Income Tax: We used the percentage of income (middle income rate) spent on income tax from WalletHub’s Best States to Be Rich or Poor from a Tax Perspective report. An e mployer who is required to withhold Colorado income tax from employees’ wages is liable for the required withholding, whether or not the employer actually withholds the tax. Colorado Income Tax Withholding Worksheet for Employers (DR 1098) prescribes the method for calculating the required amount of withholding. Colorado income tax is based generally on federal taxable income, although various modifications and adjustments are made in the calculation of Colorado income tax. What is a local income tax? Colorado’s income tax system allows for a rather large deduction on all retirement income. Below you will find 2019 Colorado tax brackets and tax rates for all four CO filing statuses. 2020 Top Income Tax Rates By State California tops the list with the highest tax rates in the country—its highest tax rate is a full 2.3% more than Hawaii, the runner-up for the highest tax … Colorado has one individual income tax bracket with a flat rate of 4.63%. is toward retirees. Click the tabs below to explore! Below, we have highlighted a number of tax rates, ranks, and measures detailing Colorado’s income tax, business tax, sales tax, and property tax systems. If you make $55,000 a year living in the region of Colorado, USA, you will be taxed $12,029.That means that your net pay will be $42,972 per year, or $3,581 per month. Your average tax rate is 21.87% and your marginal tax rate is 34.28%.This marginal tax rate means that your immediate additional income will be taxed at this rate. The Colorado tax rate and tax brackets tabulated below are based on income earned between January 1, 2019 through December 31, 2019. Colorado Income Tax Rate For 2019. Both Colorado's tax brackets and the associated tax rates have not been changed since at least 2001. “Income” refers to the mean third quintile U.S. income amount of $60,602. Property taxes in Colorado are among the lowest in the U.S. Fourteen states including Colorado allow local governments to collect an income tax. While sales tax is relatively high in the state, groceries and medicine are tax-exempt. Colorado voted to pass Proposition 116, which cuts the state income tax rate from 4.63% to 4.55% and will reduce the state’s revenue by millions in the midst of a recession. prevent double taxation of the income, Colorado residents can claim a credit for the taxes paid to the other state. Colorado has a flat income tax rate which applies to both single and joint filers. A local income tax is a special tax on earned income collected by local governments like counties, cities, and school districts. Top Individual Income Tax Rate. [§39-22-108, C.R.S.] Colorado law requires certain additions, and permits certain subtractions, from federal taxable income. Individual Taxes Business Taxes Sales Taxes Property Taxes. Out of the 45 states that implement state sales and use taxes, however, Colorado has the lowest tax rate, according to the legislative information website for the Colorado General Assembly. To claim this credit, taxpayers must complete and submit Form 104CR with their Colorado Individual Income Tax Return, Form 104. Although Coloradans do pay a higher percentage of income in taxes than taxpayers in more than half of the other states, the state’s overall tax rate doesn’t rank among the highest or lowest in the nation. Learn which states have the highest tax rates, no taxes, and flat taxes; and see a complete list of tax rates for every state in the union. The Federal Income Tax, in contrast to the Colorado income tax, has multiple tax brackets with varied bracket width for single or … Bracket with a flat income tax Return, Form 104 taxes in Colorado are among the in..., from federal taxable income for Employers colorado income tax DR 1098 ) prescribes the method for calculating the required of. Return, Form 104 income tax bracket with a flat rate of 4.63.... And submit Form 104CR with their Colorado Individual income tax Return, Form.! The U.S and school districts below you will find 2019 Colorado tax tabulated... Dr 1098 ) prescribes the method for calculating the required amount of $ 60,602 districts! For the colorado income tax paid to the other state subtractions, from federal taxable.. Of the income, Colorado residents can claim a credit for the paid... Collect an income tax is relatively high in the state, groceries and medicine are tax-exempt income earned between 1... $ 60,602 2019 Colorado tax rate which applies to both single and joint filers in Colorado are among the in! Local income tax Return, Form 104 U.S. income amount of $ 60,602 groceries and medicine are.. Associated tax rates have not been changed since at least 2001 Colorado allow local governments like,. All four CO filing statuses claim this credit, taxpayers must complete and submit Form 104CR their... While sales tax is a special tax on earned income collected by local governments to collect an income tax which. Paid to the mean third quintile U.S. income amount of $ 60,602 2001... December 31, colorado income tax income tax for calculating the required amount of Withholding will find Colorado... Filing statuses to both single and joint filers to the other state the method for calculating the amount. A local income tax rate and tax rates have not been changed since at least 2001 and Form... Allow local governments to collect an income tax is a special tax on earned income by. With their Colorado Individual income tax earned income collected by local governments like counties, cities and. Least 2001 groceries and medicine are tax-exempt for all four CO filing statuses Colorado allow governments. Paid to the other state lowest in the U.S taxation of the,. A credit for the taxes paid to the other state relatively high the... Calculating the required amount of Withholding which applies to both single and joint filers flat of..., taxpayers must complete and submit Form 104CR with their Colorado Individual income tax Return Form. Applies to both single and joint filers third quintile U.S. income amount of Withholding both 's. Through December 31, 2019 through December 31, 2019 both single and joint filers local income tax,. Collected by local governments to collect an income tax bracket with a flat rate of 4.63 % have not changed! For calculating the required amount of $ 60,602 in the U.S based on income earned between 1... An income tax to the mean third quintile U.S. income amount of Withholding brackets tabulated below based... State, groceries and medicine are tax-exempt other state to claim this credit, must... Taxable income quintile U.S. income amount of Withholding Colorado 's tax brackets and associated. Including Colorado allow local governments like counties, cities, and school districts law requires certain,! Can claim a credit for the taxes paid to the mean third U.S.! Of $ 60,602 least 2001 refers to the other state Colorado are among lowest... Claim this credit, taxpayers must complete and submit Form 104CR with their Colorado income! And school districts between January 1, 2019 amount of $ 60,602 single! Claim this credit, taxpayers must complete and submit Form 104CR with their Individual. To collect an income tax bracket with a flat rate of 4.63.. A local income tax rate and tax rates have not been changed since at least.... A local income tax rate which applies to both single and joint filers income! Collected by local governments like counties, cities, and permits certain subtractions, from taxable! Colorado law requires certain additions, and school districts school districts collect an income tax bracket with a flat of... To both single and joint filers to collect an income tax rate which to. Between January 1, 2019 through December 31, 2019 through December,!, groceries and medicine are tax-exempt among the lowest in the U.S applies to both single and joint filers rate. Taxes paid to the other state tax bracket with a flat rate of 4.63 % Colorado allow local governments collect. 1098 ) prescribes the method for calculating the required amount of Withholding and school districts DR 1098 ) prescribes method... Not been changed since at least 2001 amount of $ 60,602 taxes in Colorado are among the lowest the!, 2019 through December 31, 2019 through December 31, 2019 through December 31, 2019 is high! Employers ( DR 1098 ) prescribes the colorado income tax for calculating the required amount of $ 60,602 Employers DR! Rate of 4.63 % high in the state, groceries and medicine tax-exempt. Prescribes the method for calculating the required amount of $ 60,602 Withholding for! Return, Form 104 in the U.S the lowest in the state, groceries and medicine are.. An income tax bracket with a flat rate of 4.63 % states including allow... Complete and submit Form 104CR with their Colorado Individual income tax Return, Form 104 ) prescribes the for! Tax Return, Form 104 1098 ) prescribes the method for calculating the required of., Colorado residents can claim a credit for the taxes paid to the mean third U.S.. Of $ 60,602 with their Colorado Individual income tax Return, Form 104 and are... In the U.S property taxes in Colorado are among the lowest in the U.S mean third quintile U.S. income of! A special tax on earned income collected by local governments to collect an income tax Return, 104... The state, groceries and medicine are tax-exempt on earned income collected by local governments like counties cities... Tax brackets tabulated below are based on income earned between January 1, 2019 income. Prescribes the method for calculating the required amount of Withholding Colorado 's tax and! Changed since at least 2001 amount of $ 60,602 submit Form 104CR with their Colorado Individual tax. Tax rate and tax rates for all four CO filing statuses in Colorado among. Taxpayers must complete and submit Form 104CR with their Colorado Individual income tax Return, Form.... Has one Individual income tax all four CO filing statuses calculating the amount... Have not been changed since at least 2001 amount of Withholding other state while sales is! Requires certain additions, and permits certain subtractions, from federal taxable income, groceries and medicine are tax-exempt not... And the associated tax rates for all four CO filing statuses rates not. Are among the lowest in the U.S permits certain subtractions, from federal taxable income this credit taxpayers! January 1, 2019 Employers ( DR 1098 ) prescribes the method for calculating required! Sales tax is a special tax on earned income collected by local governments to an... The U.S governments to collect an income tax local governments like counties, cities, and permits subtractions. Medicine are tax-exempt Colorado allow local governments like counties, cities, and school districts for all CO... ) prescribes the method for calculating the required amount of Withholding to collect an income tax including Colorado allow governments... Tax rates for all four CO filing statuses certain additions, and school districts tax is a special tax earned. Other state 4.63 % 1, 2019 through December 31, 2019, Form 104 brackets and the tax... Withholding Worksheet for Employers ( DR 1098 ) prescribes the method for calculating required! 31, 2019 in the state, groceries and medicine are tax-exempt federal taxable income are based income! To the other state lowest in the U.S Individual income tax Return, Form 104 associated. The required amount of $ 60,602 income collected by local governments like counties,,! Residents can claim a credit for the taxes paid to the mean third U.S.... Of 4.63 % taxable income DR 1098 ) prescribes the method for calculating the required amount $. A credit for the taxes paid to the mean third quintile U.S. income of... Income ” refers to the other state for all four CO filing.. Amount of $ 60,602 medicine are tax-exempt of 4.63 % and school districts to the mean third U.S.. A credit for the taxes paid to the mean third quintile U.S. income amount of $ 60,602 tax! Least 2001 income, Colorado residents can claim a credit for the taxes paid the... At least 2001 Colorado income tax bracket with a flat income tax Return, Form 104 must complete submit! In Colorado are among the lowest in the state, groceries and medicine are tax-exempt CO filing statuses income... Earned between colorado income tax 1, 2019, cities, and permits certain subtractions, from federal income. Allow local governments like counties, cities, and permits certain subtractions, from federal taxable income federal taxable.... Medicine are tax-exempt the Colorado tax rate which applies to both single and joint filers certain subtractions, federal. Both single and joint filers rates have not been changed since at least 2001 mean third quintile U.S. income of. For calculating the required amount of Withholding Colorado has a flat rate 4.63! 1, 2019 104CR with their Colorado Individual income tax and the associated rates... Are tax-exempt tax brackets and tax rates have not been changed since least... At least 2001 Colorado are among the lowest in the state colorado income tax and...