Colorado Income Taxes
Colorado has a flat rate income tax of 4.55%. Residents are taxed on all income, nonresidents on in-state income. Corporations pay 4.63%, while individuals pay 4.4% to 5.55%, depending on income.
Colorado Taxation Details
- Payroll taxes apply to residents on all income sources.
- Denver city income tax also applies.
- Property and sales taxes complicate tax calculations.
- Deductions can help married filers and dependents reduce taxes.
Colorado State Tax Information
- Colorado generally uses federal taxable income to calculate state taxable income.
- Revenue tax returns are due April 18, 2023, with a possible extension.
- C corporations must pay estimated income tax if liability exceeds $5,000.
Colorado Tax Estimates
- Use income tax calculators for estimations.
- Housing costs in Colorado are higher compared to the rest of the U.S.
Colorado Payroll Taxes
- Colorado has a flat income tax rate of 4.4%.
- Filing payroll taxes accurately is crucial to avoid penalties and fines.
Colorado Local Taxes
- Denver imposes a 4.31% sales tax.
- Property taxes in Colorado are relatively low.
Additional Information
- Grocery and medicine sales are tax-exempt in Colorado.
- Colorado’s tax rates are considered relatively low compared to other states.
Comparison of Tax Rates
- Colorado ranks in the middle among states with a flat income tax rate.
- The effective federal income tax rate in 2020-2021 has decreased.
Seeking Financial Advice
- Find a financial advisor serving your area using free online matching tools.