Estimate your take-home pay in Colorado for 2026. The state levies income tax with a top rate of 4.4% (Flat rate of 4.4%). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Colorado Tax Snapshot
- State Income Tax
- 4.4% top rate
- Sales Tax (state + local avg)
- 7.79%
- Avg Property Tax Rate
- 0.51%
- Median Home Value
- $539,100
- State Minimum Wage
- $14.81/hr
Did You Know?
Colorado uses a flat income tax and issues TABOR refunds when revenue exceeds limits.
How Colorado Taxes Affect Your Paycheck
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 $14.81 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 7.79%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.