Relocation · Licensed in Both States
Moving From California to Colorado
The property tax news is better than you expect. The thing that will actually surprise you is a line item most Californians have never heard of.
Overview
Colorado property taxes are lower than California’s. Then the metro district shows up.
This is the part nobody believes at first: Colorado runs an effective property tax rate of roughly 0.519% of home value — eleventh lowest in the country — against California’s roughly 0.693%. Unlike a move to Texas, you are not walking into a bigger tax bill as a percentage of value. Colorado does have a state income tax where Texas does not, so the overall picture is a trade rather than a win, but the escrow line on your mortgage is genuinely friendlier here. The catch is local and it is specific. Much of the newer construction in the north Denver metro sits inside a metropolitan district — a special taxing district that financed the roads and parks in that subdivision and recovers the cost through an extra mill levy on top of your regular property tax. It is collected with your taxes, paid through escrow, and it lands in your monthly payment. Two houses at the same price, a few miles apart, can produce meaningfully different approval amounts because of it. I pull the actual mill levy for the specific subdivision before you write an offer, which is not something a lender in another state will think to do.
What actually changes
The six things I work through on a California-to-Colorado file
- Getting pre-approved in Colorado before your California home closes
- Documenting sale proceeds as your down payment
- Qualifying while you still carry the California mortgage
- Checking whether your target subdivision sits in a metro district
- Choosing a county — loan limits swing from $541,650 to $879,750
- Budgeting Front Range hail insurance before you write the offer
The details
What to plan for
Property tax is lower
About 0.519% effective in Colorado against 0.693% in California — eleventh lowest in the nation. Genuinely good news.
But metro districts exist
Newer north-metro subdivisions carry an extra mill levy that can undo the advantage. See how it works in Thornton.
Loan limits vary by county
FHA runs $862,500 across the Denver metro, $879,750 in Boulder County and $541,650 in El Paso County. Conforming is $832,750. See where I lend.
Using your sale proceeds
Before your California home closes, Fannie Mae lets a lender estimate proceeds at 90% of listing price minus liens. After it closes, the settlement statement is required.
Assistance is mostly first-time
CHFA generally targets first-time buyers, so a relocating repeat buyer usually will not qualify. metroDPA is often open to repeat buyers. Compare Colorado programs.
Hail is the insurance story
The Front Range is one of the most hail-exposed markets in the country. Insurance quotes belong in your budget early, not at the closing table. I also own a roofing company here, so I know what those claims look like.
Making the move? Let us map the numbers first.
Send me your California sale price and your Colorado target city. I will come back with the real payment, metro district included. Call (303) 557-3846 or start online.
California vs Colorado: the numbers that change
| California | Colorado | |
|---|---|---|
| Effective property tax rate | ~0.693% | ~0.519% (11th lowest in the U.S.) |
| State income tax | Yes | Yes — flat rate |
| How your home is assessed | Prop 13 caps growth on your existing basis | Reassessed on a statewide cycle |
| Local add-on to watch | Mello-Roos in some districts | Metropolitan districts in newer subdivisions |
| 2026 FHA limit | Up to $1,249,125 in 13 counties | $862,500 Denver metro · $879,750 Boulder · $575,000 Weld · $541,650 El Paso |
| 2026 conforming limit | $832,750 | $832,750 |
| Down payment assistance | GSFA has no first-time requirement | CHFA is largely first-time; metroDPA often is not |
| Main insurance exposure | Wildfire | Hail |
Common questions about moving from California to Colorado
Are property taxes higher in Colorado than California?
No — they are lower. Colorado’s effective property tax rate is about 0.519% of home value, eleventh lowest in the country, against roughly 0.693% in California. The caveat is local: if you buy in a newer subdivision inside a metropolitan district, an additional mill levy is layered on top and can push your effective cost well above the statewide figure.
What is a metro district and why does it matter to my mortgage?
A metropolitan district is a special taxing district that financed the infrastructure in a subdivision and recovers the cost through an extra mill levy on your property tax. Because it is collected with your taxes and paid through escrow, it becomes part of the monthly payment lenders qualify you on. Two identically priced homes can therefore produce different approval amounts. Ask before you write the offer, not after.
Can I get pre-approved in Colorado before my California home sells?
Yes. Before the sale closes, Fannie Mae guidelines allow a lender to estimate your net proceeds at 90% of the listing price minus all liens. Once the sale closes, the lender must obtain the settlement statement showing sufficient net proceeds before or simultaneously with your Colorado closing. If you need to buy first, a bridge loan payment can be excluded from your debt-to-income ratio with a fully executed sales contract and confirmation that financing contingencies are cleared.
Can I use Colorado down payment assistance if I owned a home in California?
Usually not through CHFA, which largely targets first-time buyers — and owning in California counts. metroDPA, sponsored by the City and County of Denver, is generally open to repeat buyers within its income and credit thresholds, so it is the first place to look. Most relocating Californians are bringing sale proceeds anyway and do not need assistance at all.