How Colorado Taxes Your Paycheck
Colorado runs a flat 4.4% income tax — among the lowest flat rates in the country, sitting between Pennsylvania (3.07%) and Illinois (4.95%). A single filer earning $80,000 in 2026 pays about $2,860 in state tax — roughly 3.6% of gross. The rate has been on a downward trajectory: 4.63% historically, dropped to 4.55% in 2020, then to 4.40% as TABOR refunds and ballot measures pushed it lower.
TABOR is the distinctive feature. Colorado's Taxpayer's Bill of Rights, passed in 1992, caps state revenue growth and requires automatic refunds when collections exceed the cap. In recent surplus years that has produced sizable per-filer refunds (often $700–$1,800 per filer) as part of the state tax return. The mechanism makes Colorado's effective tax burden lower than the headline rate suggests in surplus years.
Federal-conforming standard deduction. Colorado starts from federal taxable income, so the federal $16,100 single standard deduction (2026) flows through to the state. Pre-tax 401(k), HSA, and Section 125 health premiums all reduce Colorado-taxable wages — full conformity.
FAMLI (paid leave) is mandatory. Colorado's Family and Medical Leave Insurance program took effect in 2024. The 2026 employee contribution is 0.45% of wages on the SSA wage base — about $360/yr at $80,000. Employers add another 0.45%. Smaller employers can opt out of the employer match.
Local income tax is minimal. Most Colorado cities have no income tax. Denver, Aurora, and a handful of others charge a small flat-fee Occupational Privilege Tax ($5.75/month for Denver employees) — not a percentage. The state tax line on your paystub is essentially the entire state-and-local wage tax bill.
Property tax is low. Colorado's effective property tax rate (about 0.49%) is among the lowest in the country, in part due to TABOR-related caps on residential assessments. On a median Colorado home (~$540,000), annual property tax is roughly $2,650 — meaningfully lower than the comparable national rate.
Colorado's economy spans tech and aerospace along the Front Range (Boulder, Denver Tech Center, Colorado Springs), energy on the Western Slope, and tourism in the mountain resort towns. Population growth has slowed somewhat since the 2010s peak but remains a defining feature. The paycheck math is simple, the rate is competitive, and the TABOR refund is a real upside in surplus years.
Top Cities in Colorado
The largest population centers in Colorado:
- Denver — 716,000 residents
- Colorado Springs — 488,000 residents
- Aurora — 391,000 residents
- Fort Collins — 170,000 residents
How Colorado Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Colorado |
|---|---|---|
| Colorado (here) | $58,953 | — |
| Wyoming | $61,593 | +$2,640 |
| Nebraska | $58,884 | -$69 |
| Kansas | $58,207 | -$745 |
| Oklahoma | $58,763 | -$190 |
| New Mexico | $59,182 | +$229 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Colorado state income tax rate?
Colorado has a flat income tax rate of 4.4% for 2026. Whether you earn $40,000 or $200,000, your state tax rate is the same — applied to your taxable income after the standard deduction.
How much is taken out of my paycheck in Colorado?
For a single filer earning $75,000 in Colorado (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA, and $2,640 in Colorado state tax — leaving about $58,953 take-home (21.4% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Is the Colorado median household income enough to live comfortably?
The 2023 ACS reported a Colorado median household income of about $97,100. Whether that's "comfortable" depends heavily on city — Denver cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Colorado paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Colorado state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.