If you live or work in Denver, here's what you'll pay in Colorado state income tax in 2026. With a flat 4.4% rate, your Colorado state tax is straightforward to calculate. Use the calculator below to estimate your take-home pay.
Colorado has a flat state income tax rate of 4.4%. This means everyone pays the same percentage regardless of income level. Combined with federal graduated brackets, the overall effect is progressive at higher incomes.
Top marginal rate: 4.4%
Tax structure: Flat rate
State capital: Denver
2026 brackets: Flat 4.4% on all income
Denver residents may face local taxes or special assessments in addition to state and federal taxes.
Check with your employer about local tax withholding. Some Denver residents also pay transit or other local assessments.
Generally, you pay state income tax in the state where you live, not where you work. If you commute from another state, you typically pay that state's tax. Some states have reciprocity agreements that simplify this. Colorado has reciprocity agreements with some neighboring states. Check with your employer for specifics.
All Colorado taxable income is taxed at 4.4%, with no graduated brackets. Standard deduction and personal exemptions apply.
For 2026 returns, the Colorado state tax deadline is typically April 15, 2027 (same as federal). Extensions follow federal rules. If you file for an extension federally, you typically get an automatic state extension too.
You can deduct state and local income taxes (SALT) on your federal Schedule A, capped at $10,000 total for state + local + property taxes. This is most useful if you itemize. Most people take the standard deduction and don't get this benefit.
No. If you moved out of Colorado before earning any income, you don't need to file a Colorado return. You'll file in your new state of residence.
Traditional 401(k) and IRA contributions reduce your federal taxable income. Most states (including Colorado) also reduce your state taxable income. The 2026 limit is $24,500 for 401(k) and $7,500 for IRA (with catch-up if 50+).
Health Savings Accounts offer a triple tax advantage: deductible going in, tax-free growth, tax-free for medical. Colorado follows federal HSA rules (contributions are deductible).
If you're in a high tax bracket, deferring bonuses or consulting income to the next year can lower your effective rate. Self-employed? S-Corp election can save self-employment tax.
If you have a mortgage and high property taxes, itemizing may beat the standard deduction. The SALT cap is $10K but most people in Denver benefit when combined with mortgage interest.
⚠️ Estimate. This calculator provides an approximation based on 2026 federal and Colorado state tax rates. Local taxes, credits, and deductions vary. Consult a tax professional for personalized advice.