Colorado Tax Guide 2026

Colorado Income Tax Overview

Colorado has a Flat 4.4% rate. When combined with federal income tax and FICA taxes, Colorado residents in the median income range of $77,127 typically face a combined effective tax rate of approximately 30% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Colorado Sales Tax Rate 2026

Colorado's combined sales tax rate is 7.89%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $7.89 in sales tax — and $39.45 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in Colorado

Colorado homeowners pay an effective property tax rate of 0.49% annually. On the Colorado median home price of $545,000, that means approximately $2,671 per year — or $223 added to your monthly mortgage payment. Colorado's property taxes are among the lowest in the US, making homeownership more affordable relative to home prices.

Total Tax Burden for Colorado Residents

When calculating the total tax burden for a Colorado household earning $77,127 annually, you must add: federal income tax (approximately $9,255), FICA taxes (7.65% = $5,900), Colorado state income tax (approximately $2,376), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Colorado Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Colorado state income tax
• HSA contributions are deductible from both federal and state income tax in Colorado
• Check if Colorado has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Colorado conformity