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This guide is part of our complete Centennial Real Estate Guide → [Centennial Real Estate Guide]

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Centennial homeowners face predictable yet nuanced ownership expenses shaped by Arapahoe County’s tax structure and Denver metro realities. Understanding these costs helps buyers budget accurately and sellers position properties competitively. This guide breaks down property taxes, mill levies, exemptions, and ancillary expenses like utilities and insurance specific to Centennial.​

How Property Taxes Work in Centennial

Property taxes in Centennial fund essential local services, including the Cherry Creek School District and city infrastructure, directly impacting school quality and road maintenance that buyers value in this suburb.​

Assessment Process and Rates

Colorado assesses residential properties at 6.95% of actual value after a deduction, up to $70,000 adjusted for inflation, starting in 2026, though 2025 uses transitional rates around 6.7-7.05%. This assessed value multiplies by the local mill levy—expressed as dollars per $1,000 of assessed value—to determine the bill. For a $532,000 median home, the assessed value lands near $34,750 at 6.95%, yielding taxes based on the mill levy.​

Centennial’s effective rate averages 0.71% of home value, higher than Colorado’s 0.55% state median but below the national 1.02%. This rate reflects Arapahoe County’s balanced funding needs without overburdening residents, preserving affordability in a high-value market.​

Mill Levy Breakdown

Mill levies in Centennial typically range 80-110 mills, combining city (4.982 mills), county, schools, and metro districts. Cherry Creek schools, a draw for families, contribute significantly, explaining variations by ZIP code like higher levies in 80112.​

For example, a 90-mill levy on $34,750 assessed value equals $3,128 annually—close to the $3,377 median bill. Buyers in HOA-heavy areas like southeast Centennial see metro district add-ons for parks and streets, adding 3-5 mills but enhancing property appeal.​

Calculating Your Centennial Property Tax Bill

Precise calculations empower buyers to compare total costs across listings and sellers to forecast net proceeds.

Step-by-Step Example

Start with actual value from county appraisers, subtract exemptions, apply the residential rate: ($500,000 – $55,000 deduction) × 0.067 = $29,850 assessed. Multiply by mill levy (0.090 for 90 mills): $2,686 taxes due.​

Variations occur by neighborhood; 80122 sees median bills around $3,598 due to home values near $625,000. Recent 2025 laws cap statewide revenue growth at 5.5%, stabilizing levies amid rising values.​

Tools for Estimation

Arapahoe County and Ownwell calculators use ZIP-specific data for accuracy. Factor in reappraisals every two years; appeals succeed if market comps show overvaluation, potentially saving 10-20%.​

Exemptions and Relief Programs

Exemptions lower effective costs, particularly for long-term owners in Centennial’s mature housing stock.

Senior and Veteran Benefits

Seniors 65+ qualify for 50% exemption on the first $200,000 of actual value after 10 years ownership, state-funded to ease fixed-income burdens. Disabled veterans receive similar relief, reducing bills by thousands annually.​

Homestead exemptions further deduct value for primaries, stacking with TABOR refunds—up to $1,434 for high earners in 2025. These matter for relocating retirees eyeing Centennial’s low-crime, amenity-rich suburbs.​

TABOR and Recent Reforms

TABOR refunds excess revenue, with 2025 estimates $300-$1,300 per filer alongside Prop HH savings netting $4,455 over a decade for average homes. New caps on assessment growth protect against value spikes from Denver commutes and remote work influx.​

Beyond Taxes: Full Ownership Costs

Taxes comprise 25-30% of annual expenses; utilities, insurance, and maintenance complete the picture in Colorado’s variable climate.

Utilities in Centennial Homes

Monthly utilities average $210-$310, with electricity $100-$150 spiking in summer AC use and winter heating against Front Range cold snaps. Larger homes in 80016 ZIP average higher at $6,027 median taxes plus $3,000 yearly utilities.​

Water/sewer at $60-$80 reflects conservation rules; energy-efficient upgrades cut bills 20%, appealing to cost-conscious buyers.​

Homeowners Insurance Rates

Centennial premiums average $3,024 yearly, 30% above state due to wildfire proximity and density. Shop policies covering mountain brush risks; deductibles impact claims from wind or snow loads common in Arapahoe County.​

HOA Fees and Maintenance

Over 50% of Centennial listings carry HOAs averaging $323 monthly, covering landscaping and reserves in golf communities. Budget 1-3% of value ($5,000-$16,000) for repairs like roofs stressed by elevation changes.​

Cost Category	Annual Average	Centennial-Specific Notes ​
Property Taxes	$3,377 median	0.71% effective rate; varies by ZIP/schools
Utilities	$2,520-$3,720	Peaks in heating/cooling seasons
Insurance	$3,024	Higher for fire-prone edges
HOA (if applicable)	$3,876	Common in newer subdivisions
Maintenance	1-3% home value	Roof/siding priorities
Total (median home)	$15,000+	Excludes mortgage; 25% over PITI

This table illustrates why total costs exceed mortgage perceptions, guiding realistic affordability assessments.​

Impact on Buying and Selling Decisions

Ownership costs influence market dynamics in Centennial’s stable, family-oriented inventory.

Buyer Considerations

Commutes to DTC offices favor east Centennial, but higher metro levies there offset with better amenities. Relocators from low-tax states adjust for 0.71% rate on $466,300-$550,000 medians, yet long-term appreciation (6.6% YoY) builds equity.​

Winter utility surges and insurance necessitate 6-month reserves; pre-purchase audits reveal hidden HOA specials.​

Seller Strategies

Disclose exemptions transferred to buyers; highlight low effective taxes versus Highlands Ranch comparables. Price positions accounting for 2025 reforms, emphasizing stable levies amid state caps.​

Long-Term Ownership Planning

Centennial’s costs remain manageable due to controlled growth and reforms.

Rising values pressure taxes, but deductions and appeals mitigate hikes. Track Arapahoe assessor notices biennially; bundle insurance with utilities for savings. These steps ensure costs align with the suburb’s premium schools and access, sustaining value for decades.​

For personalized analysis of property taxes and ownership costs in Centennial, contact a local advisor today to review specific listings or valuations.​