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What is Colorado's income tax rate?

Colorado has a flat 4.4% income tax rate for 2024. The statutory rate is 4.55%, but TABOR (Taxpayer's Bill of Rights) requires excess revenues to be refunded — this mechanism temporarily reduced the effective rate to 4.4%. The rate could change annually based on revenue. Colorado uses federal taxable income as the starting point, so the federal standard deduction also applies for state purposes.

What is TABOR and how does it affect CO taxes?

TABOR (Taxpayer's Bill of Rights) is a unique Colorado constitutional provision limiting state revenue growth to inflation + population growth. When revenues exceed the cap, the excess must be returned to taxpayers — typically as income tax rate reductions or direct refunds. This is why Colorado's actual income tax rate (4.4%) is lower than the statutory rate (4.55%) in boom years.

Does Colorado have any local income taxes?

No local income taxes — but Denver, Glendale, and a few other CO municipalities charge an Occupational Privilege Tax (OPT) of $2–$5.75/month per employee. It's a flat dollar amount, not percentage-based, so the impact is negligible. No CO city taxes income like Philadelphia or NYC.

How does Colorado rank for tax burden?

Colorado is generally considered a moderate-tax state. 4.4% flat income tax + 2.9% state sales tax (local adds 2–4% more in Denver area) + moderate property taxes (~0.51% effective rate). Denver area home values have soared, but property tax rates remain low. Overall, Colorado's total tax burden is below the national median.