Tax Hikes Leave Colorado Homeowners Shocked

Mike Fitts, a 76-year-old resident of Centennial, has owned his home since 2001. Two years ago, he paid $3,876.98 in property taxes to Arapahoe County. Recently, he discovered that his tax bill for 2026 had surged to $5,435.47, even after applying a $750 discount from the Senior Homestead Exemption.

This increase represents almost 30%, or over $1,500, which is significant, especially for someone on a fixed income like Fitts, who relies on Social Security and a pension from Gates Labor.

Fitts is not alone; many homeowners in Colorado are grappling with similar situations. Property taxes are climbing, with some areas experiencing increases between 20% and over 40%.

For several homeowners, this means tax increases exceeding $1,000 within the past two years.

Fitts and countless others are facing these skyrocketing taxes due to changes in property tax legislation from the 2022 and 2024 sessions.

In 2022, Senate Bill 22-238 was enacted, which aimed to lower property tax assessment rates and reduce residential property tax assessments by $15,000 for the 2023 and 2024 years.

Most of the savings from reduced property taxes go to the state, which then distributes the funds to counties and local services like fire and police departments, hospitals, and schools.

Then, in 2024, Senate Bill 24-233 increased the assessed value discount to $55,000 in hopes of solving what Governor Jared Polis described as the “property tax war.”

However, these legislative measures are intended only as short-term relief.

The discounts expired on January 1 for property taxes assessed in 2025, leading to steep increases in tax bills for nearly everyone.

Boulder County Assessor Cindy Braddock mentioned that she hasn’t yet heard from local residents, but anticipates a flurry of inquiries once the tax bills are sent out. “They’re coming,” she noted.

Braddock indicated that some homeowners could see their taxes rise, even if property values remain relatively stable.

Manufactured home owners may feel the pinch particularly hard. The new legislation means that properties below the $55,000 threshold could see a significant reduction in taxes, with some potentially exempted entirely.

For instance, a one-bedroom manufactured home can typically sell for around $60,000. As for existing homes, a property valued at $100,000 would have paid about $275 in 2024, but is expected to double to $550 in 2025.

Braddock emphasized that the removal of the $55,000 adjustment would impact many, especially those in manufactured housing, whose tax bills might revert to prior, higher amounts.

“Property taxes can seem complicated,” she said, aiming to make the process clearer and less stressful for residents. “We are here to help you understand your information and your options.”

There are indeed options for relief, according to Braddock. For one, homeowners can connect with their county treasurer about state-offered tax deferral programs. Another option is appealing a home’s appraised value.

Braddock cautioned, however, that the relief might only be temporary. She mentioned that if certain provisions from HB 24-1001 are enacted, property taxes for 2026, due in 2027, could potentially be lower—a ten percent reduction is expected on assessed values up to $700,000.

Yet, the effectiveness of this plan depends on how assessments change and whether new taxes are introduced.

As for legislative efforts, currently, state lawmakers have not prioritized addressing the surging property tax bills. While there are a couple of proposed bills, none focus on residential property tax rates.

Fitts, feeling perhaps that he has one of the highest tax increases in his city, hasn’t received his official notice yet—his knowledge comes from online data.

He also owns a townhome in Vail, which he learned would see a tax increase of around $600. Although he understands the rationale behind “taxing the wealthy,” he’s troubled by the burden on property owners.

“I’ve owned this property for a long time,” he shared, recalling his purchase in 2001 for about $240,000, which felt expensive at the time. “I’m not a wealthy person. Gratitude makes me look like one, but I’m not,” he said, visibly upset by the recent tax news.

He’s planning to appeal, feeling frustrated that his tax burden keeps rising for reasons he can’t grasp.

As of 2025, Colorado maintains some of the lowest property tax rates in the nation, but escalating home prices—averaging around $502,200—mean overall property taxes aren’t necessarily lower compared to other states.