By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

Colorado property taxes are genuinely low relative to Nassau County, and that part of the case holds. What most relocation content misses is that many newer Denver-area developments sit within a metropolitan district levying its own mill on top of county, city, and school taxes — a line that doesn't appear in a listing price and varies enormously between subdivisions. Two other things a New York buyer won't expect: radon testing is close to standard here, and residential transactions run on Real Estate Commission forms completed by licensed brokers rather than by attorneys.

Start With the Long Island Sale

At eighteen hundred miles, coordinating simultaneous closings is impractical and the Long Island transaction sets the budget.

Before touring anything, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.

A seller who establishes Colorado residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.

For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce taxable gain substantially. The full treatment of how gain is calculated covers the mechanics.

Sell first.

The Tax Line That Isn't in the Listing

This is the most useful thing a New York buyer can learn about the Denver metro, and it appears in almost no relocation content.

Colorado property tax rates are genuinely low — among the lower burdens in the country, and a real advantage over Nassau County. That headline is accurate.

What complicates it is the metropolitan district. Many newer suburban developments across the Denver metro were built within special districts formed to finance infrastructure — roads, water, drainage, parks. A metro district issues debt and levies its own mill on top of county, city, and school district taxes to service it.

Three consequences.

It isn't visible in the asking price. Two similarly priced homes in adjacent developments can carry materially different total tax bills depending on whether one sits in a district and what its mill levy is.

Levies vary enormously. Districts differ in how much debt they issued and how far along repayment is, and the rates reflect that.

They change over time as debt is serviced or refinanced, so a figure a seller quotes may not hold.

The instruction is simple: ask whether a specific property sits within a metropolitan district, and what the total mill levy actually is. Then pull the current annual tax bill rather than relying on any estimate.

One further note. Colorado's residential assessment structure has been unusually unsettled since the repeal of the Gallagher Amendment in 2020, with the legislature adjusting the residential assessment rate since. That doesn't change the general picture — rates remain low — but it means figures from a few years ago may not reflect current treatment. Confirm with the county assessor.

Buying Runs Through Brokers, Not Attorneys

The original said Colorado uses escrow rather than an attorney-driven system. Correct, and the more useful version explains what replaces it.

Colorado residential transactions run on standardized contracts approved by the state Real Estate Commission, and licensed brokers complete them. That's genuinely unusual — in most title-company states an agent still isn't drafting the contract, and in New York contract work is reserved to attorneys entirely.

A title company handles closing and issues title insurance. No attorney is necessarily involved on either side.

For a New York seller accustomed to counsel negotiating on their behalf and running the closing, that's a real adjustment. A buyer who wants legal review retains an attorney separately and pays for it, and many relocating New Yorkers do — particularly on larger transactions. The fuller picture of what the attorney handles on the New York side describes what you'd be giving up.

Colorado also uses a statutory seller's property disclosure and specific inspection and objection deadlines built into the standard contract, which run differently from New York's post-contract inspection contingency. Worth understanding before competing.

Two Physical Items to Test

Radon. Colorado has among the highest radon levels in the country, and testing is close to standard in residential transactions here. A New York buyer won't expect it. Mitigation systems are common, relatively inexpensive to install, and many homes already have one — but whether a property has been tested, what the result was, and whether a system exists are all questions to ask rather than assume.

Wildfire. The exposure isn't confined to mountain properties, and recent Front Range fires demonstrated that grassland-adjacent suburban areas carry real risk. In wildland-urban interface areas, insurance availability rather than price can be the constraint, and a lender won't close without bindable coverage. Get actual quotes on specific addresses before making an offer. Deductibles are frequently expressed as a percentage of insured value rather than a flat amount.

Water is worth a mention for anyone looking outside municipal service areas. Colorado water law is genuinely distinctive, and a property on a well rather than municipal supply raises questions a New York buyer has no framework for. Route those to local counsel before an offer.

Practical Logistics

Roughly 1,800 miles — a genuine long-distance move requiring interstate movers booked well ahead, with vehicle transport standard.

Altitude is a real adjustment. Denver sits at about 5,280 feet, and acclimation takes time, particularly for anyone active outdoors. The air is dry year-round, which affects everything from skin to woodwork.

Climate is semi-arid with abundant sunshine, hot summers, and cold winters with snow that frequently melts quickly. Hail is a genuine consideration — the Front Range sees significant hail activity, and roof condition and hail coverage matter more here than a New York buyer expects.

The metro is car-dependent across most of its footprint, though transit exists within Denver proper. Commute times vary substantially and should be tested at the hour they'd actually be driven.

On sequencing: selling first produces clean funds, a defined budget, and a purchase offer with no contingency. Buying first means carrying both properties, frequently $12,000 to $16,000 monthly combined at Long Island price points.

A Worked Example

Consider a composite case — a Nassau County household relocating for a Denver-area position, selling a colonial that comped near $1,090,000.

Two discoveries shaped their search. They compared two homes at similar prices in adjacent suburban developments and found the total tax bills differed substantially — one sat within a metropolitan district with a significant mill levy, the other didn't. Neither listing mentioned it. They found out by asking and pulling both bills.

Second, radon. The home they pursued tested above the action threshold, and the seller installed a mitigation system as part of the negotiation. In New York that conversation wouldn't have arisen.

They also got insurance quotes on two properties, one of which sat near open grassland, and the difference was enough to factor into the decision.

On the New York side they sold first. Their attorney's early title review found an old undischarged equity line from 2011, cleared in four weeks before listing.

Where to Start

Build the net-proceeds model on the Long Island home and sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.

On the Colorado side: ask whether any property under consideration sits within a metropolitan district and what the total mill levy is, then pull the actual tax bill. Ask about radon testing and whether a mitigation system exists. Get insurance quotes on specific addresses, particularly near open land. Understand that brokers complete the contracts and decide whether you want your own counsel. And test the commute.

Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value, and more market and process coverage lives in Local Insights.

The Honest Bottom Line

Denver is more affordable than Long Island and Colorado's property tax rates are genuinely low. Most households moving this direction improve their position.

The complication is that low rates don't always mean a low bill. A metropolitan district mill levy can add substantially to what a homeowner pays, it varies between developments a few streets apart, and it doesn't appear in the asking price. That's a question with a definite answer and it takes one call.

The rest is preparation — radon testing that New York buyers don't anticipate, insurance quotes that matter more than expected, and a transaction process where nobody at the table is your attorney unless you hire one.

For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.

This is general information, not legal, tax, insurance, or financial advice. Colorado assessment rates, metropolitan district levies, disclosure requirements, and insurance availability vary and change. Confirm current specifics with a Colorado attorney, the county assessor, and a licensed insurance professional, and confirm New York specifics with a licensed New York real estate attorney and a CPA.

FAQs

Are property taxes really lower in Colorado than on Long Island?

Rates are genuinely low — among the lower burdens in the country and a real advantage over Nassau County. What complicates the comparison is the metropolitan district. Many newer Denver-area developments sit within special districts that levy their own mill on top of county, city, and school taxes to service infrastructure debt. That line doesn't appear in a listing price and varies enormously between developments. Ask whether a specific property sits in one, what the total mill levy is, and pull the actual annual bill.

What is a metropolitan district in Colorado?

A special district formed to finance infrastructure — roads, water, drainage, parks — for a development, funded by issuing debt and levying its own property tax mill on residents. Common across newer Denver-area suburbs. Three things matter: it isn't visible in the asking price, levies vary enormously depending on how much debt a district issued and how far repayment has progressed, and rates change over time. Two similarly priced homes in adjacent developments can carry materially different total tax bills.

Does Colorado require an attorney to buy a home?

No, and the arrangement is unusual even among title-company states. Colorado residential transactions run on standardized contracts approved by the state Real Estate Commission, and licensed brokers complete them — in most states an agent isn't drafting the contract, and in New York that work is reserved to attorneys entirely. A title company handles closing and title insurance. A buyer who wants legal review retains counsel separately and pays for it, which many relocating New Yorkers do on larger transactions.

Should I test for radon in Denver?

Yes, and it's close to standard practice in Colorado residential transactions. The state has among the highest radon levels in the country, which is a genuine surprise for New York buyers. Mitigation systems are common and relatively inexpensive to install, and many homes already have one. The questions to ask are whether the property has been tested, what the result was, and whether a system exists — rather than assuming any of it.

How much of a concern is wildfire insurance near Denver?

More than most buyers expect, because exposure isn't confined to mountain properties. Recent Front Range fires demonstrated that grassland-adjacent suburban areas carry real risk. In wildland-urban interface areas, insurance availability rather than price can be the binding constraint, and a lender won't close without bindable coverage — so a buyer who can't obtain a policy can't buy the property. Get actual quotes on specific addresses before offering, and note that deductibles are frequently percentage-based.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com