Buying or owning a home in Colorado Springs? Property taxes can be one of the trickiest parts of your budget. Between assessed value, mill levies, and special districts, it is easy to overestimate or underestimate what you will owe. This guide explains how taxes are set in El Paso County, how to estimate your annual bill and monthly escrow, what to expect at closing, and how to appeal if you disagree with your valuation. Let’s dive in.
How Colorado Springs property taxes work
Assessor value and assessment rate
Your tax calculation starts with market value. The El Paso County Assessor estimates your home’s market value for the tax year. Colorado then applies a statewide residential assessment rate to that value to produce your assessed value. The assessment rate is set by state law and can change, so always confirm the current rate before you estimate.
Mill levies and special districts
A mill levy is the tax rate set by each taxing authority that serves your property, such as the county, City of Colorado Springs, school district, fire protection, water, and other special districts. A mill equals one dollar of tax for every $1,000 of assessed value. Many neighborhoods are in one or more special districts that add mills to fund services or bonds. These district mills can materially change your bill, so check which districts apply to your parcel.
The simple tax formula
- Assessed value = Market value × Assessment rate
- Property tax = Assessed value × (Total mill levy ÷ 1,000)
For apples-to-apples comparisons, you can use an effective tax rate:
- Effective tax rate ≈ Assessment rate × (Mill levy ÷ 1,000)
Use the current assessment rate and the exact total mill levy for your address to get a reliable estimate.
Step-by-step: estimate your tax bill
Five quick steps
- Get a market price estimate for the home. You can use a recent sale price, a listing price, or a comparative market analysis.
- Confirm Colorado’s current residential assessment rate. Multiply market value × assessment rate to find assessed value.
- Look up the total mill levy for your property’s address through El Paso County tax records. Be sure to include all applicable districts.
- Calculate annual taxes: Assessed value × (Total mill levy ÷ 1,000).
- For monthly budgeting, divide by 12. If you use escrow, your lender will collect this amount each month along with homeowners insurance.
Example with placeholders
- Market value = P
- Assessment rate = r (decimal)
- Total mill levy = M (mills)
- Assessed value = P × r
- Annual tax = (P × r) × (M ÷ 1,000)
- Monthly budget = Annual tax ÷ 12
Common estimating mistakes
- Using an average county mill levy instead of the levy for your parcel.
- Forgetting that the assessment rate can change.
- Missing special district mills or new voter-approved levies.
- Assuming assessed value always equals today’s sale price. Assessments may use a valuation date that lags the current market.
Where to find your numbers
Local and state offices
- El Paso County Assessor: parcel values, assessment notices, exemptions, and informal review steps.
- El Paso County Treasurer: tax bills, payment options, schedules, and parcel tax history.
- El Paso County Clerk & Recorder and local district pages: special district boundaries and bond information.
- Colorado Department of Local Affairs: statewide property tax guidance and assessment rate details.
- Colorado Department of Revenue or the State Board of Assessment Appeals: appeal procedures beyond the county level.
What to look for
- The assessor’s current market value and how it was determined.
- The assessed value after the assessment rate is applied.
- The full list of taxing authorities and total mill levy for your parcel.
- Any special district charges or bonded debt that affect your bill.
Paying your taxes and escrow
Billing and due dates
The El Paso County Treasurer bills property taxes and sets deadlines for payment. You can pay directly or through your mortgage escrow. Late payments usually trigger penalties and interest based on county rules, so mark your calendar for due dates.
How escrow works
If you have a mortgage with escrow, your lender collects one-twelfth of your estimated annual taxes and insurance each month, then pays those bills when due. This can make budgeting easier, but if taxes go up, your escrow analysis may show a shortage. The lender may require a one-time catch-up payment or adjust your monthly payment.
Taxes at closing
Taxes are often prorated between the buyer and seller based on the date of closing. The title or settlement agent follows local practice and your contract to allocate the correct portion for each party. Review your preliminary settlement statement, title commitment, and seller disclosures for prorations and any unpaid assessments.
Affordability and planning
Monthly budget impact
To plan your housing payment, include principal and interest, property taxes, insurance, and any HOA or special district fees. The effective tax rate can help you compare neighborhoods and estimate how taxes influence total carrying costs.
Will taxes change after you buy?
Taxes can change over time. Your assessed value may increase with reassessments or market appreciation. Local jurisdictions can adjust mill levies, and special districts can add or retire bonded debt. Build in a cushion for future increases when you budget.
Ways to reduce or contest your bill
- Start with an informal review if you see errors in classification, square footage, or property details.
- If needed, file a formal protest within county timelines. Bring supporting evidence like recent comparable sales and condition details.
- Apply for any exemptions or credits you may qualify for through the county or state. Programs can include options for seniors or eligible veterans, and some relief or deferral programs.
Buyer due-diligence checklist
- Review the most recent tax bill for assessed value, total mill levy, and special district charges.
- Confirm which special districts serve the property and whether there is bonded debt.
- Ask the seller for a copy of their latest tax bill and any escrow statements.
- Verify how taxes will be prorated on your closing statement.
- Recheck the assessment rate and parcel mill levy before finalizing your budget.
Work with a local guide
Property taxes are local, detailed, and tied to your exact address. If you want help estimating your bill, reviewing special districts, or planning your monthly budget, our team can walk you through it as part of your buying or selling plan. For a clearer picture of your options in Colorado Springs and across the Front Range, connect with Scott Coddington for community-focused guidance and a personalized plan.
FAQs
How are Colorado Springs property taxes calculated?
- Taxes equal assessed value × (total mill levy ÷ 1,000), where assessed value is market value × the state assessment rate.
What is a mill levy in El Paso County?
- It is the combined tax rate from all jurisdictions serving your parcel, including county, city, school district, and special districts, stated in mills.
Do I need an escrow account for property taxes?
- Lenders often require escrow with a mortgage to collect monthly tax and insurance funds, then pay bills on schedule.
How do I appeal my assessed value in Colorado Springs?
- Start with an informal review with the El Paso County Assessor, then file a formal protest by county deadlines if needed, and escalate at the state level if required.
Why is my neighbor’s tax bill different from mine?
- Parcels can have different assessed values, mill levies, or special district charges, which can lead to different annual taxes even in the same area.
