household with a $300,000 home: Colorado ~$1,530 + $4,400 = $5,930. Texas ~$4,800 + $0 = $4,800. Texas wins by ~$1,130. The crossover typically occurs around $400,000–$500,000 in home value for middle-income earners — above that, Colorado's dramatically lower property tax generally wins.
Colorado's low property tax rate significantly reduces the ongoing cost of Denver homeownership relative to the purchase price — making expensive homes more affordable on an annual basis than in Texas or Illinois. A $1M Denver home costs approximately $5,100/year in property tax; the same value home in Houston would cost $16,000/year. This low annual burden partly explains why Denver home prices have risen significantly relative to incomes — buyers can afford higher purchase prices when carrying costs are low. However, rising home values mean higher absolute dollar tax bills even at the low rate.
Both states attract tech workers, but for different reasons. Colorado (Denver/Boulder): lower property tax on expensive homes; excellent outdoor lifestyle; strong tech/startup scene; 4.40% flat income tax; home to many aerospace, clean energy, and tech companies. Texas (Austin/Dallas): no income tax is a major draw for high earners; Austin's tech scene (Apple, Tesla, Oracle, Dell); lower home prices in suburban areas; but high property tax on homes. For a remote tech worker earning $200,000 with a $900,000 home: Colorado owes ~$8,800 income tax + ~$4,590 property tax = $13,390. Texas: $0 income tax + $14,400 property tax = $14,400. Colorado is marginally cheaper overall at this income and home value combination.