Colorado Real & Personal Taxes

Colorado ranks among the top-10 states (10th) for best corporate tax system according to the Tax Foundation's 2021 State Business Tax Climate Index. Property Tax Assessment Rates Colorado property taxes have three main components: the actual value of property, the assessment rate, and the mill levy. Local assessors establish the actual value of the property and the property's classification (residential, commercial, or personal).

The Colorado Legislature determines assessment rates, and local taxing entities determine mill levies. The assessment rate for commercial and industrial property is set at 29% of market value. The residential rate is adjusted every odd-numbered year in order to maintain a balance between the tax burden on residential and all other properties. The residential assessment rate is 7.1% for 2017 assessments. The average mill levy in Metro Denver was 91.376 per $1,000 of assessed value in 2017.

Taxes - Real & Personal

Property Class
Assessment Rate & Method
Residential 7.2%*
Commercial 29%
Industrial 29%
Personal 29%
Mixed-Use 7.2% for residential proportion, 29% for commercial
Vacant Land 29%
Oil and Gas Leaseholds and Lands (Primary Production) 87.5% of oil or gas sold or transported from premises, with modifications
Oil and Gas Leaseholds and Lands (Secondary Production) 75% of oil or gas sold or transported from premises, with modifications
State Assessed Property 29%
Exempt Property Assessed at appropriate rate, but not taxed
*Residential assessment rate fluctuates from year-to-year

Business Real Property

For tax years 2017 and 2018, Colorado's business personal property tax exemption is $7,400 or less. The exemption increases biennially to account for inflation. Colorado cities, counties, and special districts can fully waive their portions of the business personal property tax for qualifying companies. 

Personal property (machinery and equipment) used in commercial and industrial operations is also assessed at 29% of actual value, based on replacement cost, expected economic life of the asset, and other factors. Business personal property with an economic life of one year or less, or with acquisition cost of $350 or less, is exempt from taxation. Computer and telecommunications equipment have accelerated depreciation schedules and reduced residual values.

Related Files 1 Reports
Taxes & Incentives
Property Tax Levies