TABOR and the falling rate
Colorado's Taxpayer's Bill of Rights forces refunds when revenue outpaces inflation + population growth. That's driven the flat rate from 4.63% (2019) to 4.25% (2025). Future cuts depend on state revenue — not guaranteed.
Denver vs. remote-mountain math
Denver salaries run ~8–12% above national medians in tech. CO's flat 4.25% applies statewide, so living in Boulder, Fort Collins, or mountain towns changes housing cost, not state tax.
CO FAMLI leave tax
Colorado's paid family-leave program (FAMLI) adds a 0.9% premium on wages up to the SS cap, split with employers — employees typically pay 0.45%. Small but visible on paystubs since 2024.
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Read the guideFAQ
What is Colorado's income tax rate in 2025–2026?
A flat 4.25% on taxable income, reduced from 4.4% under TABOR refund mechanisms. It applies equally at all income levels.
Does Denver have an income tax?
No city income tax, but workers in Denver pay a small occupational privilege tax (~$5.75/month) regardless of income.
Does Colorado tax retirement income?
Social Security is fully deductible for most retirees; other retirement income has age-based deductions ($20K–$24K).
Living in the five boroughs changes the answer — the NYC paycheck calculator adds the city resident tax on top of state withholding.
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