Colorado Tax Guide
4.4%top marginal rate
Colorado levies a flat income tax of 4.4% on all taxable income. The state sales tax of 2.9% is low, though local additions can push combined rates higher. Property taxes are among the lowest in the country.
Colorado Tax at a Glance
Income Tax
4.4%
Flat rate
Sales Tax
2.9%
State-level rate
Property Tax
0.51%
54% below the national average
Estate Tax
No
No state estate tax
How Colorado Compares to the National Average
Notable Tax Facts
- TABOR (Taxpayer's Bill of Rights) requires voter approval for tax increases
- Flat income tax rate of 4.4% — recently reduced from 4.55%
- State sales tax of 2.9% is one of the lowest base rates nationally
- Property taxes are very low, around 0.51% effective rate
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Colorado Tax FAQ
What is Colorado's income tax rate?
Colorado has a flat income tax rate of 4.4%. All taxable income is taxed at the same rate regardless of income level.
What is TABOR in Colorado?
The Taxpayer's Bill of Rights (TABOR) is a constitutional amendment that requires voter approval for any new taxes or tax rate increases. It also limits government spending growth.
Does Colorado have low property taxes?
Yes. Colorado's effective property tax rate of about 0.51% is well below the national average. TABOR and assessment rate limits help keep property taxes low.
Does Colorado tax retirement income?
Colorado offers a retirement income subtraction for taxpayers age 55-64 and a larger subtraction for those 65 and older, effectively reducing or eliminating tax on retirement income for seniors.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.