What You’ll Pay in Property Taxes in Denver
In Denver, CO, property tax rates typically range from 0.6% to 1.1% of a home’s assessed value annually. The median effective property tax rate in Denver is around 0.7%, which is slightly lower than the national average. For a home valued at $500,000, this translates to approximately $3,500 per year or $292 per month in property taxes.
It’s important to note that property tax rates can vary depending on the specific neighborhood and any applicable special assessments or district taxes. When budgeting for a home purchase in Denver, be sure to look up the most recent tax rate for the property and factor this ongoing expense into your monthly housing costs.
While Denver’s property taxes are not the lowest in the country, they are generally lower than rates in other major cities like Chicago or Houston. This, combined with Colorado’s overall lower income tax rates, makes Denver an attractive option for homeowners looking to keep their total tax burden in check.
How HOA Fees Work in Denver
Many residential communities and condo buildings in Denver are governed by homeowners associations (HOAs). When you purchase a property in an HOA neighborhood, you automatically become a member and are required to pay monthly or annual dues.
These HOA fees go toward maintaining and enhancing the common areas and amenities within the community. Typical services and features covered by HOA dues in Denver include:
- Trash and recycling collection
- Landscaping and snow removal
- Exterior building maintenance
- Clubhouse, fitness center, and/or pool upkeep
- Private security or gated entry
- Management and enforcement of community rules
In Denver specifically, some HOAs also cover unique features like xeriscaping (low-water landscaping) or irrigation costs for the dry climate. Be sure to carefully review what a property’s HOA fees include before making an offer, as these can significantly impact your monthly housing budget.
Typical Monthly HOA Costs
HOA fees in Denver often range from $100 to over $400 per month, depending on the property type, location, size, and amenities. In general, condos and townhomes tend to have higher monthly dues than detached single-family homes, as they may include additional services like building insurance and exterior maintenance.
| Community Type | Typical Monthly HOA Fee |
|---|---|
| Suburban neighborhood with minimal amenities | $75 – $150 |
| Average Denver metro HOA community | $200 – $300 |
| Luxury building or gated community with extensive features | $350 – $500+ |
| Example: $400K home with 0.8% tax + $200 HOA | $467/month total |
🏆 For the most affordable path to homeownership, look for neighborhoods with lower HOA dues and fewer costly amenities. Older communities with more basic landscaping and minimal common facilities tend to be the winners in keeping monthly costs down.
Hidden or Seasonal Fees to Expect
In addition to monthly HOA dues, Denver homeowners should be aware of other potential fees throughout the year, such as:
- Special assessments for major repairs or upgrades to community amenities
- Parking permit costs or guest parking fees
- Pet registration or DNA testing for dogs (to enforce cleanup)
- Seasonal charges for opening/closing community pools
- Move-in/out fees or elevator reservation costs
- Late payment penalties or legal fees for delinquent dues
While not all communities charge these extra costs, it’s a good idea to review the HOA’s financial history and ask about any anticipated special assessments before purchasing a property. Having some extra savings on hand can help you weather an unexpected fee down the road.
Are These Costs Worth It?
For many Denver residents, paying property taxes and HOA fees is a worthwhile tradeoff for the benefits of homeownership and community living. Your property taxes help fund essential services like schools, libraries, and road maintenance that improve quality of life for everyone.
HOA dues, while sometimes seen as restrictive, often serve to protect property values and provide a well-maintained, attractive neighborhood. Amenities like community pools, fitness centers, and social events can enhance daily life and help you meet neighbors. And in Denver, homes in managed communities often retain higher resale value than those without an HOA.
Of course, the decision to buy into an HOA is a personal one. Some owners prefer the freedom and lower monthly costs of homes without HOAs, while others appreciate the structure and amenities they provide. Evaluate your budget and lifestyle preferences carefully when weighing the pros and cons.
FAQs About Property Tax and HOA in Denver
How much is the average HOA fee in Denver?
As of 2025, typical HOA dues in Denver range from $200 to $300 per month. However, fees can be as low as $75 in neighborhoods with few amenities or as high as $500+ in luxury condo buildings.
Can my HOA fees increase?
Yes, HOA boards can raise dues to cover increased maintenance costs, new amenity construction, or special assessments. However, homeowners must be notified in advance and increases are typically capped annually.
Do I pay both property tax and HOA fees?
Yes, property taxes and HOA dues are separate expenses. Property taxes are paid to the city/county and fund public services, while HOA fees are paid to your community association for maintenance and amenities. Both are typically paid monthly, often via an escrow account.
What happens if I don’t pay my HOA fees?
Failure to pay HOA dues can result in late fees, legal action, and even foreclosure by the association in extreme cases. If you’re struggling to make payments, reach out to your HOA board to discuss a payment plan or find assistance resources.
Final Cost Insights for Denver Homeowners
When budgeting for a home purchase in Denver, be sure to factor in both property taxes (typically 0.6-1.1% of home value) and HOA fees ($200-$400/month on average). These costs are a vital part of your housing expense and should be considered alongside your mortgage payment.
While no one loves paying taxes and dues, try to view them as investments in your home, neighborhood, and community. Well-managed HOAs and properly funded public services can enhance your quality of life and support strong property values over time.
If you’re considering a move to the Denver metro area, take time to explore typical housing costs and HOA fees in various cities and neighborhoods. With some research and planning, you’re sure to find the right balance of lifestyle and monthly costs for your needs.