This is a common question for buyers and homeowners: Are real estate taxes the same as property taxes? In most situations, yes — the terms are used interchangeably, especially for residential homes.
Property taxes is the broad term used by local governments to describe taxes on property ownership. Real estate taxes specifically refer to taxes on real property, meaning land and permanent structures like homes or buildings. For homeowners, your annual tax bill is almost always a real estate tax, even if it’s labeled as a property tax.
In Colorado, property taxes are based on the assessed value of the home and the local mill levy. These taxes fund schools, roads, fire protection, and other local services. Changes in assessed value or mill levies can impact your tax bill over time, even if you haven’t made improvements.
Understanding property taxes matters when buying or selling because they affect monthly payments, affordability, rental cash flow, and net proceeds at closing. Knowing what to expect helps avoid surprises.
Bottom line: for homeowners, real estate taxes and property taxes are effectively the same thing. The wording may vary, but the obligation does not.
