Colorado Income Tax Calculator: Federal & State Tax Estimator
Colorado applies its individual income tax to residents’ income and to Colorado-source income earned by nonresidents.
It imposes a flat individual income tax with no graduated brackets, currently 4.40% of federal taxable income.
The state calculates taxable income from federal taxable income after Colorado-specific additions and subtractions.
Colorado Income Tax Calculator: Estimate Your State and Federal Taxes
Colorado Tax Rates and Brackets
Colorado has one tax rate, rather than graduated brackets.
| Tax Year | Colorado Individual Income Tax Rate |
|---|---|
| 2018 | 4.63% |
| 2019 | 4.50% |
| 2020 | 4.55% |
| 2021 | 4.50% |
| 2022 | 4.40% |
| 2023 | 4.40% |
| 2024 | 4.25% |
| 2025 | 4.40% |
| 2026 | 4.40% |
The Colorado individual income tax rate has changed over time, including temporary rate reductions, before returning to 4.40% for tax year 2025 and remaining at 4.40% under current law.
How Colorado Income Tax Is Calculated
You first calculate your federal taxable income, apply state additions and subtractions for your final Colorado taxable income, then apply the flat tax rate and credits:
| Step | What You Do | Example |
|---|---|---|
| Federal taxable income | Begin with federal taxable income from the federal return. | Federal taxable income = $60,000 |
| Colorado additions | Add income or deductions that Colorado requires you to add back. | Colorado additions = +$2,000 |
| Colorado subtractions | Subtract amounts Colorado allows you to exclude. | Colorado subtractions = −$5,000 |
| Colorado taxable income | Combine federal taxable income with Colorado additions and subtractions. | $60,000 + $2,000 − $5,000 = $57,000 |
| Apply Colorado tax rate | Multiply Colorado taxable income by the applicable tax rate for the tax year. | $57,000 × 4.40% = $2,508 |
| Gross Colorado income tax | The amount after applying the tax rate is the gross Colorado income tax before credits. | $2,508 |
| Apply tax credits | Subtract allowable Colorado tax credits. | $2,508 − $300 = $2,208 |
| Withholding and estimated payments | Subtract Colorado income tax already paid through withholding or estimated payments. | $2,208 − $2,500 = −$292 |
| Tax due or refund | A remaining positive balance is generally tax due; excess payments generally result in a refund. | $292 refund |
Standard vs. Itemized Deductions:
Colorado allows taxpayers to choose either the Colorado standard deduction or to itemize deductions on their state return, regardless of the federal choice.
The standard deduction amounts mirror the federal standard deduction.
If you choose to itemize, taxpayers cannot deduct state tax payments for Colorado purposes; in fact, Colorado law requires adding back any state taxes deducted federally.
Colorado Taxable Income and Deductions
| Item | Colorado Deduction? |
|---|---|
| Federal taxable income | |
| Charitable contributions over $500 (if taking standard deduction) | |
| CollegeInvest contributions | |
| Colorado ABLE contributions | |
| Qualifying Social Security benefits | |
| Qualifying pension/annuity income | |
| U.S. government obligation interest | |
| State income taxes deducted federally | |
| Non-Colorado municipal bond interest | |
| Qualified overtime deduction | |
| Certain federally deducted business expenses |
- ✓ indicates that the item may qualify as a Colorado deduction or subtraction
- ✗ means it is generally not deductible or must be added back when calculating Colorado taxable income.
Who Pays Colorado Income Tax?
| Your Situation | Are You a Colorado Resident? | What Gets Taxed? | Main Filing Form |
|---|---|---|---|
| Live in Colorado all year | Yes — full-year resident | All income (with Colorado adjustments) | DR 0104 |
| Moved into or out of Colorado | Part-year resident | Income subject to Colorado rules for the year | DR 0104 + DR 0104PN |
| Live outside Colorado but earn Colorado income | No — nonresident | Colorado-source income only | DR 0104 + DR 0104PN |
| Earn Colorado-source income | May be nonresident | Examples: Colorado wages, Colorado rental income | Usually DR 0104 + DR 0104PN |
| Estimated tax | Separate issue | Applies based on estimated Colorado tax liability | Generally required when liability exceeds $1,000 |
Colorado generally taxes full-year residents on all income, while part-year residents and nonresidents calculate Colorado tax based on income attributable to Colorado.
Does Colorado Tax Social Security, Pensions and Retirement Income?
| Retirement Income | Age / Situation | Colorado Tax Treatment |
|---|---|---|
| Social Security | 65+ | Generally fully deductible if included in federal taxable income. |
| Social Security | 55–64 | Fully deductible up to the applicable AGI limit; otherwise the $20,000 retirement subtraction limit applies. |
| Social Security | Under 55 | Generally not deductible, except certain survivor benefits. |
| Pension / IRA / 401(k) | 65+ | Deduction of up to $24,000 per person, reduced by qualifying Social Security subtraction. |
| Pension / IRA / 401(k) | 55–64 | Deduction of up to $20,000 per person, reduced by qualifying Social Security subtraction. |
| Public Pensions (including PERA) | Eligible recipients | Generally follow the same pension/annuity subtraction rules; additional PERA/DPSRS rules may apply. |
| Railroad Retirement & Survivor Benefits | Eligible recipients | May qualify for Colorado retirement-income deductions, depending on the type of benefit. |
Most retirement income is favorably treated.
Social Security is effectively exempt for seniors, and substantial portions of other pension/retirement distributions are deductible.
Colorado Income Tax FAQ
Colorado’s flat individual income tax rate is 4.40% for 2026.
Start with federal taxable income, apply Colorado additions and subtractions, then multiply the taxable amount by 4.40%.
Colorado generally uses the same standard deduction amounts as the federal tax system.
Yes, Colorado allows you to itemize on your state return even if you took the federal standard deduction.
Colorado provides deductions for qualifying retirement income, including Social Security, pensions, and retirement-plan distributions, subject to age and income limits.
Some or all may be exempt through Colorado’s retirement-income subtraction, depending on your age and the amount received.
Generally no for taxpayers age 65 and older, while younger retirees may qualify for an exemption subject to income limits.
You generally file as a part-year resident and report income according to when and where it was earned.
Yes, but generally only income from Colorado sources is subject to Colorado income tax.
Colorado offers several credits, including the Colorado EITC, child-related credits, and certain senior and pension credits.
Colorado individual income tax returns are generally due April 15 of the following year.
You can generally e-file through approved tax software or file a paper return and pay through Colorado Revenue Online.
You can generally receive the overpayment as a refund after filing your Colorado tax return.
Yes, estimated payments may be required if you expect to owe more than the applicable Colorado threshold after withholding.
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