Free Colorado Tax Calculator

Colorado charges a flat 4.4% income tax rate for 2026. The rate has been dropping — it was 4.55% in 2023 and 4.4% in 2024, and it stays at 4.4% for 2026. Colorado's approach is unique: instead of calculating state taxable income separately, it uses your federal taxable income as the starting point and applies the 4.4% rate on top. That means your federal standard deduction ($16,100 single, $32,200 married) automatically reduces your Colorado taxable income too.

Since Colorado uses federal taxable income, pre-tax deductions like 401(k) contributions reduce your state tax bill as well. On a $75,000 salary with the federal standard deduction, your Colorado taxable income is $58,900, and the state tax comes to $2,591.60. The federal deduction pass-through makes Colorado's effective tax burden lower than the 4.4% headline rate would suggest.

Colorado doesn't tax Social Security benefits, and offers a modest retirement income deduction for seniors 65 and older ($24,000 per person). Property taxes are very low, averaging about 0.55% — among the lowest in the country. Sales tax averages 7.72% combined with local add-ons. At 4.4%, Colorado is competitive with Arizona's 2.5% and North Carolina's 4.5% for flat-tax states. Run the relocation calculator for your salary.