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Colorado State Income Tax: Rates and Who Pays in 2026
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Unlike many other states with progressive tax structures, Colorado taxes income at a flat rate.
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Editor & Content Strategist
Expertise Taxes InvestingSabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York. Published in Editor & Content Strategist + more + more
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Previously, she led taxes and retirement coverage at NerdWallet.Pamela joined NerdWallet after working at companies including Hallmark Cards, Sprint Corp. and The Kansas City Star. She has been a writer and editor for more than 20 years.
Pamela joined NerdWallet after working at companies including Hallmark Cards, Sprint Corp. and The Kansas City Star. She has been a writer and editor for more than 20 years.Pamela is a thought leader in content diversity, equity, inclusion and belonging, and finds ways to make every piece of content conversational and accessible to all.
Pamela is a thought leader in content diversity, equity, inclusion and belonging, and finds ways to make every piece of content conversational and accessible to all.She is a graduate of the Maynard Institute's Maynard 200 program, and the National Association of Black Journalists Executive Leadership Academy. She is a two-time winner of the Kansas City Association of Black Journalists' President's Award. She was also founding co-chair of NerdWallet's Nerds of Color employee resource group.
She is a graduate of the Maynard Institute's Maynard 200 program, and the National Association of Black Journalists Executive Leadership Academy. She is a two-time winner of the Kansas City Association of Black Journalists' President's Award. She was also founding co-chair of NerdWallet's Nerds of Color employee resource group. Managing Editor + more + moreColorado is one of 14 states with a flat income tax. Its approach is different from how the federal government and most other states collect taxes.
Colorado is one of 14 states with a flat income tax. Its approach is different from how the federal government and most other states collect taxes.Colorado state income tax rate
Colorado state income tax rateFor tax year 2025, Colorado’s state income tax rate is 4.4%. This rate applies to income tax returns filed in 2026
For tax year 2025, Colorado’s state income tax rate is 4.4%. This rate applies to income tax returns filed in 2026 Colorado General Assembly. TABOR Refund Mechanisms. Accessed Jan 28, 2025. .» MORE: See what federal tax bracket you’re in
» MORE: » MORE: See what federal tax bracket you’re in AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
Why is the tax rate higher than last year?
Why is the tax rate higher than last year?Due to the passage of a May 2024 Senate bill, Colorado's state income tax rate can be reduced based on excess state revenue until 2034
Due to the passage of a May 2024 Senate bill, Colorado's state income tax rate can be reduced based on excess state revenue until 2034 Colorado General Assembly. SB24-228 TABOR Refund Mechanisms. Accessed Dec 8, 2025. . The state tax rate was reduced to 4.25% for the 2024 tax year, but there has been no indication that the tax rate will be reduced for the 2025 tax year.Colorado's net excess revenue was reportedly $293.3 million in 2025
Colorado's net excess revenue was reportedly $293.3 million in 2025 Colorado Office of the State Auditor. Schedule of TABOR Revenue Fiscal Year 2025. Accessed Dec 8, 2025. , and the state income tax is only reduced if excess revenue is above $300 million (as outlined in the table below). Excess revenue first goes toward property tax exemptions.Excess revenue
Excess revenue
Excess revenueTax rate reduction
Tax rate reduction
Tax rate reductionAbove $300 million but not more than $500 million.
Above $300 million but not more than $500 million.0.04%.
0.04%.Above $500 million but not more than $600 million.
Above $500 million but not more than $600 million.0.07%.
0.07%.Above $600 million but not more than $700 million.
Above $600 million but not more than $700 million.0.09%.
0.09%.Above $700 million but not more than $800 million.
Above $700 million but not more than $800 million.0.11%.
0.11%.Above $800 million but not more than $1 billion.
Above $800 million but not more than $1 billion.0.12%.
0.12%.Above $1 billion but not more than $1.5 billion.
Above $1 billion but not more than $1.5 billion.0.13%.
0.13%.Above $1.5 billion.
Above $1.5 billion.0.15%.
0.15%.Source: Colorado General Assembly.
Source: Colorado General Assembly. Source: Colorado General Assembly .When are Colorado state income taxes due?
When are Colorado state income taxes due?Colorado state income tax returns are due April 15, 2026, which mirrors the federal tax deadline. People who need more time to file get an automatic six-month extension, but they must pay at least 90% of their tax bill by April 15 to avoid incurring penalties and interest.
Colorado state income tax returns are due April 15, 2026, which mirrors the federal tax deadline. People who need more time to file get an automatic six-month extension, but they must pay at least 90% of their tax bill by April 15 to avoid incurring penalties and interest.What is Colorado’s standard deduction?
What is Colorado’s standard deduction?Unlike some other states, Colorado does not have a state standard deduction. This is because a taxpayer’s federal taxable income — which already takes into account the application of the federal standard deduction or the taxpayer's itemized deductions — is generally used as a basis for calculating taxes owed to Colorado
Unlike some other states, Colorado does not have a state standard deduction. This is because a taxpayer’s federal taxable income — which already takes into account the application of the federal standard deduction or the taxpayer's itemized deductions — is generally used as a basis for calculating taxes owed to Colorado Colorado Department of Revenue. Colorado Individual Income Tax Filing Guide. Accessed Dec 5, 2025. .Filers who make over a certain amount of income, however, may also be asked to add back in a portion of their federal standard or itemized deductions when figuring their Colorado taxable income. See the Individual Income Tax Guide on the Colorado Department of Revenue’s website for more information
Filers who make over a certain amount of income, however, may also be asked to add back in a portion of their federal standard or itemized deductions when figuring their Colorado taxable income. See the Individual Income Tax Guide on the Colorado Department of Revenue’s website for more information Colorado Department of Revenue. Individual Income Tax Guide. Accessed Dec 5, 2025. .» MORE: Learn about the federal standard deduction and when to take it
» MORE: » MORE: Learn about the federal standard deduction and when to take itDo I have to pay Colorado state income tax?
Do I have to pay Colorado state income tax?Colorado residents and part-year residents who file a federal tax return typically also need to file a Colorado state income tax return. Nonresidents who earn Colorado-sourced income may also have a filing obligation.
Colorado residents and part-year residents who file a federal tax return typically also need to file a Colorado state income tax return. Nonresidents who earn Colorado-sourced income may also have a filing obligation.If your Colorado residency type is ...
If your Colorado residency type is ...
If your Colorado residency type is ...Colorado taxes this part of your income
Colorado taxes this part of your income
Colorado taxes this part of your incomeResident
ResidentAll income from all sources inside and outside Colorado.
All income from all sources inside and outside Colorado.Part-year resident
Part-year residentAll income received while a resident, plus income from Colorado sources while a nonresident.
All income received while a resident, plus income from Colorado sources while a nonresident.Nonresident
NonresidentIncome from Colorado sources.
Income from Colorado sources.» MORE: How much do I need to make to file a federal income tax return?
» MORE: » MORE: How much do I need to make to file a federal income tax return?Am I a resident for Colorado income tax purposes?
Am I a resident for Colorado income tax purposes?There are three types of residency statuses when it comes to Colorado state tax. They determine what portion of your income the state will tax.
There are three types of residency statuses when it comes to Colorado state tax. They determine what portion of your income the state will tax.Colorado generally considers you a resident for tax purposes if:
Colorado generally considers you a resident for tax purposes if:You have a permanent home in Colorado to which you return after traveling from the state. This home could be a rental, condo, house or mobile home; or
You have a permanent home in Colorado to which you return after traveling from the state. This home could be a rental, condo, house or mobile home; orYou maintain a permanent home in Colorado and spend more than six months (182 days) of the year in the state.
You maintain a permanent home in Colorado and spend more than six months (182 days) of the year in the state.Students who attend college in a state outside Colorado, do not intend to establish residency in that state post-graduation or are supported by parents who live in Colorado while in school are considered residents of Colorado by the state taxing authority — regardless of whether they voted or applied for a driver’s license or ID in the state where they attend college.
Students who attend college in a state outside Colorado, do not intend to establish residency in that state post-graduation or are supported by parents who live in Colorado while in school are considered residents of Colorado by the state taxing authority — regardless of whether they voted or applied for a driver’s license or ID in the state where they attend college.Special rules may apply to military personnel or service members and to those who file jointly with someone who is a resident of Colorado, even if they themselves are not. The Colorado Department of Revenue’s website has the details.
Special rules may apply to military personnel or service members and to those who file jointly with someone who is a resident of Colorado, even if they themselves are not. The Colorado Department of Revenue’s website has the details.Residents of Colorado file Form DR 0104.
Residents of Colorado file Form DR 0104 .If you lived in Colorado when the year started but then moved to another state, you may be considered a part-year resident for Colorado tax purposes. Likewise, if you lived in another state when the calendar year started but then moved to Colorado and took steps to establish residency, you’re also probably considered a part-year resident.
If you lived in Colorado when the year started but then moved to another state, you may be considered a part-year resident for Colorado tax purposes. Likewise, if you lived in another state when the calendar year started but then moved to Colorado and took steps to establish residency, you’re also probably considered a part-year resident.Colorado part-year residents file Form DR 0104 and corresponding schedule DR 0104PN.
Colorado part-year residents file Form DR 0104 and corresponding schedule DR 0104PN .Colorado defines nonresidents as people who do not live in Colorado but may have briefly worked in Colorado or made income from Colorado-based sources.
Colorado defines nonresidents as people who do not live in Colorado but may have briefly worked in Colorado or made income from Colorado-based sources.If you’re a nonresident with taxable Colorado income, you may have a state filing obligation if you also must file a federal return. Nonresidents file Form DR 0104 and corresponding schedule DR 0104PN to help calculate Colorado tax liability.
If you’re a nonresident with taxable Colorado income, you may have a state filing obligation if you also must file a federal return. Nonresidents file Form DR 0104 and corresponding schedule DR 0104PN to help calculate Colorado tax liability.» Need help? How to find a tax preparer near you
» Need help? » Need help? How to find a tax preparer near you AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
Colorado tax credits
Colorado tax creditsColorado child tax credit (COCTC)
Colorado child tax credit (COCTC)Colorado taxpayers with dependent children who were below the age of 6 in 2025 (i.e., born in 2020 or later) may be able to claim a refundable state-level child tax credit on their state tax returns. The credit is worth a maximum of $1,200 for the 2025 tax year. Taxpayers who made above $77,000 ($87,000 for joint filers) do not qualify
Colorado taxpayers with dependent children who were below the age of 6 in 2025 (i.e., born in 2020 or later) may be able to claim a refundable state-level child tax credit on their state tax returns. The credit is worth a maximum of $1,200 for the 2025 tax year. Taxpayers who made above $77,000 ($87,000 for joint filers) do not qualify Colorado Department of Revenue. 2025 Colorado Child Tax Credit. Accessed Dec 5, 2025. .» Learn about the federal child tax credit
» » Learn about the federal child tax creditColorado earned income tax credit (COEITC)
Colorado earned income tax credit (COEITC)The earned income tax credit is a refundable tax break for low-to-moderate income earners. Qualified Colorado filers can claim Colorado's state-level version that is modeled after the federal benefit. For the 2025 tax year, the COEITC is worth up to 50% of an eligible filer's federal earned income tax credit
The earned income tax credit is a refundable tax break for low-to-moderate income earners. Qualified Colorado filers can claim Colorado's state-level version that is modeled after the federal benefit. For the 2025 tax year, the COEITC is worth up to 50% of an eligible filer's federal earned income tax credit Colorado Department of Revenue. Income Tax Topics: Earned Income Tax Credit. Accessed Dec 5, 2025. . To check eligibility, you can access the EITC assistant on the Colorado Department of Revenue's website Colorado Department of Revenue. EITC Assistant. Accessed Dec 5, 2025. .» Learn about the federal earned income tax credit
» » Learn about the federal earned income tax creditColorado sales tax
Colorado sales taxColorado’s statewide sales tax is 2.9%. This tax applies to items such as the sale of prepared food and drinks, goods or merchandise, and hotel rentals or other accommodations. It doesn’t apply to things such as groceries or medications, which are tax-exempt.
Colorado’s statewide sales tax is 2.9%. This tax applies to items such as the sale of prepared food and drinks, goods or merchandise, and hotel rentals or other accommodations. It doesn’t apply to things such as groceries or medications, which are tax-exempt.Counties and cities can also levy a local sales tax on top of the state one, bringing the total sales tax up to 11.2% in some areas
Counties and cities can also levy a local sales tax on top of the state one, bringing the total sales tax up to 11.2% in some areas State of Colorado. Colorado Sales Tax Lookup. Accessed Dec 12, 2025. . According to the Tax Foundation, the average local tax rates across the state hover around 4.96%, placing Colorado in the top five states with the highest local average sales tax in the nation Tax Foundation. State and Local Sales Tax Rates, 2023. Accessed Dec 5, 2025. .4 things to know about Colorado income tax
4 things to know about Colorado income taxTax software will do your state taxes, though sometimes for an extra fee. You can also check whether you qualify for an IRS Free File program that covers Colorado state tax.
Tax software will do your state taxes, though sometimes for an extra fee. You can also check whether you qualify for an IRS Free File program that covers Colorado state tax.If you can’t afford your tax bill, Colorado offers payment plans that you can set up online or over the phone.
If you can’t afford your tax bill, Colorado offers payment plans that you can set up online or over the phone.Colorado also has an Offer in Compromise program, which might allow you to pay less than you owe.
Colorado also has an Offer in Compromise program , which might allow you to pay less than you owe.If you’re curious about where your Colorado state tax refund is, check the status of your state refund.
If you’re curious about where your Colorado state tax refund is, check the status of your state refund .Helpful resources
Helpful resources How Federal Tax Brackets and Rates Work Federal Income Tax Calculator and Refund Estimator 2025-2026 25 Popular Tax Deductions and Tax Breaks for 2025-2026 More like this Taxes IRS Free File: What It Is, How It Works Interested in the IRS Free File service? All you need to know about the program, plus other IRS options for free tax filing. 2 By Sabrina Parys, Tina Orem 10 Key IRS Tax Forms, Schedules and Publications for 2026 Here are some major IRS tax forms, schedules and publications everyone should know. Tina Orem 1040 Form: What It Is, How to Fill One Out in 2026 Here's what you need to know about Form 1040: the mother of all tax forms. 2 By Tina Orem, Sabrina Parys Get started Get startedon Priority Tax Relief's website
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