Denver, the gateway city to the Rocky Mountains, has seen a steady influx of out-of-state movers over the past few years, leading to a rapid increase in housing prices. Many are curious whether the burden of property taxes has risen alongside home prices, and when looking at the actual figures, it turns out to be relatively moderate.

Denver County, where the city is located, applies a mill levy that is somewhat high compared to the overall state of Colorado. While Colorado's effective property tax rate is among the lowest in the nation, the city of Denver adds an additional levy for city services, resulting in an effective tax rate of about 0.55% to 0.6%.

The median home price in Denver is around $580,000. Applying the effective tax rate of 0.55%, the annual property tax is calculated to be approximately $3,190. This is somewhat higher than Colorado Springs, but still lower compared to the average in major U.S. cities.

Insurance premiums should reflect that Denver is considered one of the areas in the country with a high frequency of hail damage. The entire Front Range region has seen a surge in roof damage claims during the summer hail season, leading insurance companies to continuously adjust their rates. Recently, listings have been seen with premiums rising to between $2,200 and $3,000 annually.

Maintenance costs can be estimated at 1% to 1.5% of the home price, which translates to about $5,800 to $8,700 per year. Denver has a mixed market of new and older homes, leading to significant variations between listings. Given the local characteristic of frequently needing roof replacements due to hail damage, it is safer to conservatively estimate maintenance costs on the higher end.

When combining property taxes, insurance, and maintenance costs, the total annual ownership cost comes out to roughly between $11,000 and $15,000. On a monthly basis, this amounts to about $920 to $1,250, so considering this amount along with mortgage principal and interest when reviewing listings can be helpful for actual budget planning.

Colorado operates a separate property tax exemption program for seniors aged 65 and older and disabled veterans, rather than a unified homestead exemption, so households that meet these criteria may want to consider applying.

Compared to nearby Aurora or Lakewood, Denver tends to have a slightly higher tax rate. This is due to the additional city mill levy mentioned earlier, so it's good to remember that property taxes can vary depending on which city boundary you fall under within the Denver metro area.

If you are reviewing listings in Denver, it is advisable to pay more attention to the volatility of insurance premiums due to hail risk rather than the property tax itself. Also, check whether the property has had a recent roof replacement, as this can have a significant impact on insurance estimates.