Compare taxes and see how much you save moving from California to Colorado
Colorado has a flat 4.4% income tax, while California has progressive rates up to 13.3%. A $150,000 earner saves approximately $4,162 per year by moving from California to Colorado. Property taxes favor Colorado (0.49% vs CA's 0.73%), though both states have constitutional protections (CO's TABOR amendment vs CA's Prop 13). Colorado's TABOR (Taxpayer Bill of Rights) requires voter approval for tax increases, making it one of the most tax-friendly constitutional frameworks in America. The 2023 migration data is stunning: 102,000 people moved from California to Colorado, driven by remote work flexibility, lower taxes, comparable outdoor lifestyle, and significantly lower cost of living (Denver is 18% cheaper than Los Angeles).
Highest in Nation
10 progressive brackets from 1% - 13.3%
Flat Tax
Single flat rate (simplified from 4.55% in 2023)
At $150,000 income:
That is $347/month back in your pocket!
| Income | CA Tax | CO Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $1,516 | $2,200 | -$684 | -$6,840 |
| $75,000 | $3,641 | $3,300 | $341 | $3,410 |
| $100,000 | $5,762 | $4,400 | $1,362 | $13,620 |
| $150,000 | $10,962 | $6,800 | $4,162 | $41,620 |
| $250,000 | $22,512 | $11,000 | $11,512 | $115,120 |
| $500,000 | $61,012 | $22,000 | $39,012 | $390,120 |
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Moving from California to Colorado? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →Savings depend on income. At $75K: ~$341/year. At $100K: ~$1,362/year. At $150K: ~$4,162/year. At $250K: ~$11,512/year. At $500K: ~$39,012/year. California's progressive rates hit harder as income rises—at $150K you're in CA's 9.3% bracket vs CO's flat 4.4%. Property tax also favors Colorado (0.49% vs 0.73%).
102,000 people moved from California to Colorado in 2023, making it one of the largest interstate migration flows in America. The exodus is driven by remote work (keep CA salary, cut taxes and cost of living), tech corridor growth in Denver/Boulder, comparable outdoor lifestyle (skiing vs surfing), and significantly lower housing costs.
Yes, significantly. Denver's cost of living is 12% cheaper than San Francisco and 18% cheaper than Los Angeles. Housing costs drive most of the difference—median home in Denver is ~$550K vs $900K+ in coastal California. Combined with lower income tax (4.4% vs up to 13.3%) and lower property tax (0.49% vs 0.73%), a $150K earner in Denver has far more purchasing power than in California.
Colorado has lower property tax rates (0.49% vs CA's 0.73%). However, California's Proposition 13 caps annual increases at 2% and locks in your tax basis at purchase price, making it better for very long-term homeowners. Colorado has TABOR constitutional protection, which requires voter approval for tax increases. Both states have strong taxpayer protections, but CO wins on current rates.
TABOR (Taxpayer Bill of Rights) is a Colorado constitutional amendment requiring voter approval for any tax increases or new taxes. It also limits government spending growth to inflation + population growth, with excess revenue refunded to taxpayers. TABOR is one of the strongest taxpayer protections in America—legislators cannot raise taxes without a public vote. This makes Colorado's 4.4% flat tax highly stable.
No, as long as you're a Colorado resident performing work physically in Colorado. California cannot tax non-residents on income earned outside California. However, California's FTB may audit you to verify you truly live in Colorado. Keep documentation: CO lease, utility bills, driver's license, voter registration, and time logs showing days in each state.
Yes, if the California Franchise Tax Board determines you're still a California resident. They track days spent in CA (safe harbor: <183 days/year), driver's license, voter registration, professional licenses, and property ownership. To safely leave, establish genuine Colorado residency: get CO license, register to vote, open local bank accounts, and minimize CA ties. High earners should document everything—FTB audits are common.
For high earners, absolutely. Colorado's 4.4% flat rate is simple and predictable. California's progressive rates start at 1% but climb to 9.3% at $61K (single) and 13.3% at $1M+. At $150K income, you're in CA's 9.3% bracket—more than double CO's 4.4%. The flat tax also simplifies tax planning (no bracket management) and makes income growth tax-neutral.
For earners above $100K, the tax savings ($1,362-$39K/year) combined with lower cost of living make Colorado attractive financially. The lifestyle comparison is also favorable: both states are outdoor-focused (CO skiing vs CA surfing), both have 300+ sunny days, and both have strong tech sectors. Denver/Boulder offer comparable careers to SF/LA but with far lower housing costs. For families earning $150K+, the combination of $4,162/year tax savings plus 18% lower cost of living is compelling.
Colorado taxes capital gains as ordinary income at the flat 4.4% rate. California taxes capital gains as ordinary income up to 13.3%. Selling a $1M business: CA tax = $133K, CO tax = $44K—you save $89K by establishing Colorado residency before a liquidity event. Both states also have federal capital gains (0-20% depending on income), but CO's 4.4% state rate is far better than CA's 13.3%.
Weather: Cold winters with snow (not for everyone). Geography: Landlocked (no beaches, though mountain lakes are stunning). Altitude: Denver is 5,280 feet—thinner air takes adjustment. Growth: Denver/Boulder growing fast, traffic and housing costs rising. Taxes: 4.4% is low but not zero (TX/FL/NV are 0%). If you love beach culture, mild year-round weather, and California's massive economy, CO may not replace CA's lifestyle despite the tax savings.