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Colorado State Income Tax Rate 2026 | 4.4% Flat + TABOR

Daniel · CountryTaxCalc Updated October 2026
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KEY INSIGHT
At $100,000 gross income, a Colorado single filer pays approximately $3,692 in state income tax — an effective rate of 3.69%. Colorado's flat 4.4% rate applies uniformly to all income levels. Colorado allows an age-based Social Security subtraction (full for 65 and older; under 65 depends on age and income), and TABOR refunds may further reduce what residents owe.
At a glance

Key Facts

State Income Tax Rate (2026)
Flat 4.4% on all Colorado taxable income — no brackets, same rate at every income level
At $100,000 Income (Single)
$100,000 − $16,100 std deduction = $83,900 taxable; 4.4% × $83,900 = $3,692 Colorado tax (3.69% effective rate)
Standard Deduction
$16,100 (single) / $32,200 (MFJ) — Colorado conforms to federal standard deduction for 2026
TABOR Refunds
When Colorado's revenue exceeds constitutional limits, the excess is refunded to taxpayers — the rate was temporarily cut to 4.25% for 2024 only
Social Security
Age-based subtraction for federally taxable benefits: full for age 65 and older; ages 55–64 full if federal AGI is at most $75,000 single / $95,000 joint, otherwise capped at $20,000 (2025 return rules)
Property Tax
~0.51% effective average — one of the lowest in the US; TABOR and historic amendments constrain assessment growth
Local Income Tax
None — no Colorado city levies a local income tax on residents' wages
Introduction

Colorado's income tax system is one of the simplest in the United States: a flat 4.4% rate applies to all taxable income, regardless of how much you earn. There are no brackets, no phase-outs based on income, and no complex calculations — just a single rate applied after subtracting the standard deduction ($16,100 for single filers in 2026).

Colorado also has a unique constitutional provision called TABOR (Taxpayer's Bill of Rights) that requires excess state revenue to be refunded to taxpayers. In one recent year (2024) the income tax rate was temporarily reduced to 4.25% under the TABOR-linked mechanism. Social Security can be subtracted (age-based), property taxes average a very low ~0.51%, and no Colorado city imposes a local income tax — making Colorado one of the more tax-efficient states in the Mountain West.

Section 01

Colorado's 4.4% Flat Income Tax Rate

Colorado imposes a single flat income tax rate of 4.4% on all taxable income, regardless of how much you earn. There are no brackets — a person earning $30,000 pays the same percentage as someone earning $3,000,000. Colorado taxable income starts with federal adjusted gross income, with certain Colorado-specific additions and subtractions applied. The 4.4% rate has applied since tax year 2022, with a temporary reduction to 4.25% for 2024 only under Colorado's TABOR mechanism. This simplicity makes Colorado tax returns relatively straightforward compared to states with multiple brackets.
Section 02

TABOR — Colorado's Revenue Refund Mechanism

Colorado's Taxpayer's Bill of Rights (TABOR) requires the state to refund excess revenue to taxpayers when state income exceeds TABOR growth limits. When triggered, TABOR refunds can temporarily lower Colorado's effective tax rate below 4.4% for the year in question. Depending on the year, the refund may take the form of a temporary income tax rate reduction (as in 2024, when the rate was 4.25%) or a refund claimed through the Colorado income tax return; the mechanism and amounts vary by year. The 4.4% rate shown is the baseline; check the Colorado Department of Revenue for any active TABOR rate adjustments for the current tax year.
Section 03

Social Security and Retirement Income Exemptions

Colorado allows a subtraction for federally taxable Social Security benefits that depends on age: taxpayers 65 and older may subtract the full amount, while ages 55–64 may subtract it in full if federal AGI is at most $75,000 (single) or $95,000 (joint) and are otherwise limited to $20,000 (2025 return rules). Colorado also provides a pension and annuity subtraction of up to $20,000 (age 55–64) or $24,000 (age 65 and older), reduced by any Social Security subtraction claimed. Colorado is generally considered retirement-friendly from an income tax perspective.
Section 04

Colorado Property Tax — Low Effective Rates

Colorado's effective property tax rate averages approximately 0.51% — one of the lowest in the US. On a $400,000 home, that's roughly $2,040 per year. Colorado's low property taxes were partly a result of the former Gallagher Amendment (which capped residential assessment ratios and was repealed by voters in 2020) and TABOR limitations on local government revenue. In recent years, some Colorado jurisdictions have seen property tax increases due to rapidly rising home values, but the effective rate remains low by national standards.
Section 05

Colorado vs Neighboring States

Compared to its neighbors, Colorado's flat 4.4% rate sits in the middle of the spectrum. Utah has a similar flat rate (4.45%). Wyoming has no income tax. Kansas has brackets up to 5.58%. New Mexico brackets reach 5.9%. At $100,000 income, a Colorado resident pays approximately $3,692 in state income tax compared to $0 in Wyoming, approximately $4,450 in Utah (its nonrefundable taxpayer credit has phased out at this income), approximately $3,569 in New Mexico, and approximately $4,780 in Kansas. Wyoming is the primary tax alternative for high-income Colorado residents, though Wyoming's lifestyle and economic opportunities differ significantly.
Section 06

Denver Local Taxes

Denver does not levy a city or local income tax on residents' earnings (unlike cities such as New York City, Philadelphia, or Detroit). Denver does impose an Occupational Privilege Tax: $5.75/month withheld from each employee earning $500 or more per month, plus $4.00/month paid by the employer. These amounts are very small compared to the income taxes levied in other major US cities. The absence of a Denver city income tax makes Colorado's total tax burden more favorable for Denver residents than the state rate alone suggests for comparison.
Section 07

Colorado Capital Gains Tax

Colorado taxes capital gains as ordinary income at the same flat 4.4% rate. There is no special capital gains rate at the Colorado state level. Long-term capital gains that receive preferential 0%, 15%, or 20% federal treatment are subject to Colorado's 4.4% flat rate. For investors, Colorado's relatively low 4.4% rate on capital gains compares favorably to California (13.3% on all gains), Oregon (9.9%), and Minnesota (9.85% as ordinary income).
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FAQ

Frequently Asked Questions

What is Colorado's income tax rate for 2026?

Colorado's income tax rate for 2026 is a flat 4.4% on all taxable income. There are no income brackets — everyone pays the same percentage regardless of how much they earn. At $100,000 gross income, the effective rate is approximately 3.69% after subtracting the standard deduction ($16,100 for single filers).

What is TABOR and does it reduce my Colorado taxes?

TABOR (Taxpayer's Bill of Rights) is a Colorado constitutional amendment that requires excess state revenue to be returned to taxpayers. When Colorado's revenue exceeds TABOR limits, the refund may take the form of a temporary income tax rate reduction (as in 2024, when the rate was 4.25%) or a refund claimed through the Colorado income tax return, depending on the year. Check the Colorado Department of Revenue annually for any active TABOR adjustments.

Does Colorado tax Social Security income?

Partly — Colorado allows a subtraction for federally taxable Social Security benefits that depends on age: full for taxpayers 65 and older; for ages 55–64, full if federal AGI is at most $75,000 (single) or $95,000 (joint), otherwise capped at $20,000 (2025 return rules). The separate pension and annuity subtraction is up to $20,000 (age 55–64) or $24,000 (age 65 and older), reduced by any Social Security subtraction claimed.

Does Colorado have local income taxes?

No city in Colorado levies a local income tax on wages. Denver and other cities have small business occupational privilege taxes ($4–$5.75/month per employee) but these are not income taxes on individuals. This means Colorado residents pay only the state flat rate of 4.4% — no additional city tax layered on top, unlike residents of New York City, Philadelphia, or Detroit.

How low is Colorado's property tax?

Colorado's effective property tax rate averages approximately 0.51% — among the lowest in the US. On a $400,000 home, that's roughly $2,040 per year. Colorado's low property taxes are constrained by historical constitutional amendments (Gallagher, TABOR) that limit assessment values and local government revenue growth.

Is Colorado a good state for retirees from a tax perspective?

Yes — Colorado is considered retirement-friendly. Social Security can be subtracted (full for age 65 and older), and the pension and annuity subtraction is up to $20,000 (age 55–64) or $24,000 (age 65 and older), reduced by any Social Security subtraction claimed. The 4.4% flat rate on remaining income is moderate. Combined with low property taxes (~0.51%) and no city income tax, Colorado is one of the better Mountain West states for retiree taxation.

How does Colorado compare to Wyoming for taxes?

Wyoming has no state income tax, which is Colorado's primary tax disadvantage versus its northern neighbor. At $100,000 income, a Colorado resident pays ~$3,692 in state income tax versus $0 in Wyoming — a $3,692 annual difference. However, Wyoming's smaller cities (Cheyenne, Casper) lack the economic opportunities, cultural amenities, and outdoor recreation infrastructure of Denver and Colorado's Front Range metros.

Are capital gains taxed in Colorado?

Yes — Colorado taxes capital gains as ordinary income at the flat 4.4% rate. There is no special capital gains rate at the state level. However, 4.4% is significantly lower than California (13.3%), Oregon (9.9%), or Minnesota (9.85%), making Colorado relatively favorable for investors compared to other western states.
Disclaimer:This guide is for educational purposes only and does not constitute tax or financial advice. Colorado's income tax rate may be adjusted by TABOR refund mechanisms — verify the current rate with the Colorado Department of Revenue. Standard deduction amounts shown are the 2026 federal standard deduction, which Colorado follows. Consult a qualified tax professional for advice specific to your situation.
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