However, any state or local bond interest, other than interest from the State of Colorado or any political subdivision thereof, is subject to Colorado income tax and therefore must be added to federal taxable income.

September 11, 2025 - Colorado has a flat individual income tax of 4.25 percent for the 2024 tax year, meaning that every resident pays the same rate, regardless of income level. Five cities, including Denver, also collect local income taxes.

How does Colorado’s tax code compare? Colorado has a flat 4.40 percent individual income tax rate. There are also jurisdictions that collect local wage taxes. Colorado has a 4.40 percent corporate income tax rate.

Visit our Information for Local Government or Entities Implementing a New Tax or Changed Tax Rate page for more information. Tax rate changes administered by the State of Colorado, Department of Revenue become effective either January 1 or July 1.

Colorado has low property taxes and a flat income tax rate of 4.40%. Colorado’s state sales tax is the lowest in the country out of states with a sales tax, but county and city taxes mean Coloradoans can end up paying more.

Income Tax – Income tax is paid on most income individuals receive. This tax · is assessed at the state level (local governments in Colorado are banned from

The taxpayer’s $10,000 total state and local tax deduction, minus the $500 local income tax deduction, the $7,000 local real estate tax deduction, and the $1,500 local personal property tax deduction is $1,000. Consequently, the taxpayer is only required to add back $1,000, rather than the ...

The Colorado Department of Revenue, Division of Taxation, is hosting a virtual workgroup meeting to discuss the promulgation of new and amended tax rules regarding mandatory electronic filing and payment of certain taxes and fees.

September 2, 2024 - About a third of all states allow their counties, municipalities, and other local jurisdictions to impose an income tax. Tax rates are often lower than at the federal or state levels. Not all states have a local tax in every jurisdiction. Only five cities in Colorado impose the tax, while Iowa has hundreds of school districts that levy income taxes.

August 18, 2025 - Social Security: Partially taxable for some retirees (fully deductible for taxpayers 65 and older) ... Colorado's state sales tax is 2.9%. Localities can add as much as 8.3%, and the average combined Colorado sales tax rate is 7.86%, according ...

Tax Due with Return Filing · Estimated Payments · Request Payment Plan · Collections · Who Must File? Due Dates & Extensions · Wage Withholding, W-2 & 1099 Statements · New Colorado Residents · Part-Year & Non-Residents · Income Tax Accounts · DR 0004 Employee Resources ·

Colorado is home to Rocky Mountain National Park, upscale ski resorts and a flat income tax rate of 4.40%. Aside from state and federal taxes, Centennial State residents who live in Aurora, Denver, Glendale, Greenwood Village or Sheridan must ...

2 weeks ago - 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[0]

A local income tax is a special tax on earned income collected by local governments like counties, cities, and school districts. Fourteen states including Colorado allow local governments to collect an income tax.

October 31, 2025 - Colorado is also among the minority ... statewide rate is the lowest (2.9 percent). Local jurisdictions add an average of 4.96 percent in local ......

Five cities in Metro Denver assess an occupational tax on all people working in that city who earn a determined amount in monthly salary.

April 24, 2025 - That means you pay the same tax rate regardless of how much you make. Some local governments also levy an income tax. ... Colorado’s flat income tax rate is 4.25 percent for the 2024 tax year, for income reported on tax returns filed in 2025.

November 15, 2024 - Colorado's tax system includes a combination of sales tax, corporate income tax, and local jurisdictional taxes, which can make compliance challenging for businesses operating in the state. If you're visiting this page, you may need help understanding Colorado's tax requirements and how they ...

No, the Colorado Department of Revenue does not require taxpayers to attach a copy of the federal return to the Colorado return. Your Colorado income tax filing status will always be the same as your federal filing status.

State Income Tax) ... The below information was last updated January 8, 2025. It is not intended as legal or tax advice. Colorado has a flat income tax rate of 4.40%, meaning all residents pay the same amount regardless of their income levels.