How much is Colorado income tax?
Colorado income tax at 3 levels of Colorado taxable income — what is left after Colorado's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $2,2004.4% effective · 4.4% marginal | $2,2004.4% effective · 4.4% marginal |
| $100,000 | $4,4004.4% effective · 4.4% marginal | $4,4004.4% effective · 4.4% marginal |
| $250,000 | $11,0004.4% effective · 4.4% marginal | $11,0004.4% effective · 4.4% marginal |
What is Colorado's income tax rate for 2026?
| Taxable income | Rate |
|---|---|
| All taxable income | 4.4% |
Colorado has not published its 2026 rate schedule yet, so these are the 2025 rates and brackets — the newest Colorado has issued.
Source: CDOR Individual Income Tax Guide (rev. January 2026), checked September 11, 2026.
Can you deduct Colorado income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Colorado taxable income owes about $11,000 in Colorado income tax — 27% of that cap before any property tax.
SALT cap workaroundsDoes Colorado have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Colorado income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim a Colorado credit or exclusion for it. Deductsy's plan treats March 15 as the Colorado election or first-payment deadline; it is approximate, so confirm it with Colorado before relying on it.
PTET savings calculatorWhen are Colorado estimated tax payments due?
Colorado estimated tax is due April 15, June 15, September 15 and January 15 of the following year, in 4 equal instalments. Those are the same dates as the federal schedule. Source: DR 0104EP, Individual Estimated Income Tax Instructions 2026 (DR 0104EP (06/10/25)).
Safe-harbor calculatorWhat is the penalty for underpaying Colorado estimated tax?
Colorado charges interest on an underpaid instalment at the rate it publishes each year: 11% for 2026. Paying at least 70% of this year's tax or 100% of last year's (110% if federal AGI was over $150,000) on time avoids it. No estimated payments are required if you expect to owe less than $1,000. Source: Colorado Tax Topics: Penalties and Interest (Revised October 2025) — Annual Interest Rates on Tax Underpayments.
Are HSA contributions deductible in Colorado?
Yes. Colorado follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Colorado taxable income as well as federal.
Does Colorado give a tax break for 529 plan contributions?
Yes. Colorado lets you deduct up to $26,200 a year of contributions to Colorado's own 529 plan ($39,200 on a joint return). Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorDoes Colorado take a disability or paid-leave tax out of paychecks?
Yes. Colorado employees pay CO FAMLI through payroll: 0.45% of wages for 2026, on wages up to $184,500. It comes out on top of federal payroll taxes and Colorado income tax withholding.
What is the property tax rate in Colorado?
Colorado's average effective property tax rate is 0.48% — tied for the 46th highest of 51 jurisdictions and 53% of the national average of 0.9%. That is about $480 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Colorado each year?
Deductsy budgets about $10 a year for a Colorado LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with Colorado's business filing office.
Colorado S-corp tax calculatorHow do Colorado taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Colorado | 4.4% | $4,400 | 0.48% |
| Kansas | 5.58% | $5,493 | 1.29% |
| Nebraska | 4.55% | $4,249 | 1.49% |
| New Mexico | 5.9% | $4,358 | 0.7% |
| Oklahoma | 4.5% | $4,285 | 0.8% |
| Utah | 4.45% | $4,450 | 0.52% |
| Wyoming | None | $0 | 0.57% |
On $100,000 of taxable income a single filer's Colorado income tax is $4,400 — more than in 4 of 6 neighboring states. The lowest is Wyoming at $0; the highest is Kansas at $5,493. Colorado's average property tax rate is higher than in none of the 6.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
More Colorado tax notes
- Colorado's flat rate is reset through the TABOR revenue mechanism after each fiscal year closes, and it has moved in both directions.
Tax moves that matter most for Colorado
If you own an S corporation, partnership or multi-member LLC, Colorado's PTET election moves the Colorado income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Colorado calculator adds Colorado's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Colorado income tax.
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