How Colorado taxes wages
Flat 4.4%, calculated from federal taxable income. TABOR refunds can temporarily lower the rate.
At $65,000 of wages, that is the 18th-lowest (tied) estimated bill of the 42 jurisdictions (including DC) that tax wages.
Its 4.4% rate is the 11th-lowest of the 16 flat-tax states.
Example: $65,000 salary, single filer
| Wages | $65,000 |
|---|---|
| Income not taxed (approx. deduction, exemptions) | −$16,100 |
| Income taxed | $48,900 |
| Flat rate | × 4.4% |
| Estimated Colorado income tax | $2,152 |
That works out to about $179 a month, or an effective rate of 3.31% of wages.
Calculators for Colorado
- Paycheck calculator
Take-home pay after federal income tax, Social Security, Medicare, and Colorado income tax, with Colorado selected.
- Tips and overtime calculator
Your federal deduction for qualified tips and overtime, with Colorado selected and its state rules applied to the Colorado estimate.
- Senior deduction calculator
A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.
- Car loan interest calculator
A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.
Does Colorado tax tips and overtime?
Colorado follows the federal deduction for tips, but not for overtime. Colorado starts from federal taxable income, so the tips deduction carries over. The overtime deduction is added back from 2026 (HB25-1296). SB26-056, which would have limited that add-back to 2026, didn’t pass.
The example on this page taxes full wages. The tips and overtime calculator subtracts the deduction for your tips before it estimates your Colorado tax.
Source: Colorado Department of Revenue: Individual Income Tax Guide, 2026; Colorado General Assembly: SB26-056, 2026. Checked . See how every state treats tips and overtime
To see your federal deduction and Colorado tax together, open the tips and overtime calculator with Colorado selected.
Local income taxes in Colorado
Denver and a few other cities charge a small monthly occupational privilege tax.
These local taxes are not included in the estimate above.
Colorado vs. neighboring states
Workers in Wyoming and New Mexico would owe less on the same salary. Nebraska, Oklahoma, Kansas, and Utah would charge more.
| State | Est. tax on $65,000 | vs. Colorado |
|---|---|---|
| Wyoming | $0 | −$2,152 |
| New Mexico | $1,907 | −$245 |
| Nebraska | $2,252 | +$100 |
| Oklahoma | $2,364 | +$212 |
| Kansas | $2,821 | +$669 |
| Utah | $2,893 | +$741 |
Official source
For forms, exact brackets, and filing deadlines, go to the official Colorado tax agency website.
Related states
- Utah4.45% flat tax
- Kansas5.2%–5.58% progressive
- Nebraska2.46%–4.55% progressive
- New Mexico1.5%–5.9% progressive