Key Tax Facts: Colorado
- Flat 4.4% rate, reduced from 4.55% in 2022
- TABOR refunds may further reduce effective state tax burden
- Pension income exemptions available for those 55 and older
- Starts from federal taxable income with limited modifications
Estimate Your 2026 Federal and Colorado State Income Tax
Colorado State Income Tax Overview
Colorado has a flat state income tax rate of 4.4% on all federal taxable income, making it one of the more straightforward states for income tax planning. Because Colorado starts with federal adjusted gross income and makes limited modifications, residents generally find state tax preparation simpler than in states with their own complex bracket systems. Colorado also offers a Taxpayer's Bill of Rights (TABOR) provision that can trigger refunds when state revenue exceeds a defined limit. The state does not allow a separate standard deduction - it piggybacks on the federal AGI instead.
What Is Different About Colorado's Income Tax
Deductions and exemptions
Colorado starts from federal taxable income, so the federal standard or itemized deduction flows through automatically. Since 2023 the state adds back itemized deductions above a cap for filers with adjusted gross income over $300,000. Residents can subtract certain items the federal return includes, such as state income tax refunds.
Credits worth knowing
Colorado's earned income credit is worth 50% of the federal credit for 2025, one of the most generous state matches, and the state child tax credit pays up to $3,200 per child under six for low-income families. There is also a child care expenses credit and a credit for taxes paid to other states. TABOR refunds may be paid as a flat credit on the return.
Retirement, capital gains, and other income
Taxpayers 55 to 64 can subtract up to $20,000 of retirement income, and those 65 and older up to $24,000; since 2022 Social Security is fully deductible for filers 65 and older. Military retirement pay is subtracted for those under 55 up to a cap. Capital gains are taxed at the 4.4% flat rate, with a subtraction for gains on certain Colorado assets held five years or more.
Rules summarized from the Colorado Department of Revenue guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Colorado Income Tax Rate (2026) projected
Colorado uses a flat income tax rate -- the same percentage applies to all taxable income regardless of how much you earn.
Source: Colorado Department of Revenue
What a Colorado Resident Actually Pays: A Worked Example
| Taxable Income | $65,000.00 |
| Colorado Flat Rate | 4.4% |
| Estimated State Tax | $2860.00 |
| Effective Rate | 4.4% |
Where Colorado Stands Among the 50 States
Colorado's top rate of 4.4% ranks #29 of the 41 states that tax wages. The median top rate across those 41 states is 5.2%, so Colorado is below the middle of the pack. It is one of 14 states with a single flat rate, so every taxable dollar is taxed at 4.4% and the effective rate never climbs with income the way it does in the 27 graduated-rate states.
On sales tax the picture is similar: Colorado's combined state and average local rate of 7.77% ranks #16 of 50, against a national median of 7.00%.
Colorado State Tax at Five Income Levels (2026, single filer)
| Taxable income | Colorado tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,760 | 4.40% | 4.4% |
| $65,000 | $2,860 | 4.40% | 4.4% |
| $100,000 | $4,400 | 4.40% | 4.4% |
| $150,000 | $6,600 | 4.40% | 4.4% |
| $250,000 | $11,000 | 4.40% | 4.4% |
Brackets applied directly to the taxable-income figure shown, before Colorado-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Colorado vs. Its Neighbors on $75,000 of Taxable Income
A Colorado resident with $75,000 of taxable income pays about $3,300 in state income tax. Of Colorado's 7 neighboring states, 3 would tax that income less and 4 would tax it more.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Colorado (you) | Flat | $3,300 | 4.4% | 7.77% |
| Wyoming | No income tax | $0 | None | 5.36% |
| Arizona | Rate to 2.5% | $1,875 | 2.5% | 8.37% |
| New Mexico | Rate to 5.9% | $3,133 | 5.9% | 7.82% |
| Oklahoma | Rate to 4.75% | $3,374 | 4.75% | 8.98% |
| Utah | Rate to 4.5% | $3,375 | 4.5% | 7.19% |
| Nebraska | Rate to 5.2% | $3,422 | 5.2% | 6.94% |
| Kansas | Rate to 5.58% | $4,098 | 5.58% | 8.68% |
Frequently Asked Questions -- Colorado Income Tax
Does Colorado have a state income tax?
Yes. Colorado imposes a state income tax with a flat rate of 4.4%. This is separate from your federal income tax obligation.
What is the Colorado income tax rate for 2026?
Colorado uses a flat income tax rate of 4.4% on all taxable income, regardless of income level or filing status.
Do I have to file a Colorado state tax return?
Most full-year Colorado residents with income above the state filing threshold must file a state return. Check the Colorado Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Colorado figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Colorado-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Colorado Department of Revenue or a tax professional before filing.
How does Colorado compare with nearby states?
On $75,000 of taxable income, Colorado collects about $3,300. Wyoming collects $0, Arizona collects $1,875, New Mexico collects $3,133, Oklahoma collects $3,374, Utah collects $3,375, Nebraska collects $3,422, Kansas collects $4,098. See the comparison table above.
Where does Colorado rank on state income tax?
Colorado's top rate of 4.4% ranks #29 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 7.77% ranks #16 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Colorado rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Colorado tax forms?
Official forms, instructions, and filing guidance are available at the Colorado Department of Revenue.
What is the sales tax rate in Colorado?
Colorado's combined state and average local sales tax rate is 7.77%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Colorado 2026 state taxes due?
2026 taxes are generally filed in 2027. The Colorado filing deadline is April 15, 2027, the same as the federal deadline.
Understanding Your Colorado Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Colorado state tax owed to the Colorado Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Colorado Bill
Pre-tax retirement contributions reduce your federal and Colorado taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Colorado-specific credits and deductions that don't exist at the federal level are listed at the Colorado Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Colorado's combined state-plus-average-local sales tax rate is 7.77%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Colorado Department of Revenue or a qualified tax professional for guidance specific to your situation.