Colorado Take-Home Pay Calculator (2026)

Colorado has a flat income tax rate of 4.4%. Every dollar of taxable income is taxed at the same rate, regardless of how much you earn. The rate was reduced from 4.55% in 2022 as part of a voter-approved measure under Colorado's Taxpayer's Bill of Rights (TABOR), which requires excess state revenues to be returned to taxpayers through rate reductions or refunds.

TABOR is an important feature of Colorado's tax environment. The state constitution caps revenue growth, and when collections exceed the limit, refunds are issued. In recent years, Colorado taxpayers have received TABOR checks worth hundreds of dollars annually, effectively reducing the net state tax burden below the headline 4.4% rate. The refund amount varies by year depending on how much the state collected above the cap.

Colorado conforms to federal adjusted gross income as the starting point for its state return, meaning most of the standard deductions and adjustments workers take on the federal return carry over. The state does not have a separate standard deduction in the same way, but conformity to federal AGI means many income adjustments are already reflected before the 4.4% rate applies.

Denver and other Colorado municipalities do not impose a local income tax on wages, but Denver does charge a small occupational privilege tax. It is a flat $5.75 per month for employees earning over $500 per month in the city. That is a minor additional cost, not a percentage-based income tax. Most Colorado workers see a predictable state tax deduction of 4.4% of their taxable wages each paycheck.