Colorado State Income Tax: Rates, Who Pays in 2026

Colorado State Income Tax: Rates and Who Pays in 2026

Unlike many other states with progressive tax structures, Colorado taxes income at a flat rate.

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Updated Dec 12, 2025

Colorado is one of 14 states with a flat income tax. Its approach is different from how the federal government and most other states collect taxes.

Colorado state income tax rate

For tax year 2025, Colorado’s state income tax rate is 4.4%. This rate applies to income tax returns filed in 2026.

» MORE: See what federal tax bracket you’re in

Why is the tax rate higher than last year?

Due to the passage of a May 2024 Senate bill, Colorado's state income tax rate can be reduced based on excess state revenue until 2034. The state tax rate was reduced to 4.25% for the 2024 tax year, but there has been no indication that the tax rate will be reduced for the 2025 tax year.

Colorado's net excess revenue was reportedly $293.3 million in 2025, and the state income tax is only reduced if excess revenue is above $300 million (as outlined in the table below). Excess revenue first goes toward property tax exemptions.

Excess revenue	Tax rate reduction
Above $300 million but not more than $500 million.	0.04%.
Above $500 million but not more than $600 million.	0.07%.
Above $600 million but not more than $700 million.	0.09%.
Above $700 million but not more than $800 million.	0.11%.
Above $800 million but not more than $1 billion.	0.12%.
Above $1 billion but not more than $1.5 billion.	0.13%.
Above $1.5 billion.	0.15%.
Source: Colorado General Assembly.

When are Colorado state income taxes due?

Colorado state income tax returns are due April 15, 2026, which mirrors the federal tax deadline. People who need more time to file get an automatic six-month extension, but they must pay at least 90% of their tax bill by April 15 to avoid incurring penalties and interest.

What is Colorado’s standard deduction?

Unlike some other states, Colorado does not have a state standard deduction. This is because a taxpayer’s federal taxable income — which already takes into account the application of the federal standard deduction or the taxpayer's itemized deductions — is generally used as a basis for calculating taxes owed to Colorado.

Filers who make over a certain amount of income, however, may also be asked to add back in a portion of their federal standard or itemized deductions when figuring their Colorado taxable income. See the Individual Income Tax Guide on the Colorado Department of Revenue’s website for more information.

» MORE: Learn about the federal standard deduction and when to take it

Do I have to pay Colorado state income tax?

Colorado residents and part-year residents who file a federal tax return typically also need to file a Colorado state income tax return. Nonresidents who earn Colorado-sourced income may also have a filing obligation.

If your Colorado residency type is ...	Colorado taxes this part of your income
Resident	All income from all sources inside and outside Colorado.
Part-year resident	All income received while a resident, plus income from Colorado sources while a nonresident.
Nonresident	Income from Colorado sources.

» MORE: How much do I need to make to file a federal income tax return?

Am I a resident for Colorado income tax purposes?

There are three types of residency statuses when it comes to Colorado state tax. They determine what portion of your income the state will tax.

Resident status rules

Colorado generally considers you a resident for tax purposes if:

You have a permanent home in Colorado to which you return after traveling from the state. This home could be a rental, condo, house or mobile home; or
You maintain a permanent home in Colorado and spend more than six months (182 days) of the year in the state.

Students who attend college in a state outside Colorado, do not intend to establish residency in that state post-graduation or are supported by parents who live in Colorado while in school are considered residents of Colorado by the state taxing authority — regardless of whether they voted or applied for a driver’s license or ID in the state where they attend college.

Special rules may apply to military personnel or service members and to those who file jointly with someone who is a resident of Colorado, even if they themselves are not. The Colorado Department of Revenue’s website has the details.

Residents of Colorado file Form DR 0104.

Part-year resident status rules

If you lived in Colorado when the year started but then moved to another state, you may be considered a part-year resident for Colorado tax purposes. Likewise, if you lived in another state when the calendar year started but then moved to Colorado and took steps to establish residency, you’re also probably considered a part-year resident.

Colorado part-year residents file Form DR 0104 and corresponding schedule DR 0104PN.

Nonresident status rules

Colorado defines nonresidents as people who do not live in Colorado but may have briefly worked in Colorado or made income from Colorado-based sources.

If you’re a nonresident with taxable Colorado income, you may have a state filing obligation if you also must file a federal return. Nonresidents file Form DR 0104 and corresponding schedule DR 0104PN to help calculate Colorado tax liability.

» Need help? How to find a tax preparer near you

Colorado tax credits

Colorado child tax credit (COCTC)

Colorado taxpayers with dependent children who were below the age of 6 in 2025 (i.e., born in 2020 or later) may be able to claim a refundable state-level child tax credit on their state tax returns. The credit is worth a maximum of $1,200 for the 2025 tax year. Taxpayers who made above $77,000 ($87,000 for joint filers) do not qualify.

» Learn about the federal child tax credit

Colorado earned income tax credit (COEITC)

The earned income tax credit is a refundable tax break for low-to-moderate income earners. Qualified Colorado filers can claim Colorado's state-level version that is modeled after the federal benefit. For the 2025 tax year, the COEITC is worth up to 50% of an eligible filer's federal earned income tax credit. To check eligibility, you can access the EITC assistant on the Colorado Department of Revenue's website.

» Learn about the federal earned income tax credit

Colorado sales tax

Colorado’s statewide sales tax is 2.9%. This tax applies to items such as the sale of prepared food and drinks, goods or merchandise, and hotel rentals or other accommodations. It doesn’t apply to things such as groceries or medications, which are tax-exempt.

Counties and cities can also levy a local sales tax on top of the state one, bringing the total sales tax up to 11.2% in some areas. According to the Tax Foundation, the average local tax rates across the state hover around 4.96%, placing Colorado in the top five states with the highest local average sales tax in the nation.

4 things to know about Colorado income tax

Tax software will do your state taxes, though sometimes for an extra fee. You can also check whether you qualify for an IRS Free File program that covers Colorado state tax.
If you can’t afford your tax bill, Colorado offers payment plans that you can set up online or over the phone.
Colorado also has an Offer in Compromise program, which might allow you to pay less than you owe.
If you’re curious about where your Colorado state tax refund is, check the status of your state refund.

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Article sources

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1.Colorado General Assembly. TABOR Refund Mechanisms. Accessed Jan 28, 2025.
2.Colorado General Assembly. SB24-228 TABOR Refund Mechanisms. Accessed Dec 8, 2025.
3.Colorado Office of the State Auditor. Schedule of TABOR Revenue Fiscal Year 2025. Accessed Dec 8, 2025.
4.Colorado Department of Revenue. Colorado Individual Income Tax Filing Guide. Accessed Dec 5, 2025.
5.Colorado Department of Revenue. Individual Income Tax Guide. Accessed Dec 5, 2025.
6.Colorado Department of Revenue. 2025 Colorado Child Tax Credit. Accessed Dec 5, 2025.
7.Colorado Department of Revenue. Income Tax Topics: Earned Income Tax Credit. Accessed Dec 5, 2025.
8.Colorado Department of Revenue. EITC Assistant. Accessed Dec 5, 2025.
9.State of Colorado. Colorado Sales Tax Lookup. Accessed Dec 12, 2025.
10.Tax Foundation. State and Local Sales Tax Rates, 2023. Accessed Dec 5, 2025.