Colorado Paycheck Calculator

Colorado imposes a state income tax of 4.4%. Flat rate with TABOR refunds. Your actual Colorado tax liability depends on your filing status, deductions, and taxable income.

In addition to Colorado state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Colorado has a flat state income tax rate of 4.4%, which is relatively low compared to many states. The Colorado Department of Revenue administers state taxes. One of Colorado's most distinctive features is the Taxpayer's Bill of Rights (TABOR), a constitutional amendment that limits state revenue growth and requires excess revenues to be refunded to taxpayers.

TABOR Refunds: Because of TABOR, Colorado periodically issues refunds to taxpayers when state revenues exceed the allowable limit (typically calculated as inflation plus population growth). These refunds can range from tens to hundreds of dollars depending on income and filing status. This mechanism makes Colorado's effective tax burden variable year to year.

Sales Tax: Colorado's state sales tax rate is 2.9%, with local governments adding 2.5% to 7%, bringing combined rates to up to 11.2% in some areas. Groceries are exempt from state sales tax but may be subject to local taxes.

Marijuana Taxes: Colorado levies a 15% excise tax and a 10% special sales tax on marijuana products, with revenues funding various state programs including public schools and infrastructure.

Colorado's 4.4% flat rate is moderated by the Taxpayer's Bill of Rights (TABOR), which requires excess state revenue to be refunded to taxpayers. The state has a fast-growing tech and outdoor recreation economy.