2026 Colorado State Income Tax

Colorado has a flat state income tax. For tax year 2026, every dollar of Colorado taxable income is taxed at the same rate.

The 2026 Colorado rate

4.4%

Locked in by Proposition 121 (2022). The Colorado Department of Revenue may announce a temporarily lower TABOR-adjusted rate in some filing years if there's a state surplus (e.g. 4.25% in tax year 2023). The calculator models the statutory rate; if you see a different number on your DR-0104, update accordingly.

How Colorado computes taxable income

Unlike many states, Colorado does not have its own standard deduction. The starting point is federal taxable income from your Form 1040 line 15. That is federal AGI minus your federal standard deduction (or itemized deductions). Colorado then adds back a few items (state tax refunds claimed federally, certain interest) and subtracts a few (pension exclusion, social security exclusion if 65+, capital gains exclusion under conditions). For a typical wage earner with no special situations, Colorado taxable income equals federal taxable income.

The calculator models the wage-only path: Colorado tax = 4.4% × federal taxable income.

Worked examples

How this stacks with federal tax

Colorado state tax is owed on top of federal income tax. For a Single filer earning $80,000 of wages with no other income or pre-tax deductions in 2026:

• Federal AGI: $80,000
• Federal standard deduction: $16,100
• Federal taxable income: $63,900
• Federal income tax: $8,770 (per the 2026 federal brackets)
• Colorado tax: 4.4% × $63,900 = $2,811.60
• Combined federal + Colorado: $11,581.60

The Breakeven calculator projects both numbers from your year-to-date paychecks once you select Colorado as your state.

What Colorado does not tax

• Federally tax-exempt municipal bond interest from Colorado-issued bonds.
• Up to $20,000 of pension/annuity income for filers age 55–64; up to $24,000 for filers 65+.
• Capital gains on assets held more than five years that meet specific Colorado-source criteria (rare in practice).

Sources

• Colorado Department of Revenue — Income Tax
• Colorado Form DR-0104 (2026) instructions
• Proposition 121 (2022) — locked the statutory income tax rate at 4.4%.

Note on local taxes. The calculator projects Colorado stateincome tax only. Several Colorado municipalities, including Denver, Aurora, Glendale, Greenwood Village, and Sheridan, charge a small flat-dollar Occupational Privilege Tax (the "head tax"), typically a few dollars per month per worker. OPT is not modeled here. Colorado does not have a state SDI program. See the methodology for the full list of what is included and excluded.

Last cross-checked against these sources on 2026-04-28. Verify with the Colorado Department of Revenue if it matters.