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Colorado Paycheck Calculator

Estimate your take-home pay in Colorado. The state applies a single flat income tax rate of 4.4% to taxable wages, so every paycheck gives up the same share to state tax on top of federal withholding, Social Security, and Medicare.

Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the Colorado Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.

Colorado Tax Snapshot

State Income Tax
4.4% top rate
Sales Tax (state + local avg)
7.89%
Avg Property Tax Rate
0.51%
Median Home Value
$539,100
State Minimum Wage
$15.16/hr

Did You Know?

Colorado uses a flat income tax and issues TABOR refunds when revenue exceeds limits.

Colorado vs. Other Flat-Tax States

Colorado is one of 15 states that apply a single flat rate to taxable wages instead of graduated brackets. Its 4.4% rate is the 11th-lowest in that group, which runs from Arizona at 2.5% to Idaho at 5.3%.

Measured against all 42 states and jurisdictions that tax wages, Colorado's 4.4% rate ranks 30th-highest and sits below the national median top rate of 5.25%.

For comparison, nearby states line up like this: Kansas (top rate 5.58%); Nebraska (top rate 4.55%); New Mexico (top rate 5.9%); Oklahoma (top rate 4.5%); Utah (top rate 4.5%).

How Colorado's Flat Tax Affects Your Take-Home Pay

When you earn a paycheck in Colorado, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on flat rate of 4.4%. The state minimum wage is $15.16 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.51% property tax rate on homes valued around $539,100.

Colorado also levies a combined state and average local sales tax of 7.89%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.

Where You Live vs. Where You Work in Colorado

Colorado has no income tax reciprocity agreements, so if you live here and work across a state line, the work state generally withholds its own tax first. Colorado then gives you a credit for taxes paid to the other state, which usually leaves you paying the higher of the two rates overall rather than both in full.

A few Colorado cities, including Denver and Aurora, charge a flat monthly occupational privilege tax on both the employee and the employer. Local withholding is separate from the state line on your pay stub, so check it explicitly if you move house or change work location without changing employer.

Frequently Asked Questions

Does Colorado have a state income tax? +
Yes. Colorado has a state income tax with a top rate of 4.4%. Your effective rate depends on your filing status and income brackets. Colorado uses a flat income tax and issues TABOR refunds when revenue exceeds limits.
What is the sales tax rate in Colorado? +
The Colorado state sales tax rate is 2.9%. When you include the average local rate of 4.99%, the combined rate is approximately 7.89%. Actual rates vary by city and county.
How do I calculate my Colorado take-home pay? +
Start with your gross salary, subtract federal income tax (based on your W-4 and tax bracket), subtract FICA taxes (7.65% — 6.2% Social Security up to the wage base + 1.45% Medicare), then subtract Colorado state income tax at your marginal rate. The remainder is your net take-home pay. Our calculator does this automatically.
What payroll deductions apply in Colorado? +
All Colorado employees pay federal income tax and FICA (Social Security 6.2% + Medicare 1.45%). State income tax is also withheld based on Colorado's brackets. Additional deductions may include 401(k) contributions, health insurance premiums, and any local taxes.
How often are Colorado employees typically paid? +
Most Colorado employees are paid biweekly (26 paychecks per year) or semi-monthly (24 paychecks). Some employers use weekly or monthly pay schedules. Our calculator supports all frequencies — enter your gross pay for one period and it calculates your net pay after all applicable Colorado taxes and deductions.
What does Colorado's flat 4.4% income tax mean for my paycheck? +
Every dollar of taxable wages is taxed at the same 4.4% rate regardless of how much you earn. On $60,000 of taxable income that works out to roughly $2,640 of Colorado income tax per year — about $102 per biweekly paycheck — before deductions, exemptions, and credits reduce the bill.
Which other states use a flat income tax? +
15 states tax wages at a single flat rate: Arizona (2.5%), Ohio (2.75%), Indiana (2.95%), Louisiana (3%), Pennsylvania (3.07%), Kentucky (3.5%), Iowa (3.8%), North Carolina (3.99%), Mississippi (4%), Michigan (4.25%), Colorado (4.4%), Utah (4.5%), Illinois (4.95%), Georgia (5.19%), and Idaho (5.3%). The national median top rate among all states and jurisdictions that tax wages is 5.25%, which puts Colorado's 4.4% below that benchmark.
What if I live in Colorado but work in another state? +
Colorado has no reciprocity agreements, so the state where you physically work usually withholds its own income tax. You then file a Colorado resident return reporting all your income and claim a credit for the tax paid to the other state. The credit is capped at what Colorado would have charged, so you effectively pay the higher of the two rates.
Are there local income taxes in Colorado? +
Yes. A few Colorado cities, including Denver and Aurora, charge a flat monthly occupational privilege tax on both the employee and the employer. That withholding is separate from the 4.4% state tax line and from federal tax and FICA, so your total deduction can be noticeably higher than the state rate alone suggests.
How do nearby states' income taxes compare with Colorado's? +
Kansas (top rate 5.58%); Nebraska (top rate 4.55%); New Mexico (top rate 5.9%); Oklahoma (top rate 4.5%); Utah (top rate 4.5%). 5 of the 5 nearby states listed have a higher top rate than Colorado's 4.4%.

Related Colorado Calculators

Colorado Sales Tax Calculator Calculate sales tax for purchases in Colorado Federal Paycheck Calculator Calculate your federal take-home pay

Other State Paycheck Calculators

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