Does Colorado have a state income tax?

Yes. Colorado has a state income tax with a top rate of 4.4%.

How much is Colorado state tax on a $100,000 salary?

On a $100,000 salary in Colorado, state income tax is approximately $3,692. Your estimated total take-home pay is $75,488/year.

What other taxes does Colorado have?

Colorado has a 2.9% state sales tax. Local and city taxes vary widely — Denver adds 4.81% for a total of 8.81%. Colorado has no estate or inheritance tax.

How does Colorado compare to other states for taxes?

Colorado's top rate of 4.4% compares favorably — below the national median for state income taxes.

What is Colorado's state income tax rate?

Colorado has a flat 4.4% income tax rate for all filers, reduced from 4.55% in 2023 and 4.63% in prior years. The Taxpayer's Bill of Rights (TABOR) often triggers rate refunds when state revenue exceeds limits.

Does Colorado conform to federal standard deductions?

Yes. Colorado generally conforms to federal standard deduction amounts — $16,100 single / $30,000 married filing jointly for 2026.

What is TABOR and how does it affect Colorado taxes?

TABOR (Taxpayer's Bill of Rights) is a Colorado constitutional amendment that limits government revenue growth. When the state collects more than the cap, excess revenue is refunded to taxpayers — often as a direct check or income tax rate reduction.

How does Colorado compare to other Mountain West states for taxes?

Colorado at 4.4% is higher than Wyoming (no income tax) but lower than Oregon (up to 9.9%) and comparable to Arizona (2.5%). Combined with lower housing costs than coastal states, Colorado offers a competitive total tax environment.

State Tax Guide

Colorado State Income Tax Guide (2026)

Colorado has a flat state income tax rate of 4.4% — reduced from 4.55% in 2023 and one of the most straightforward tax systems in the West.

Top State Rate

4.4%

$100k Take-Home

$75,488

/year (single)

State Tax on $100k

$3,692

single filer

Colorado Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
4.4%	$0→All income

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $15,000 single / $30,000 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Colorado — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Colorado State Tax	−$3,692	−$308
Take-Home Pay	$75,488	$6,291

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

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The 30-second version

1.Colorado has a flat 4.4% income tax — among the lowest of states with an income tax. Reduced from 4.55% in 2023 and 4.63% before that. Voters keep approving rate cuts via TABOR refunds.
2.TABOR (Taxpayer's Bill of Rights) is a constitutional revenue cap. When the state collects more than the cap allows, excess is refunded — historically as direct checks or temporary rate reductions. Recent years have seen $700–$1,500 refunds per filer.
3.CO conforms to the federal standard deduction ($15K single / $30K MFJ) — rare among states and a meaningful simplification. Your CO taxable income basically equals your federal taxable income.
4.Property tax is unusually low (~0.5% effective average) — among the lowest in the country, especially after 2024 SB23-208 assessment relief. Boulder/Denver homeowners benefit substantially.
5.No state estate or inheritance tax. Strong angle for HNW retirees relocating from MA, WA, or NY.

A quick hello before we start

Pour yourself a Stumptown or Sweet Bloom pour-over. This is the last Colorado-tax page you should need this year.

Quick note up top: nothing here is personal tax, legal, or financial advice. It's a friendly explainer with real numbers and honest opinions. Your situation has wrinkles only your CPA can iron out — treat this like a thoughtful friend on a Boulder hiking trail, not your accountant.

Last reviewed: April 2026 · Reviewed annually each January when new brackets publish

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and current Colorado Department of Revenue rules (flat 4.4% rate; conforms to federal standard deduction). The calculator at the top reflects this directly — for typical W-2 earners, the calculator output is essentially equal to your actual CO bill, which is unusual and welcome.

Reviewed annually each January and updated mid-year when rules change. Spot something off? Tell us — reader corrections genuinely make these guides better.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the official DR 0104 Individual Income Tax Booklet (CO Department of Revenue).

The flat rate — and the unusual constitutional structure that locks it in

Colorado's 4.4% flat income tax has no brackets, no tiers, no marginal-vs-effective gap (within rounding for the standard deduction). A teacher at $50K and a venture partner at $5M pay the same rate. Like Illinois, the flat structure is constitutionally durable: any switch to a graduated income tax requires a constitutional amendment, which historically dies in CO ballot measures.

Colorado conforms to the federal standard deduction — $16,100 single / $32,200 MFJ for 2026 — making CO state taxable income essentially identical to federal taxable income for standard-deduction filers. This is unusual (most states have separate deduction amounts) and meaningfully simplifies CO returns. Filers who itemize federally must adjust for some CO non-conformities, but standard-deduction filers have an easy time.

The TABOR (Taxpayer's Bill of Rights) constitutional amendment caps state revenue growth at population + inflation. When state collections exceed the cap, excess revenue is refunded — historically through three mechanisms: direct sales tax refund checks (every taxpayer gets one), temporary income tax rate reductions, or one-time rebates. Recent years have seen TABOR refunds in the $700–$1,500 per filer range. The 4.4% rate itself is below the constitutional 4.63% baseline because of voter-approved cuts in TABOR-rich years.

Headline rate vs. what you actually pay

Colorado's chart is even flatter than Illinois's because CO conforms to the federal standard deduction. The marginal and effective rates converge faster as income grows (single filer, 2026 schedule):

The marginal rate is constant at 4.4%. Effective rate climbs slightly as the standard deduction becomes a smaller share of total. This is the entire CO income tax story — refreshingly simple.

TABOR refunds — your annual surprise check

When Colorado state revenue exceeds the TABOR cap, excess is refunded to taxpayers. The refund mechanism varies year to year: sometimes it's a flat per-filer check (e.g., $750 single / $1,500 joint in 2023), sometimes a temporary rate cut, sometimes both. The 2024 refund season delivered roughly $800 per single filer and $1,600 MFJ. Future refunds depend on state revenue and budget decisions, but recent history suggests $500–$1,500 per filer per year as a reasonable expectation.

Practical implication: budget for an effective CO tax rate that's lower than the headline 4.4% in TABOR-refund years. For a single filer earning $100K, a $750 TABOR refund effectively cuts your $4,400 CO tax bill to $3,650 — an effective 3.65% rate. The arithmetic is easy to miss in tax planning but real.

What you'll actually pay — five real-life scenarios

Five scenarios that cover most readers, weighted toward CO's tech, outdoor industry, and HNW retiree audiences. Find the one closest to you. If none match, the calculator at the top is for you.

Illustrative numbers — single filer unless noted, federal standard deduction, full-year CO residency, W-2 income unless specified. TABOR refunds (typically $500–$1,500 per filer in refund years) are not modeled. Two-earner MFJ households pay more FICA than the calculator shows because each spouse has their own Social Security cap. Ballparks, not invoices.

Scenario 1: Denver public school teacher, $65,000

Federal income tax	~$5,750
Colorado income tax (4.4% × $50K taxable)	~$2,200
FICA (Social Security + Medicare)	~$5,000
Total income taxes	~$12,950
Annual take-home	~$52,050
Effective CO tax rate	~3.4%

Denver Public Schools / Cherry Creek / Jefferson County teacher pay is around $50K starting and ramps to $80K+ for senior teachers. The CO bill at this income is genuinely small — 3.4% effective is among the lowest you'll see in any state with an income tax. Add a typical TABOR refund of ~$750 in a refund year and the effective rate drops further. The PERA pension contribution (8.75% of salary, mandatory) is pre-tax for both federal and CO — taxable income drops further.

Scenario 2: Software engineer in Boulder/Denver, $160,000

Federal income tax	~$27,650
Colorado income tax (4.4% × $145K taxable)	~$6,400
FICA	~$12,250
Total income taxes	~$46,300
Annual take-home	~$113,700
Effective CO tax rate	~4.0%

Boulder/Denver tech worker — Google Boulder, Twilio, Pinpoint, Crusoe, Ibotta, or one of the dozens of growth-stage startups. Same comp in San Francisco: ~$10K CA state tax. Denver's $6,400 saves about $3,600/year. Combined with Boulder's quality of life and lower cost of living than the Bay Area, the post-tax math has driven a steady stream of tech professionals from California for the past decade. RSU sales are taxed as ordinary income at CO's 4.4% — meaningfully better than CA's 13.3% on the same gain.

Scenario 3: Two-income family in Denver, $260,000 combined (MFJ)

Federal income tax	~$40,900
Colorado income tax (4.4% × $230K taxable)	~$10,100
FICA (two earners + Additional Medicare)	~$20,000
Total income taxes	~$71,000
Annual take-home (pre-housing)	~$189,000
Effective CO tax rate	~3.9%

Classic Denver / Boulder / Fort Collins professional family — one spouse in tech, one in healthcare or education. The same family in California: ~$15K CA state tax (~$5K more) and 5–10x the property tax bill. Denver property tax on a $700K home: ~$3,500/year (CO's 0.5% effective average is among the lowest in the country). The total state-and-local tax burden is one of the most favorable in any major-metro setting.

Scenario 4: Founder selling startup equity, $1,500,000 in long-term capital gains (single)

Federal LTCG tax (15%/20% brackets)	~$266,050
NIIT (3.8% on investment income)	~$49,400
Colorado income tax (4.4% × $1,485K)	~$65,350
FICA	$0 (capital gains exempt)
Total taxes	~$380,800
Annual take-home from sale	~$1,119,200
Effective tax rate	~25.4%

Founder cashing out vested founder stock or a secondary sale. The same sale executed as a Texas or Florida resident: $0 state tax (~$65K savings vs CO). The same sale as a California resident: ~$200K in CA state tax (~$135K worse than CO). So CO is meaningfully better than CA for founder exits but ~$65K worse than the no-tax states. For founders facing a one-time liquidity event in the $1M+ range, the math leans toward TX/FL relocation if you're geographically flexible. CO's QSBS Section 1202 conformity is imperfect — work with a CO-aware CPA.

Scenario 5: HNW retiree in Aspen, $400,000 mostly investment income

Federal LTCG + qualified dividend tax	~$60,000
NIIT (3.8% on investment income)	~$7,600
Colorado income tax (~4.4% × $385K AGI-adjusted)	~$16,940
FICA	$0 (investment income exempt)
Total taxes	~$84,500
Annual take-home	~$315,500
Effective rate	~21.1%

Aspen / Vail / Telluride / Steamboat HNW retiree — the resort-town real-estate-rich demographic. CO has no state estate tax, which is the long-run win for these households (vs MA at $2M exemption or NY at $7.16M). CO retirees 55–64 can subtract $20K of pension/IRA distributions; 65+ can subtract $24K. SS up to $20K is also subtractable. The Aspen property tax (~0.4% effective) is laughably low for the home values involved — a $5M Aspen ski-in/ski-out condo carries ~$20K/year in property tax, vs $130K in equivalent NJ.

Got the number you came for? Scroll up to run your specific salary in the calculator. Or keep reading — the next section is the property tax math that makes Colorado a quiet winner for homeowners.

Back to calculator

Property tax — among the lowest in the country

Colorado property tax effective rates by county (approximate, primary residence): Denver 0.50–0.60%, Boulder 0.40–0.55%, Jefferson 0.55–0.65%, Arapahoe 0.55–0.70%, Douglas 0.50–0.65%, El Paso (Colorado Springs) 0.50–0.60%, Larimer (Fort Collins) 0.55–0.65%, Pitkin (Aspen) 0.30–0.45%, Eagle (Vail) 0.35–0.50%. Statewide average is ~0.51% — among the lowest in the country, behind only Hawaii and Alabama.

The 2023–2024 legislative reforms (SB23-303, SB24-233 — "Property Tax Reduction") cut residential assessment ratios and provided temporary rate reductions. Net effect: Colorado property tax bills, already low, dropped further for most homeowners. Going forward, the assessed value increase is capped, and the residential assessment ratio is locked at 6.7% for 2024–2025 (with further adjustments planned). Practical implication: a $700K Denver home pays ~$3,500/year in property tax. The same value home in Texas would pay $11K+, in NJ $17K+.

Resort-town wrinkle: Aspen, Vail, Steamboat, and Breckenridge use a different residential assessment ratio nuance and benefit from extreme property valuations relative to actual cash flow. A $5M Aspen condo's property tax bill is often less than a $1M Westchester County colonial's. This is a real driver of HNW relocation.

The "should I leave Colorado?" math — actually run

CO is a tax-favorable state by most measures, so reasons to leave are usually NOT income tax–driven. Run the numbers honestly:

Annual income tax savings: For a $200K wage earner, moving to TX or FL saves ~$8K/year. For a $500K earner, ~$22K. CO's 4.4% is moderate enough that the savings is real but not huge for most professionals.
Property tax: CO is already among the lowest in the country. Moving anywhere else (except HI or AL) increases your property tax bill, often substantially.
Estate tax: CO has no state estate or inheritance tax — already in the favorable bucket. No relocation upside.
Cost of living: Denver/Boulder housing costs have grown rapidly since 2018. Mountain town real estate is genuinely expensive. If you're considering leaving for cost reasons (vs tax reasons), that's a separate analysis.
Lifestyle assets that don't move: 300 days of sunshine, mountain access, ski resorts, biking, hiking, climbing, Denver's growing food scene. These are real and weigh more for many CO residents than the marginal tax savings of leaving.

For most CO residents, stay. The combined income + property tax burden is among the lowest in the country at most income levels, and the lifestyle dividend is genuinely substantial. For $1M+ founders facing a single-year liquidity event: TX or FL leaves $50K+ on the table — worth running honestly. For HNW retirees: CO's no-estate-tax structure means staying isn't the financial hit it would be in MA, NY, or WA.

Compare Two States

See how income tax, take-home pay, and total tax burden differ between any two US states side by side.

State 1

State 2

Things financially comfortable Coloradans actually do

Colorado's flat-tax + low-property-tax structure makes some moves more or less valuable than they'd be elsewhere. A few that actually matter:

Max your 401(k) ($24,500 in 2026) — pre-tax for federal AND Colorado. Saves ~$1,000/year in CO tax for typical professionals.
Max your HSA if eligible ($4,400 single / $8,750 family) — pre-tax for federal AND CO.
Backdoor Roth IRA — fully legal, well-established, mostly free.
Mega backdoor Roth if your employer's 401(k) plan allows after-tax contributions.
CollegeInvest 529 plan (Colorado's own) — CO offers a state-tax deduction up to $25,000 single / $50,000 MFJ per beneficiary annually for contributions to CollegeInvest. Among the most generous 529 deductions in the country. Saves up to $1,100 single / $2,200 MFJ per kid in CO tax annually for the typical contributor.
Defined-benefit / cash-balance plan if you're self-employed or run a partnership. Can defer $200K+ annually if structured properly.
Pension/retirement income subtraction — for ages 55–64, $20K subtraction; 65+, $24K subtraction. SS up to $20K subtractable. Retirees should ensure these are claimed.
Property tax appeal — CO assessment cycles run on 2-year intervals (odd years for residential reassessment). Homeowners can appeal in May–June of reassessment years. Less common to need than in IL or NJ, but available.
TABOR refunds — automatic in refund years, but verify your address is current with the CO DOR to ensure the refund check reaches you.
Marijuana tax revenue funds many programs — not directly tax-relevant, but a real source of state revenue that affects long-run tax-rate dynamics.

A friendly nudge: if you have kids and you're not maxing CollegeInvest contributions, fix that. The deduction is genuinely generous and easy to claim. Beyond that, max your 401(k) and HSA — standard advice that's slightly more valuable in CO than no-tax states because of the state-level deduction.

Residency — clean and welcoming

CO doesn't run aggressive residency audits. The 4.4% rate isn't worth the FTB-style hardball. Standard playbook:

CO driver's license, vehicle registration, voter registration.
Standard 183-day domicile rule. CO Department of Revenue accepts conventional documentation.
If you maintain a CO mountain-town vacation property as a non-resident: be careful about the day count (any part of a day in CO counts).
If you're moving FROM CO to a no-tax state: complete standard relocation, file CO 104PY part-year for the year of departure, done. CO is unlikely to fight a documented move.
If you're moving TO CO from CA or NY: those states will fight to keep you. CO welcomes you. Read your origin-state guide.

For typical movers in either direction, CO residency mechanics are straightforward.

Real questions people actually ask

Q: What's a TABOR refund and when do I get one?

TABOR refunds happen when state revenue exceeds the constitutional cap (population + inflation growth from prior year). Recent refund-year payouts: 2023 ~$750 single / $1,500 MFJ. 2024 similar. The mechanism varies — sometimes a sales tax refund check, sometimes a temporary rate reduction, sometimes both. Filing your CO 104 return triggers the refund automatically. You don't need to apply separately. Update your address with CO DOR if you've moved to ensure the check reaches you.

Q: Will Colorado ever switch to a progressive income tax?

Not soon. Colorado voters rejected proposed progressive tax structures in 2020 (Proposition 116 — actually passed a flat-rate cut), and CO's TABOR amendment makes it constitutionally difficult to add brackets without explicit voter approval. The flat 4.4% is structurally durable for the foreseeable future. If anything, the rate is more likely to drop further during high-revenue years.

Q: Does Colorado tax my retirement income?

Partially. Social Security income up to $20,000 is subtractable. Pension and retirement plan distributions: ages 55–64 get a $20,000 subtraction; ages 65+ get a $24,000 subtraction. So a 67-year-old single retiree with $20K SS + $30K pension + $10K IRA = $60K total: subtract $20K SS + $24K pension/IRA = $36K subtraction; CO taxable = $24K; CO tax at 4.4% = ~$1,056. Generous but not as generous as Illinois (which exempts all retirement income) or Pennsylvania (which exempts most).

Q: How does CO's QSBS treatment compare to federal?

Colorado conforms imperfectly to federal Section 1202 Qualified Small Business Stock exclusion. Federal allows up to $10M (or 10× basis) of qualifying gain to be excluded if held 5+ years. CO does not have a parallel exclusion — the QSBS-eligible gain that's federally excluded is generally not added back for CO purposes (because it's not in federal AGI), but post-exclusion CO treatment of any remaining gain follows ordinary rules. For founders considering exit timing, CO is significantly better than CA (which conforms only partially and adds back some federal exclusion) but worse than TX/FL (which have no state tax at all).

Q: Why is Colorado property tax so low compared to similar Western states?

Several reasons: (1) the Gallagher Amendment (1982–2020) historically pushed residential assessment ratios down to balance commercial property tax; (2) TABOR caps state-level tax growth, indirectly limiting the property tax pressure that pension obligations create elsewhere; (3) CO has relatively young, well-funded public pension systems compared to IL or NJ; (4) recent reforms (SB23-303, SB24-233) further reduced residential assessment ratios. Net effect: CO homeowners pay among the lowest property tax bills in the country relative to home value.

Q: Should I work in Colorado from out of state?

Depends on your residency state. CO taxes wages earned for work performed in CO. Days physically worked in CO are CO-source income. Days worked remotely from your home state are not CO-source income. Track workdays carefully if you have any travel-to-CO component. The reverse (CO resident working remotely for an out-of-state employer) is generally clean — CO taxes you on worldwide income as a resident, with credit for taxes paid to other states for work physically performed there.

Our honest opinion (which is just an opinion)

Quick disclaimer before we get on the soapbox: what follows is one writer's perspective after reading a lot of tax data and talking to a lot of Coloradans. You're encouraged to disagree, and we genuinely mean that.

Colorado is one of the best-designed state tax systems in the country: low flat rate, generous federal conformity, exceptionally low property tax, no estate tax, occasional TABOR refunds. The combined state-and-local tax burden is among the lowest among states with an income tax, and the lifestyle dividend is real. The trade-off has historically been cost of housing in Denver/Boulder and the mountain towns — that's where most of the actual financial pain lives.

The case for Colorado is real:

Flat 4.4% income tax — among the lowest of states with income tax
Conforms to federal standard deduction — meaningful simplification
Property tax among the lowest in the nation — genuinely tax-favorable for homeowners
No state estate or inheritance tax — HNW-friendly
TABOR refunds in many years effectively reduce the tax burden further
CollegeInvest 529 deduction is among the best in the country
Strong economy: tech, aerospace, energy, agriculture, tourism
Lifestyle access: mountains, sunshine, outdoor recreation, growing food/cultural scene

The case against is also real:

Cost of housing in Denver, Boulder, and resort areas is high and rising
Wildfires and water-rights complications are real long-term considerations
Mountain commute logistics (I-70 ski traffic) wear thin over time for some residents
Healthcare networks are decent in Front Range cities but thin in mountain towns
Public school funding varies enormously by district

Honest take: if you can afford the housing costs, Colorado is one of the best states tax-wise for almost any income level. The 4.4% flat rate is gentle, the property tax is exceptional, and the no-estate-tax angle is meaningful for HNW households. The lifestyle dividend is large enough that many residents would stay even if the taxes were higher. For founders facing a single-year liquidity event in the $1M+ range, TX or FL still leaves more on the table — but for most working professionals and retirees, CO is genuinely competitive.

If you're considering moving here for a job: factor in housing costs, which are real. The tax math is favorable but only partially compensates for Denver/Boulder home prices.

Either way: it's your life and your money. We just want you to look at the whole picture instead of the parts that fit on a relocation flyer.

What now

Run your numbers in the calculator above. The CO line is small and predictable. Add a TABOR refund expectation in years when the state announces one (typically June for the prior fiscal year).

If you have kids, max CollegeInvest contributions to the $25K single / $50K MFJ deduction. If you're a retiree, ensure you're claiming the pension/IRA subtraction and SS subtraction. The biggest tax mistake most Coloradans make isn't paying too much state income tax — it's leaving the CollegeInvest deduction or the retirement subtractions on the table because they didn't know.

Sources & further reading

Where the numbers and rules on this page come from. Verify any claim against the primary source before making a decision based on it.

A few honest notes

Stuff worth keeping in mind:

This is not personal tax, legal, or financial advice. It's a friendly, well-researched explainer. Your situation has details we can't see from here. Please run your specific numbers by a licensed CPA, EA, or tax attorney before making any meaningful decision.
Tax law changes. This guide reflects 2026 IRS schedules and current Colorado Department of Revenue rules. The 4.4% rate, TABOR refund mechanics, and assessment ratios can be updated by Congress, the CO General Assembly, or by voter referendum at any time.
TABOR refunds are not guaranteed in any specific year — they depend on whether state revenue exceeds the cap. Don't budget for a refund as if it's certain.
Property tax estimates are illustrative and vary widely by county and school district. Your actual bill depends on your specific parcel — check your county assessor's website.
The numbers are illustrative. Scenarios assume standard filing situations and don't include every credit, deduction, NIIT, AMT, equity-comp wrinkle, K-1 income, or out-of-state complication that might apply to you.
Reading this page does not create a client relationship with the writer, ProSalaryTax, or anyone affiliated. We're just here to help you think clearly.
No judgment, regardless of which Colorado community you live in or how much you make. Teachers, founders, retirees, ski-town professionals, and everyone in between — you're all welcome here.

Last updated April 2026 with 2026 IRS schedules and current CO DOR guidance. Numbers assume single filer except where noted. This is journalism with a calculator attached, not tax advice. Be kind to yourself in March.