Colorado Tax Overview
Colorado imposes a flat income tax rate of 4.40%, which was reduced from 4.55% through voter-approved Proposition 121 in 2022. The state uses federal taxable income as its starting point, simplifying the filing process. Colorado also has a TABOR amendment that limits government revenue growth and often results in taxpayer refunds.
Colorado Tax Quick Facts (2026)
| Income Tax | flat (top rate: 4.4%) |
| Sales Tax (State) | 2.90% |
| Property Tax (Avg Effective) | 0.49% |
| Median Household Income | $87,598 |
| Capital | Denver |
| Population | 5.9 million |
Frequently Asked Questions About Colorado Taxes
Does Colorado have a state income tax?+
Yes, Colorado has a flat income tax system with a top marginal rate of 4.4%.
What is the property tax rate in Colorado?+
The average effective property tax rate in Colorado is approximately 0.49% of assessed home value. On a $300,000 home, that is about $1,470 per year.
What is the sales tax rate in Colorado?+
The state sales tax rate in Colorado is 2.90%. Local jurisdictions may add additional sales tax.
What is the median household income in Colorado?+
The median household income in Colorado is approximately $87,598 per year.
How does Colorado's tax burden compare to other states?+
Colorado's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.