A Realtor’s Guide to Understanding the 2025 Tax Bill

Continuing the conversation from Beyond the Appraisal, this topic is all about what happens next—when the value is set, the dust settles… and your client says: “So… what are my taxes going to be?”

Start With What We Know

• The value is based on how the property existed on January 1, 2025
• That value was determined using sales between 7/1/22 and 6/30/24
  
  • That’s a 24-month lookback
  • Or 18 months if your county uses 1/1/23 as a cutoff

So how do we go from value to taxes?

Three simple parts… that get complicated fast:

1. The Value (we’ve got that!)
2. The Assessment Rate
3. The Mill Levy

Sounds easy, right? But here’s the twist-

• Discounts for seniors, veterans, agriculture
• Developer exemptions
• $55,000 residential value exemptions (thanks, 2023 legislature!)
• Exempt properties
• Temporary discounts like we saw last year
  So… yeah. It’s not exactly a straight line.

How We Got Here: A Quick Journey Through Tax Reform

2020: The End of Gallagher

Colorado voters said goodbye to the Gallagher Amendment, which had forced residential and non-residential values to stay in a fixed ratio. That repeal meant:

• No more auto-adjusting assessment rates
• More control at the legislative level

 “De-Brucing” Explained

Most new metro districts “De-Bruce” from TABOR when they’re created. Why?

• It lets them keep extra revenue from growth
• But they can’t raise rates without voter approval

Fun fact: Developers usually own all the land when districts form, so they vote “yes.”

 2023: Values Jumped (and Most Mill Levies Didn’t Budge)

Your clients saw values rise 40%+, but taxing authorities rarely adjusted. This caught a lot of homeowners by surprise—and you probably fielded more than a few “Is this real?!” texts.

 2024 Assessment Rates

• Residential: 6.7% + $55,000 exemption from the actual value
• Non-Residential: Still 29%

What’s Changing in 2025?

Thanks to Senate Bill 24-233, we’re getting two residential assessment rates:

• School districts: 7.15%
• Everyone else: 6.7%

Why? To balance funding across different types of local government. It’s all about equity and economics.

And remember—TABOR still rules the playground:

• Lawmakers can lower rates anytime
• But to raise them? Voters have the final say

What About the Senior Discount?

It’s called the Senior Homestead Exemption, and it can cut the tax bill a lot:

• 50% off the first $200,000 in actual value
• To qualify, the homeowner must:
  
  • Be 65+ as of Jan 1
  • Have lived in the home 10+ years

BUT: For 2025 & 2026, seniors who moved within Colorado from 2020–2024 can still apply—even if they haven’t hit that 10-year mark. A big win for downsizing retirees.

Let’s Put This into Action

Let’s say the value is set… now what?

2025 Estimated Tax Examples:

• $1.3M Home → ~$7,656—Highlands Ranch
• $1.3M Home → ~$14,874—The Canyons

*Estimates vary by district and discounts—but this gives you a ballpark.

The Big Trend: Value Is Just the Starting Line

The traditional way of calculating taxes is changing.

• The value is fixed early
• The rates and variables shift later
• That’s where strategy, timing, and knowledge come in

As a Realtor, your job is to:

• Help clients understand what’s influencing their tax
• Know how to explain discounts and legislative changes
• Be ready to answer: “What happens next?”

Need Help? We’re Just an Email Away!

AskAnExpert@FirstIntegrity.com
Let’s tackle this together — and make you the hero your clients need!

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