COLORADO PAYCHECK CALCULATOR
Colorado is one of only fourteen states that taxes income at a single flat rate instead of climbing brackets, and it is the only one of them with a constitutional trigger that can shave the rate down further in a good revenue year. That mechanism is called TABOR, and it is baked into how much Colorado can even keep before it has to hand money back. For 2026, the flat rate sits at 4.4%, and it applies the same way whether a paycheck comes from a Denver tech office, a Western Slope ranch, or a Colorado Springs base.
A Colorado paycheck usually has five things carved out of it: federal income tax, the 4.4% state tax, Social Security, Medicare, and a 0.44% FAMLI paid-leave premium. That is the whole list. There is no city or county income tax anywhere in the state, which is not true of neighbors like Utah’s local option taxes or the patchwork you would find in Ohio or Pennsylvania. If you are weighing Colorado against a move, it is worth checking the numbers for a neighboring or comparably taxed state side by side, such as the Wyoming paycheck calculator, the Utah paycheck calculator, the Arizona paycheck calculator, or the New Mexico paycheck calculator.
Estimate Your Colorado Take-Home Pay
Every Deduction on a Colorado Paycheck
- Federal income tax: Calculated on the 2026 IRS brackets after subtracting the federal standard deduction, $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household.
- Colorado state income tax: A flat 4.4% applied to Colorado taxable income, which starts from your federal taxable income. There is no separate Colorado standard deduction schedule to memorize since the state generally follows the federal figure.
- Social Security: 6.2% of wages up to the 2026 wage base of $184,500, for a maximum employee contribution of $11,439 this year.
- Medicare: 1.45% on all wages with no cap, plus an extra 0.9% on wages above $200,000 for single and head of household filers or $250,000 for married filing jointly.
- Colorado FAMLI premium: 0.44% of gross wages, capped once wages hit the Social Security wage base. Employers with 10 or more workers match this with their own 0.44% share, but only the employee’s 0.44% ever touches your paycheck.
- What you will not see: No city income tax, no county income tax, no school-district income tax. Colorado’s constitution prohibits local governments from taxing income at all.
TABOR: Why Your Colorado Rate Might Drop Below 4.4%
The Taxpayer’s Bill of Rights, approved by Colorado voters in 1992, caps how much tax revenue the state can keep each year based on population growth and inflation. Anything collected above that cap has to go back to residents, either as direct refunds or through a temporary cut to the income tax rate itself. The cuts are tiered, and they only kick in once the surplus clears $300 million.
| Excess Revenue Above the TABOR Cap | Income Tax Rate Reduction |
|---|---|
| $300 million to $500 million | 0.04 percentage points |
| $500 million to $600 million | 0.07 percentage points |
| $600 million to $700 million | 0.09 percentage points |
| $700 million to $800 million | 0.11 percentage points |
| $800 million to $1 billion | 0.12 percentage points |
| $1 billion to $1.5 billion | 0.13 percentage points |
| Above $1.5 billion | 0.15 percentage points |
Source: Colorado General Assembly TABOR refund mechanism schedule, via Colorado Office of the State Auditor.
Because the trigger depends on how far state revenue runs above its cap in any given year, the rate you actually pay can land a few hundredths of a point under the standard 4.4%. It is not something to plan your budget around, but it explains why a past year’s Colorado return might show a slightly different number than the flat rate on paper.
Colorado vs. Neighboring States: $70,000 Single Filer
Here is how Colorado’s flat 4.4% stacks up against three other Mountain West approaches to income tax, using the same $70,000 gross salary and single filing status for everyone.
| State | Income Tax Structure | State Tax Owed | Estimated Annual Net Pay |
|---|---|---|---|
| Wyoming | No state income tax | $0 | $58,075 |
| Arizona | Flat 2.5% | $1,348 | $56,728 |
| Colorado | Flat 4.4% + 0.44% FAMLI | $2,680 | $55,395 |
| Utah | Flat 4.45% | $2,399 | $55,676 |
Figures use $70,000 gross, single filer, 2026 federal brackets and standard deduction, and each state’s flat rate applied to a $53,900 taxable-income base for comparability. Utah’s actual bill would run somewhat lower once its taxpayer credit is applied. Arizona and Wyoming totals exclude any FAMLI-equivalent premium since neither state runs one.
Colorado’s Tax Burden vs. National Averages
| Tax Type | Colorado | National Average | Where Colorado Stands |
|---|---|---|---|
| State income tax | Flat 4.4% | Varies, many states progressive to 5%+ | Ranks 21st nationally for individual income tax competitiveness |
| Combined sales tax | 7.89% average | 7.53% average | Slightly above average once local add-ons stack up |
| Effective property tax | 0.50% | Roughly 0.90% | Among the lowest rates in the country |
| Estate/inheritance tax | None | 12 states levy one | No exposure for Colorado residents |
Sources: Tax Foundation 2026 State Tax Rates & Rankings (Colorado), Tax Foundation 2026 Sales Tax Rates midyear update (national average), and Tax Foundation/Census-based property tax compilations.
Put together, Colorado lands in an odd middle spot. The income tax is genuinely competitive and simple to plan around. The property tax rate is one of the lowest in the nation, though rising home values mean the dollar bill has grown even as the rate stayed low. Sales tax is where Colorado gives some of that back, since Denver, Boulder, and other cities stack local rates that push the combined total above the national average. The Tax Foundation’s broader 2026 competitiveness index puts Colorado at 33rd overall, a slide from 22nd back in 2020, driven mostly by the sales and property tax subcategories rather than the income tax.
Retirees: How Colorado Treats Social Security and Pension Income
Colorado has become notably friendlier to retirees over the past few years. Anyone 65 or older can subtract the full amount of their Social Security benefits from Colorado taxable income, with no income cap attached. Residents between 55 and 64 get the same full subtraction as long as adjusted gross income stays at or below $75,000 for single filers or $95,000 for joint filers. Below age 55, Social Security benefits generally remain part of Colorado taxable income.
This matters for anyone weighing a retirement move within the Mountain West. A retiree drawing a pension alongside Social Security in Colorado will often see a smaller state tax bill than the flat 4.4% headline rate suggests, once the Social Security subtraction is applied.
Federal Tax Brackets for 2026
Federal tax is layered on top of whatever Colorado collects, and it uses the same progressive structure nationwide. Below are the 2026 brackets for single filers, with the standard deduction already noted above.
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,400 to $50,400 | $24,800 to $100,800 | $17,700 to $67,450 |
| 22% | $50,400 to $105,700 | $100,800 to $211,400 | $67,450 to $105,700 |
| 24% | $105,700 to $201,775 | $211,400 to $403,550 | $105,700 to $201,775 |
| 32% | $201,775 to $256,225 | $403,550 to $512,450 | $201,775 to $256,225 |
| 35% | $256,225 to $640,600 | $512,450 to $768,700 | $256,225 to $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Source: IRS Revenue Procedure 2025-32, tax year 2026 inflation adjustments (reflects the One Big Beautiful Bill Act).
Worked Example: $70,000 Single Filer
Start with $70,000 in gross wages. Subtract the $16,100 standard deduction to get $53,900 in taxable income. That amount crosses three brackets: the first $12,400 is taxed at 10% for $1,240, the next $38,000 (from $12,400 to $50,400) is taxed at 12% for $4,560, and the remaining $3,500 (from $50,400 to $53,900) is taxed at 22% for $770. Add those three pieces together and the federal bill comes to $6,570, an effective rate of about 9.4% on the full $70,000, even though the marginal bracket touched is 22%.
Frequently Asked Questions
What is the Colorado state income tax rate in 2026?
Colorado charges a flat 4.4% state income tax on Colorado taxable income for 2026. It applies to every filer at the same rate, whether you make $35,000 or $350,000, and there are no separate brackets by income level.
Does Colorado have local or city income taxes?
No. Colorado is one of the few states that bars cities and counties from levying their own income tax. Whether you work in Denver, Boulder, Colorado Springs, or a mountain town, the 4.4% flat state rate is the only income tax coming out of your paycheck.
What is Colorado FAMLI and how much comes out of my paycheck?
FAMLI is Colorado’s paid family and medical leave insurance program. For 2026, employees contribute 0.44% of gross wages, capped at the Social Security wage base of $184,500. Employers with 10 or more workers match that 0.44%. The rate dropped from 0.45% under SB 25-144, effective January 1, 2026.
What is TABOR and does it lower my Colorado tax bill?
TABOR, the Taxpayer’s Bill of Rights, is a constitutional rule that caps how much revenue Colorado government can keep. When actual revenue exceeds that cap by set amounts, the state income tax rate temporarily drops in steps, from 0.04 percentage points to as much as 0.15, and any leftover surplus is refunded directly to taxpayers. It only reduces your rate in years the state collects well above its cap, so it is not something you should count on every year.
Does Colorado tax Social Security benefits?
Not for most retirees. Colorado residents age 65 and older can subtract all of their Social Security benefits from state taxable income with no income limit. Residents age 55 to 64 can also subtract their full benefit if adjusted gross income is at or below $75,000 for single filers or $95,000 for joint filers.
How much of my paycheck goes to taxes in Colorado?
For a single filer earning $70,000 in 2026, roughly $6,570 goes to federal income tax, about $2,372 to Colorado’s flat state tax, $4,340 to Social Security, $1,015 to Medicare, and $308 to FAMLI, leaving close to $55,395 in take-home pay before any pre-tax deductions like a 401(k) or health insurance.
Colorado’s tax code rewards simplicity over optimization. There are no brackets to game, no city filing to track, and the FAMLI premium is small enough that most workers barely notice it against a Denver-area salary. The trade-off shows up at the register and the property tax bill instead of the paycheck, which is worth keeping in mind if you are comparing total cost of living rather than income tax alone.
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