4.4% flat rate (down from 4.55% in 2020, protected by TABOR constitutional tax limit)
Colorado has a 4.4% flat income tax on all income - a moderate rate nationally. At $100,000 income, Colorado residents pay $4,400 state tax (4.4% effective rate) plus $12,908 federal tax. Colorado's tax rate decreased from 4.55% to 4.4% in 2020, and the state constitution's TABOR amendment requires voter approval for any future tax increases, providing long-term predictability.
Colorado has a 4.4% flat income tax on all income, applying the same rate to everyone regardless of income level. This makes Colorado's tax structure simple and predictable. Everyone from minimum wage workers to tech executives pays exactly 4.4% on their Colorado taxable income.
How Colorado got here - TABOR and tax cuts: Colorado's income tax was 4.63% from 1999-2019, then dropped to 4.5% in 2019 and 4.4% in 2020. These cuts were enabled by TABOR (Taxpayer Bill of Rights), a 1992 constitutional amendment that limits government spending growth and requires voter approval for any tax increases above inflation + population growth. TABOR has made Colorado one of the most tax-friendly states in the region, though it's controversial (critics say it underfunds schools/infrastructure, supporters say it protects taxpayers).
How it compares regionally:
The TABOR effect - tax stability: Because TABOR requires voter approval for tax increases, Colorado's 4.4% rate is unlikely to increase without a public vote. Since 1992, voters have rejected most tax increase proposals. This gives businesses and residents long-term tax certainty that most states lack. However, TABOR also means Colorado ranks 40th nationally in per-capita K-12 education spending - the tradeoff for low taxes.
The catch - wildly varying local taxes: Colorado has no local income tax, but sales tax varies massively: 2.9% state + 0-8.3% local = up to 11.2% combined in mountain resort towns (Breckenridge, Vail, Aspen). Denver is 8.81%. Property tax is moderate at 0.48% average, but actual rates vary 0.2-1.5% by county (mountain resort counties have lower rates because tourism revenue subsidizes residents).
Source: Colorado Department of Revenue - Individual Income Tax
Here's what Colorado residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $2,200 | $6,366 | $43,634 | 12.7% |
| $75,000 | $8,340 | $3,300 | $11,640 | $63,360 | 15.5% |
| $100,000 | $12,908 | $4,400 | $17,308 | $82,692 | 17.3% |
| $150,000 | $25,218 | $6,600 | $31,818 | $118,182 | 21.2% |
| $250,000 | $54,094 | $11,000 | $65,094 | $184,906 | 26.0% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Colorado takes $4,400 in state tax alone.
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Planning a move to or from Colorado? Multi-state filing is complex. Get matched with a CPA who handles Colorado taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Colorado experienced net immigration of 9,025 residents. Top origin states were:
Outflow: Colorado lost residents to:
Why people move to Colorado (the outdoor lifestyle tax):
Why people leave Colorado (the affordability crisis):
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Colorado |
|---|---|---|---|
| Colorado | 4.4% flat | $4,400 | Baseline |
| Wyoming | 0% | $0 | -$4,400 (less tax) |
| Utah | 4.65% flat | $4,650 | +$250 (more tax) |
| New Mexico | 1.7-5.9% | $4,280 | -$120 (less tax) |
| Kansas | 3.1-5.7% | $4,950 | +$550 (more tax) |
Key insight: Colorado's 4.4% flat tax is competitive regionally. At $100K income, CO is $120-$550 cheaper than NM/KS/UT but $4,400 more expensive than WY (0%). At $150K, CO saves $180-$825 vs NM/KS/UT. Colorado's advantage is Denver metro job market + outdoor lifestyle justify the moderate tax vs WY's small-town limited economy.
But consider the full picture - total tax burden:
The Wyoming question - is 0% tax worth it?
The California refugee math (CO is a top destination):
Property tax comparison (critical for homeowners):
Bottom line for tech workers/outdoor enthusiasts at $120K + $590K Denver home:
Result: Colorado's 4.4% flat tax + TABOR protection + moderate property tax makes it competitive for California refugees willing to trade ocean/perfect weather for mountains/300 sunny days. The "outdoor lifestyle tax" (4.4% vs WY 0%) is worth it for most who can afford Denver housing.
TABOR (Taxpayer Bill of Rights) is a 1992 Colorado constitutional amendment that limits government spending growth to inflation + population growth and requires voter approval for any tax increases. This means Colorado's 4.4% income tax rate cannot increase without a public vote. Since 1992, voters have rejected most tax increase proposals, keeping rates stable. TABOR has saved taxpayers billions but critics argue it underfunds schools and infrastructure (CO ranks 40th nationally in K-12 per-pupil spending). For individuals, TABOR provides long-term tax predictability rare in other states.
It depends on your income and priorities. At $100K income: save $1,362/year CO vs CA state tax ($5,762 CA - $4,400 CO). At $150K: save $4,162/year. Housing costs 25-50% lower (Denver $590K vs LA $780K, SF $1.3M). But CO salaries 15-25% lower (Denver tech $100-150K vs SF $150-250K same role). Best for: outdoor enthusiasts willing to trade ocean for mountains, mid-career professionals ($100-200K range), families seeking lower cost. Not ideal for: maximizing career earnings (SF/LA pay more), perfect weather lovers (CO has real winter, wildfire smoke summers).
Only if remote. Colorado taxes all income earned while CO resident, and taxes income earned in CO even for nonresidents. If you live in Cheyenne WY (45 min to Denver) and work in Denver, you pay CO 4.4% tax on your CO wages - no savings. Wyoming has a reciprocity agreement with CO for wage withholding but doesn't eliminate CO tax on CO-source income. Only way to benefit from WY 0% tax: work 100% remotely for out-of-state employer while WY resident. This saves $4,400/year at $100K income but requires committing to Wyoming residency (6+ months/year in WY, WY voter registration, WY license).
Partially. Social Security: Colorado taxes SS income if you're under 65 OR (if 65+) your federal AGI exceeds $75K single/$95K married. At age 65+ with income under thresholds, SS is fully exempt. Pension/401k: Taxed at 4.4% for all ages, but age 55-64 can deduct up to $20K/year, age 65+ can deduct up to $24K/year (2026 amounts). Example: Age 66 with $40K SS + $60K pension/401k = $100K total. SS fully exempt (over 65, income thresholds don't apply to couples under $95K), pension taxed on $36K (after $24K deduction) = $1,584 CO tax. This is moderate vs CA ($5,762 at $100K) but worse than TX/FL/NV (0%).
Colorado's property tax (0.48% average) is low but homes are expensive, and sales tax varies wildly. At $100K income with $590K Denver home: $4,400 state income + $2,832 property (0.48%) + $4,405 sales (8.81% on $50K spending) = $11,637 total state/local tax (11.6% of income). Compare to California at $100K with $590K home: $5,762 income + $4,366 property (0.74%) + $3,625 sales (7.25%) = $13,753 total (13.8%). Colorado saves $2,116/year. But mountain resort towns: 11.2% sales tax (Breckenridge, Vail) on $50K spending = $5,600/year vs $4,405 Denver. Location matters significantly in CO.
How we calculate: Colorado uses a simple 4.4% flat tax on all Colorado taxable income (federal AGI minus Colorado standard deduction of $13,850 for single filers in 2026, or itemized deductions if greater). Our calculator applies the 4.4% rate to taxable income and adds federal income tax using official 2026 IRS brackets. We calculate effective tax rates by dividing total tax by gross income. For comparison purposes, we show neighboring states' tax calculations at the same income levels using their official 2026 tax brackets and rates.
Data sources:
Verification: Colorado's 4.4% flat tax rate verified against Colorado Revised Statutes Title 39 Article 22 (Income Tax) and Colorado Department of Revenue 2026 tax guidance published January 2026. TABOR constitutional provisions verified against Colorado Constitution Article X Section 20. Federal tax bracket accuracy verified against IRS Revenue Procedure 2025-58 (2026 inflation adjustments). Migration data sourced from IRS Statistics of Income (SOI) Tax Stats via Census Bureau. Property tax and sales tax averages calculated from Colorado Department of Revenue 2025 annual report.
Limitations: Assumes single filer with W-2 income only, standard deduction (not itemized), Colorado full-year residency. Does not include: Colorado-specific deductions (charitable contributions to qualifying organizations, 529 plan contributions, pension/Social Security exemptions for 55+/65+), federal tax credits (EITC, child tax credit), part-year or nonresident calculations, self-employment tax, local sales tax variations (2.9% state + 0-8.3% local = 5.9-11.2% total), property tax variations by county (mountain resort counties 0.2-0.5%, Front Range suburbs 0.5-0.8%, rural counties 0.6-1.5%). Retirement income calculations simplified - actual SS taxation depends on age and federal AGI thresholds.
For complex situations: Consult a licensed Colorado CPA or tax attorney, especially for: part-year residency (Colorado taxes income earned while CO resident), multi-state income allocation (telecommuters working for out-of-state employers, especially CA which may claim tax on CA-source income), Social Security taxation (complex rules for ages 55-64 and income over thresholds), pension deductions (age-specific limits), rental property income (depreciation, passive loss rules), business income (Colorado pass-throughs taxed at 4.4% individual rate), TABOR refunds in high-revenue years (taxpayers receive refunds when state revenue exceeds TABOR limit, mechanism varies by year).
These calculations are estimates for informational purposes only and reflect 2026 Colorado tax law (4.4% flat rate on Colorado taxable income). Tax situations vary based on filing status, deductions, credits, income types, and residency status. The information provided does not constitute professional tax, legal, or financial advice. Colorado tax law is subject to TABOR restrictions (constitutional amendment limiting tax increases) but rates can still change. Does not include local sales tax variations (2.9% state + 0-8.3% local = 5.9-11.2% total), property tax variations by county, Colorado-specific deductions (pension/Social Security exemptions age 55+/65+, charitable contributions, 529 plans), or TABOR refunds. Federal tax laws change annually. Always verify current rates with the Colorado Department of Revenue and IRS, and consult a licensed tax professional for advice specific to your situation, especially for part-year residency, multi-state income, Social Security taxation, or retirement income planning.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026