Colorado Homeowners Face Steep Property Tax Hikes as Temporary Relief Expires

The end of a $55,000 property value exemption and new assessment formulas lead to double-digit increases in many areas.

Feb. 6, 2026 at 8:39pm

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Property tax bills in Colorado have skyrocketed this year as temporary state relief measures expired and new assessment formulas took effect. At the center of the increase is the expiration of a $55,000 property value exemption that had been in place for the past two years under Senate Bill 233. The elimination of this exemption has led to significant tax hikes even for homeowners whose property values remained flat during the 2025 reappraisal cycle.

Why it matters

The sudden and substantial increases in property taxes are causing major financial strain for many Colorado homeowners who had grown accustomed to lower bills in recent years. The changes also highlight the complexities of the state's property tax system, which now includes split assessment rates for school district funding and other local government services.

The details

The $55,000 property value exemption that had been in place since 2023 was removed for 2025, meaning that even homes with flat values saw their taxable value increase by that amount. Additionally, Colorado implemented a split assessment rate system in 2025, with homeowners now paying one rate of 7.05% for school district funding and another rate of 6.25% for all other local government services. Local ballot measures have also affected bills, with some neighborhoods seeing decreases as metro district bonds were paid off early, while others faced increases due to voter-approved levy hikes.

  • The $55,000 property value exemption was in place for 2023 and 2024.
  • The exemption was removed for 2025.
  • Colorado implemented a split assessment rate system in 2025.

The players

Toby Damisch

Douglas County Assessor who explained the impact of the expired exemption and new assessment formulas.

Senate Bill 233

The 2024 legislation that expanded the property value exemption to $55,000, using a 6.7% assessment rate.

Colorado House Bill 24 B-1001

The 2025 legislation that established higher assessment rates for school districts, contributing to the property tax increases.

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What they’re saying

“If your value remained flat for the '25 reappraisal, meaning the assessor didn't change it, in a way it automatically increased for property tax purposes by $55,000 because that value got put back on for this year.”

— Toby Damisch, Douglas County Assessor (9news.com)

“It's a tough story. We haven't known how to communicate it.”

— Toby Damisch, Douglas County Assessor (9news.com)

“Now instead of paying one assessment rate for homeowners, we're paying one for education and another for everything else.”

— Toby Damisch, Douglas County Assessor (9news.com)

What’s next

Local officials are working to better communicate the complex changes in property tax assessments to homeowners, and some neighborhoods may see further adjustments as metro district bonds are paid off.

The takeaway

The expiration of temporary property tax relief measures and the implementation of new assessment formulas have led to significant financial strain for many Colorado homeowners, highlighting the need for more transparent and stable property tax policies in the state.