Colorado tax summary for 2026
| Tax on wages | Flat rate |
|---|---|
| Starting point | Federal taxable income |
| Rates (single) | 4.4% |
| Standard deduction | None |
| Personal exemption | None |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | Family and Medical Leave Insurance (FAMLI) – employee share |
| Local income taxes | Yes — 1 in our data |
Colorado income tax brackets 2026
Rates apply to Colorado taxable income, after the deductions above. Married filing separately uses the single brackets unless the state publishes its own.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 4.4% |
Colorado employee payroll taxes
| Program | Employee rate | Wage base | Annual maximum |
|---|---|---|---|
| Family and Medical Leave Insurance (FAMLI) – employee share 2026 total premium rate is 0.88%. Employers with 10+ employees split 50/50; employee pays up to 0.44%. Employers with 9 or fewer employees: total 0.44%, all from employee. Wage base is 2026 Social Security cap ($184,500). | 0.44% | $184,500 | $811.80 |
Local income taxes in Colorado
Denver levies an Occupational Privilege Tax (OPT) on employees who earn at least $500 from services performed within Denver in a calendar month. The Aurora OPT was repealed effective January 1, 2025 and no longer applies. Basis: flat per period; applies to employees earning ≥$500/month in Denver.
| Jurisdiction | Amount | Nonresident rate |
|---|---|---|
| Denver | $5.75 per month | $5.75 |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions and no local tax.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Colorado income tax | $82.75 | $2,152 |
| Family and Medical Leave Insurance (FAMLI) – employee share | $11.00 | $286 |
| Take-home pay | $1,998.84 | $51,970 |
Effective tax rate 20.0%; tax on the next dollar earned 24.5%. Colorado taxable income is $48,900. Adding Denver local tax would cost $69 a year.
Second example: $120,000, married filing jointly, two children
Take-home $100,789 a year ($3,876.49 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Colorado income tax $3,863, state payroll taxes $528.
How the Colorado estimate is calculated
- Start from federal taxable income — so the federal standard deduction and any 2025–2028 federal deductions carry through.
- Colorado has no standard deduction in our data.
- Apply the flat rate (married filing separately uses the single brackets).
- Add Family and Medical Leave Insurance (FAMLI) – employee share on wages after Section 125 deductions, up to its wage base or annual cap.
- If you pick a locality, add local tax on flat per period.
- Divide the annual total by your number of paychecks.
What this Colorado calculator does not model
- Colorado overtime add-back: for tax years 2026 and later, the federal qualified overtime deduction must be added back (C.R.S. 39-22-104(3)(u), HB25-1296 as amended by HB26-1289). The estimate starts from federal taxable income and therefore understates Colorado tax for anyone claiming the federal overtime deduction. (No add-back for the federal tips deduction.)
- High-income add-back of federal itemized/standard deductions above $12,000 ($16,000 joint) when AGI is $300,000 or more
- Qualified business income deduction add-back (permanent from 2026, HB25B-1001) for AGI over $500,000 ($1,000,000 joint)
- Colorado subtractions (Social Security/pension, military retirement, state income tax refund, etc.)
- Colorado Earned Income Credit, Family Affordability Credit and Child Tax Credit
- Any temporary TABOR-triggered rate reduction for 2026 (determined after the fiscal year; none certified as of 2026-10-07)
Data notes
- Colorado flat rate 4.40% for 2026 (C.R.S. 39-22-104), confirmed on the DR 1098 2026 worksheet.
- Colorado taxable income starts from federal taxable income (after the federal standard or itemized deduction), so there is no separate Colorado standard deduction. The $5,500/$11,000 amounts on DR 1098 are a withholding approximation and are not used.
- Because Colorado starts from federal taxable income, federal deductions it does not add back (e.g. the tips deduction, senior deduction) flow through; the overtime deduction is added back starting 2026 — see notModeled.
Sources
- State income tax: Colorado Department of Revenue – DR 1098 2026 Colorado Withholding Worksheet for Employers (rate 4.40%) (read 2026-10-07)
- State income tax: Colorado General Assembly – HB25-1296 (overtime deduction add-back, effective 2026) (read 2026-10-07)
- State income tax: Colorado General Assembly – HB26-1289 (amends the overtime add-back; applies to tax years beginning on/after Jan 1, 2026) (read 2026-10-07)
- Family and Medical Leave Insurance (FAMLI) – employee share: Premium and Benefits Calculator – FAMLI Colorado (read 2026-10-07)
- Local income tax: Business Tax FAQ – Occupational Privilege Tax – City and County of Denver (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Arizona, Kansas, Nebraska, New Mexico, Oklahoma, Utah, Wyoming
States with a similar tax setup: Kentucky, North Carolina, Pennsylvania, Idaho, Indiana, Iowa
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.