The Property Tax Picture in Mountain Colorado
Property taxes don't get as much attention as mortgage rates and home prices, but they should. They're a significant ongoing cost that varies quite a bit depending on which county—and sometimes which specific town—you buy in. Let's break down what you'll actually pay.
How Colorado Property Taxes Work
Colorado uses a residential assessment rate (currently 6.765% of actual value for 2025-2026) and mill levies that vary by location. A mill levy is basically dollars per thousand of assessed value. Different taxing districts (county, school district, fire district, etc.) all add their own mill levies, and that's what determines your total tax bill.
Eagle County (Vail, Avon, Edwards)
Eagle County generally has moderate property taxes. For a $800,000 home in Vail, you're looking at roughly $7,000-$8,500 annually depending on your specific district. That's an effective tax rate around 0.9-1.0%.
The Town of Vail has its own additional mill levy for services, so properties within town limits pay a bit more than unincorporated Eagle County areas.
Summit County (Breckenridge, Frisco, Keystone, Silverthorne)
Summit County has higher property taxes than most Colorado mountain counties. That same $800,000 property in Breckenridge might cost you $10,000-$11,000 annually—closer to a 1.3-1.4% effective rate.
Why higher? Summit has invested heavily in services, open space acquisition, and infrastructure. You're paying for those amenities. Whether it's worth it depends on your priorities.
San Miguel County (Telluride, Mountain Village)
Telluride/San Miguel County falls somewhere in between. An $800,000 property might run $8,000-$9,500 annually, around 1.0-1.2% effective rate. Mountain Village, which is technically in San Miguel County but a separate municipality, has its own additional levies.
Routt County (Steamboat Springs)
Routt County property taxes are relatively moderate. Figure roughly 0.9-1.1% effective rate for properties in and around Steamboat Springs. The city of Steamboat has slightly higher rates than unincorporated Routt County.
Boulder County
Boulder County's mountain areas (Nederland, Eldora, Gold Hill) have higher property taxes than most resort counties—often 1.2-1.5% effective rates. This is because Boulder County funds more services through property taxes compared to sales tax or other revenue sources.
What About Reassessments?
Colorado reassesses property values every two years. If home values have risen (which they have consistently in most mountain markets), your assessed value goes up and so does your tax bill—even if mill levies stay the same.
The 2025-2026 assessment cycle is using 2024 property values, which were elevated. Many mountain property owners have seen tax increases of 15-25% from the previous cycle. It's not a tax rate increase—it's reassessment reflecting higher property values.
Senior and Veterans Exemptions
If you're a senior (65+) and meet income requirements, you might qualify for Colorado's senior property tax exemption, which reduces the first $200,000 of value from taxation. Veterans with service-connected disabilities can also get exemptions. These are worth pursuing if you qualify.
How This Affects Your Mortgage Qualification
Property taxes are escrowed into your monthly mortgage payment, and they count toward your debt-to-income ratio. The difference between $600/month in Summit County and $450/month in Eagle County might seem small, but over 30 years it's a $54,000 difference.
Your lender will estimate property taxes when calculating your payment and DTI. Make sure they're using accurate numbers for your specific property location—don't let them use state averages or you might be unpleasantly surprised after closing.
The Bottom Line
When you're comparing properties across different mountain towns, factor in the property tax differences. A $750,000 home in Breckenridge might cost you more monthly than an $800,000 home in Vail once you account for taxes.
Also remember that property taxes are deductible on your federal return (up to $10,000 total for state and local taxes). In high-tax states that doesn't help much, but in Colorado where property taxes are relatively moderate, most people aren't hitting the SALT cap.
Want to see total monthly cost comparisons for properties you're considering? We can break down the full payment including taxes, insurance, and HOA for any property you're looking at.
