Tax Year 2026Updated July 21, 2026

Colorado Tax Calculator & Rates 2026

Q: What is Colorado's income tax rate for 2026?

Colorado has a flat state income tax rate of 4.40% for tax year 2026. This rate applies to federal taxable income - the same income figure you compute on your federal return, already reduced by the standard or itemized deduction. Colorado has no separate state standard deduction or exemptions.

Q: What is the sales tax rate in Colorado?

Colorado's state sales tax rate is 2.90% - one of the lowest state rates in the nation. However, Colorado has extremely complex local sales tax jurisdictions : cities, counties, and special districts each levy separate taxes, making combined rates vary widely. Denver's combined rate, for example, exceeds 8%. Groceries are exempt from the state rate.

Q: Does Colorado have a local income tax?

Colorado has no local income tax . Only the flat 4.40% state rate applies to income. Local governments in Colorado raise revenue primarily through sales taxes and property taxes, not income taxes.

Colorado levies a flat 4.40% state income tax on federal taxable income for 2026 - one of the most straightforward income tax systems in the country. Because Colorado starts from federal taxable income, all OBBBA deductions (tips, overtime, senior bonus) automatically reduce Colorado taxable income without any additional state action. Employees also contribute 0.45% of wages to the Colorado FAMLI paid leave program. The state sales tax rate is 2.90%, though local additions vary widely.

State Income Tax

Flat 4.40%

FAMLI (employee)

0.45% of wages

State Sales Tax

2.90% + local

Supplemental Rate

4.40%

Colorado Income Tax 2026

Colorado applies a flat 4.40% to federal taxable income. Unlike most states, Colorado does not start from federal adjusted gross income (AGI) - it uses federal taxable income, which is already reduced by the standard deduction or itemized deductions. No separate Colorado standard deduction or personal exemption applies.

Colorado FAMLI - Paid Family & Medical Leave

Colorado's Family and Medical Leave Insurance (FAMLI) program deducts 0.45% of gross wages from employee paychecks, with no wage cap. Employers with 10+ employees contribute an equal 0.45% employer share. Employers with fewer than 10 employees are exempt from the employer portion but must still withhold the employee share.

Colorado Sales Tax

Colorado's state sales tax rate is 2.90%. Colorado has among the most complex local sales tax structures in the country - cities, counties, and special districts each independently levy their own sales taxes. Combined rates range widely across the state, from near the state rate in rural areas to over 8% in Denver and other urban centers. Groceries are exempt from the Colorado state sales tax.

Colorado Tax Calculators

Colorado Paycheck Calculator Colorado Tips Tax Colorado Overtime Tax

Frequently Asked Questions

What is Colorado's income tax rate for 2026?

Colorado has a flat state income tax rate of 4.40% for tax year 2026. This rate applies to federal taxable income - the same income figure you compute on your federal return, already reduced by the standard or itemized deduction. Colorado has no separate state standard deduction or exemptions.

What is the Colorado FAMLI tax on my paycheck?

Colorado's Family and Medical Leave Insurance (FAMLI) program requires employees to contribute 0.45% of gross wages with no wage cap. Employers with 10 or more employees match this amount. The total FAMLI premium is 0.90%, split 0.45% employee / 0.45% employer. FAMLI provides up to 12 weeks of paid leave for qualifying family and medical events.

What is the sales tax rate in Colorado?

Colorado's state sales tax rate is 2.90% - one of the lowest state rates in the nation. However, Colorado has extremely complex local sales tax jurisdictions: cities, counties, and special districts each levy separate taxes, making combined rates vary widely. Denver's combined rate, for example, exceeds 8%. Groceries are exempt from the state rate.

Does Colorado have a local income tax?

Colorado has no local income tax. Only the flat 4.40% state rate applies to income. Local governments in Colorado raise revenue primarily through sales taxes and property taxes, not income taxes.