FORT COLLINS HOUSING INSIDER

Why Property Taxes Are Rising for Some Colorado Homeowners

Property taxes are becoming a growing topic of discussion for homeowners across Colorado, including in Fort Collins. While the state’s property tax system differs from many others, rising home values in recent years have pushed tax bills higher for some property owners.

In Colorado, property taxes are largely based on a home’s assessed value, which is determined by county assessors using market data from previous years. When home prices increase significantly, those higher values can eventually lead to higher assessed values—and higher property taxes.

Over the past decade, Colorado has seen substantial growth in home prices, particularly along the Front Range. Northern Colorado communities like Fort Collins experienced strong price growth during the pandemic housing boom between 2020 and 2022, when demand for housing surged nationwide.

Because assessments rely on past market values, tax increases can sometimes occur even after the housing market begins to slow down. In other words, tax bills often reflect the price growth from earlier years rather than current market conditions.

Colorado does have several mechanisms designed to limit property tax increases. One of the most important is the assessment rate, which determines what percentage of a property’s value is taxable. The state has adjusted this rate over time in an effort to reduce the impact of rapidly rising home values on homeowners.

Additionally, voters approved statewide property tax relief measures in recent years that temporarily lowered assessment rates and provided partial exemptions for primary residences.

However, even with these adjustments, many homeowners across Colorado have still seen increases in their property tax bills due to the large rise in property values during the past several years.

What This Means for Homeowners

For homeowners in Fort Collins, property taxes are one part of the broader cost of homeownership alongside mortgage payments, insurance, and maintenance.

Because tax assessments are tied to home values, future property tax changes will largely depend on how housing prices evolve across the region in the coming years.

As the housing market stabilizes after the pandemic boom, property tax growth may also begin to slow—but assessments will continue to reflect long-term trends in the local real estate market.

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