The short version
I grew up in Castle Rock, just south of Denver, and a lot of the buyers I talk with today are coming from California. Most of them ask the same few questions: How different are the taxes? Will the altitude and snow be a big adjustment? Which part of the Denver area fits the way we want to live? And how do we sell one home and buy another 1,000 miles away without a gap?
Key takeaways
- Income tax: Colorado has one flat rate (4.4% for tax year 2025, per the Colorado Department of Revenue). California’s 2025 rates are graduated, from 1% to 12.3%.
- Property tax: California’s Prop 13 ties your tax to your purchase price. Colorado taxes your home’s current actual value, reset by the county assessor on a regular cycle.
- Altitude: Denver sits about a mile above sea level, so expect drier air, stronger sun and a few days of adjustment.
- Timing: You can sell first, buy first or do both at once. Plan it early, especially if you have a large gain on your California home.
Moving somewhere other than Denver? I also have guides for Castle Rock, Parker, Highlands Ranch, Colorado Springs and the Denver suburbs, plus my main moving to Colorado page.
Taxes: California vs. Colorado
Taxes are usually the first thing California buyers want to compare. Here’s how the main ones line up, using each state’s own published numbers.
| California | Colorado | |
|---|---|---|
| Personal income tax | Graduated, 1% to 12.3% for 2025 (Franchise Tax Board rate schedules) | Flat 4.4% of Colorado taxable income for 2025 (Colorado Department of Revenue) |
| Property tax basis | Purchase price, plus increases capped at 2% a year (Prop 13, Board of Equalization) | Current actual value set by the county assessor |
| Property tax rate | 1% of assessed value plus voter-approved bonds | Assessment rate × local mill levy, which varies by address |
| State sales tax | 7.25% statewide base rate (CDTFA), plus local district taxes | 2.9% state rate (Colorado Department of Revenue), plus city, county and district taxes |
Sources: California Franchise Tax Board 2025 tax rate schedules; Colorado Department of Revenue Individual Income Tax Guide; California State Board of Equalization; California Department of Tax and Fee Administration; Colorado Department of Revenue sales tax rates. Full links are at the end of this article.
A flat rate is simpler to plan around, but a lower rate doesn’t mean every household saves the same amount. Deductions, the kind of income you earn, local sales taxes and the year you move all change the math. If you move mid-year, you’ll likely file a part-year return in both states. Colorado’s Department of Revenue publishes guidance for part-year residents, and a CPA who works with both states can show you your real numbers.
Property taxes work differently here
This is the part that surprises California buyers the most. Under Proposition 13, the California State Board of Equalization explains that a home is reassessed to market value only when it sells or is newly built, and after that its assessed value generally can’t rise more than 2% a year. If you’ve owned your California home for a long time, your tax bill may be based on a value far below today’s price.
Colorado doesn’t lock in a purchase price. Property tax follows one formula: actual value × assessment rate = assessed value, then assessed value × mill levy = tax. The county assessor sets the actual value on a regular revaluation cycle, the state sets the residential assessment rates, and each taxing authority for that address, such as the school district, county, city, fire district and any metro district, sets its own mill levy every year. For tax year 2026, the Colorado Division of Property Taxation lists residential assessment rates of 7.05% for school districts and 6.8% for local governments, with the local government rate applied after a 10% reduction of the first $700,000 of actual value.
Three things to check for any Denver-area address
The county. Denver, Arapahoe, Douglas and Jefferson counties each have their own assessor, and each one lets you look up the taxes and taxing districts for a parcel. Metro districts. Many newer south metro neighborhoods were built with metropolitan districts that add their own mill levy. My metro districts guide shows how to look one up. HOA dues. These are separate from taxes, so ask for the association documents early.
Lifestyle: what feels different
Most people I work with say the day-to-day pace is the biggest change. A few things to expect:
- Mountains instead of the coast. The Front Range is visible from much of the metro, and the foothills, trails and reservoirs are close. Ski areas are a drive west on I-70, and weekend traffic on that highway is something locals plan around.
- Bigger lots in parts of the south metro. Areas like The Pinery in Parker, the Village at Castle Pines and parts of Castle Rock include larger lots and acreage, while central Denver neighborhoods are closer to restaurants and shops.
- Golf and clubs. The south metro has several private and public golf communities. My guide to golf communities south of Denver compares them.
- Four seasons. Snow, spring storms and summer afternoon thunderstorms are part of the year, which changes how you think about driveways, roofs and garages.
- Getting around. Most daily trips are by car. Denver International Airport is northeast of the city, so the drive time from your future home is worth checking if you travel often.
The altitude and weather adjustment
Denver is called the Mile High City for a reason: it sits about 5,280 feet above sea level, and a step on the west side of the Colorado State Capitol is marked at one mile high. Many newcomers notice the thinner, drier air for the first few days. Common advice is to drink more water, take hard workouts and alcohol slowly at first, use lip balm and moisturizer, and wear sunscreen year-round, since the sun feels stronger at altitude. If you have a heart or lung condition, talk with your doctor before the move.
The weather is very different from coastal California. Expect low humidity, big swings between day and night temperatures, snow that often melts within a few sunny days, and hail in late spring and summer. When you buy, ask about the roof’s age and material, the driveway’s slope and which way it faces, and how the home is heated. My luxury home inspection checklist covers what to look at.
Where to look around Denver and the south metro
There’s no single right answer. The best fit depends on your commute, how much land you want, whether you want a walkable neighborhood or more privacy, and how often you’ll fly. Here are the options I most often help buyers compare:
Central Denver
Cherry Creek, Washington Park, Country Club and Hilltop put you close to restaurants, shopping and parks, with older homes and newer builds on city lots. See Denver luxury homes.
Cherry Hills Village
A small city just south of Denver with larger lots, estate homes and a more private feel, still close to central Denver and the Tech Center. See Cherry Hills Village homes.
Castle Pines
The gated Village at Castle Pines, The Canyons and Castle Pines North, with golf, open space and custom homes. See Castle Pines luxury homes.
Parker
Larger-lot areas like The Pinery, the Colorado Golf Club and a historic Mainstreet. See Parker luxury homes.
Castle Rock
My hometown, with Crystal Valley Ranch, acreage on the edges of town and a downtown that’s still growing. See Castle Rock luxury homes.
Highlands Ranch and Lakewood
Highlands Ranch has master-planned neighborhoods like BackCountry, and Lakewood sits right against the foothills.
Torn between two areas? Read Castle Pines vs. Castle Rock, Parker vs. Castle Rock, the south metro suburbs comparison or the best luxury neighborhoods in Denver.
Selling in California and buying in Colorado
The hardest part of most moves is the timing. You have three main options:
- Sell first, then buy. You know exactly what you have to spend, and you can sometimes negotiate a short rent-back in California while you shop here.
- Buy first, then sell. You move once, but you may need bridge financing or enough cash to carry two homes for a while. A home-sale contingency is possible, but sellers in some areas see it as a weaker offer.
- Close both in the same window. This takes careful coordination between the two title companies and lenders.
My guide to buying and selling a house at the same time covers each option in detail.
Plan for the gain on your California home. Federal law (Section 121) can exclude up to $250,000 of gain on a main home, or $500,000 for joint filers, if you meet the IRS ownership and use tests. Long-time California owners sometimes have gains above that. Read my capital gains guide and talk with a CPA before you list, since where and when you sell can affect which state taxes the gain.
California may hold back part of your sale price. When you sell California real estate, California generally requires 3⅓% of the sale price to be withheld for state income tax at closing. There are exemptions, for example if the home was your principal residence under the federal Section 121 rules, or if you sell at a loss. The withholding, or the exemption, is reported on California Form 593. Talk with a CPA before you list.
Financing at Denver-area prices. Many luxury purchases need a jumbo loan. My jumbo loan limits guide explains the current conforming limits by county and what jumbo lenders usually look for. You may also want to review buyer closing costs in Colorado.
Touring and buying from out of state
- Start with video. I can walk homes with you live on FaceTime or Zoom and record neighborhood drives so you can narrow the list before you fly in.
- Plan one focused trip. Many buyers come out for two or three days to see their top homes and drive the areas at real commute times.
- Learn the Colorado contract. Colorado uses state-approved forms with firm dates for inspection, appraisal and loan. See my contract deadlines guide.
- Inspect remotely. You can join the inspection by video and get the report the same day.
- Close from anywhere. Ask the title company about remote or mail-away signing if you can’t be here.
- Handle the paperwork after you move. The Colorado DMV says new residents must transfer their driver’s license within 30 days and register their vehicles within 90 days of establishing residency.
How I help relocating buyers
- Area fit first. We start with how you want to live, then I show you the areas and homes that match, so you can decide what fits you.
- Homes on video. Live video tours and recorded drives, so your trip out here is spent on the homes that matter.
- Due diligence. I help you request HOA and metro district documents, check taxes on the county assessor’s site and keep every contract deadline on track.
- Timing both moves. I coordinate dates with your California agent, lender and title companies so your sale and purchase fit together.
I’m with The Gold Standard Brokerage, which was founded by Sean Gribbons and is run by Sean and me. Call or text me at 720-357-5785 whenever you’re ready to start.
Sources
- Colorado Department of Revenue: Individual Income Tax Guide (income tax rates by year)
- California Franchise Tax Board: 2025 tax rate schedules
- California State Board of Equalization: how property is assessed (Prop 13)
- Colorado Division of Property Taxation: understanding property taxes in Colorado
- Colorado Division of Property Taxation: 2026 residential local government assessment rate
- California Department of Tax and Fee Administration: sales and use tax rates
- Colorado Department of Revenue: Sales Tax Guide
- California Franchise Tax Board: real estate withholding
- California Franchise Tax Board: Publication 1016, real estate withholding guidelines (3⅓% rate and exemptions)
- Colorado Division of Motor Vehicles: New to Colorado
