tax

Colorado



Colorado's state income tax rate is a flat 4.63 percent of your federal taxable income, regardless of your income level. More on Colorado taxes can be found in the tabbed pages below.

Income
Sales
Property
Estate
Other
Personal income tax
The Colorado income tax rate is a flat 4.63 percent of your federal taxable income, regardless of income level. State law allows for the rate to be temporarily reduced to 4.5 percent if the budget meets certain targets.
Colorado tax returns are due April 15, or the next business day if that date falls on a weekend or holiday.
Colorado tax returns can be filed electronically, either online via NetFile or by touch-tone telephone with the state's TeleFile system. Both options are available 24-hours a day, every day throughout the income tax season. Most Colorado filers are eligible to use at least one of the e-file methods.
Sales tax
Colorado's state sales tax is 2.9 percent on retail sales.
Many counties and cities charge their own rates in addition to the base state rate. There are also certain county and special district taxes that may apply. The most common special district taxes are:
  • Regional Transportation District, or RTD, which affects the counties of Denver, Boulder, Jefferson and portions of Adams, Arapahoe, Broomfield and Douglas.
  • Cultural Facilities District, or CD.
  • Football Stadium District, or FD or FTBL, approved by the voters to pay for and help build the Denver Broncos' stadium.
  • Local Improvement District, or LID, within designated areas of southeast Jefferson and Boulder counties.
  • Regional Transportation District, or RTA, taxes at varying rates in Basalt, Carbondale, Glenwood Springs and Gunnison County.
Locate your city and county sales tax rates with the Department of Revenue's online rate finder.
Personal and real property taxes
Real estate and personal business property are taxable in Colorado.
Personal business property includes computers, shelving, furniture, equipment and items that directly or indirectly produce income within your business.
The county assessor determines the value of property using a market, cost or income approach. Property taxes then are assessed on a percentage of the property's actual value. You can determine your property tax bill by multiplying the assessed value by your local tax rate.
The county assessor will mail a declaration schedule for property taxes after Jan. 1. The county treasurer is responsible for mailing and collecting the actual property tax bill. If the tax amount is $10 or less, an administrative fee of $5 may be added to the bill. If it is $25 or less, it must be paid in one payment by April 30. Bills greater than $25 can be paid in installments, with the first half payment due by the last day of February and the remainder due by June 15.
Colorado offers a rebate for property taxes and heating costs, whether paid directly or as a part of rent payments, to qualifying elderly, disabled and lower-income taxpayers. File Form 104 PTC to claim the rebate. For additional information, call (303) 238-FAST (3278).
Inheritance and estate taxes
The Colorado estate tax does not apply to decedents whose date of death is on or after Jan. 1, 2005. The Colorado estate tax is based on the state death tax credit allowable on the federal return. That credit was eliminated, effective Dec. 31, 2004, as a result of federal estate tax law changes. Future changes to the federal laws will determine whether states will collect an estate tax in future years.
Colorado has no gift tax on transfers of property by gifts, if the transfers occurred after Jan. 1, 1980.
For more information, call the Colorado Department of Revenue at (303) 232-2446 or go to the Web site.
Other Colorado tax facts
Colorado was the first state to allow taxpayers to check off a voluntary contribution to a charitable program on their annual state returns. This year, Colorado taxpayers can choose from 15 funds to which they can direct their money.
The state maintains an online list of delinquent taxpayers.
Colorado does not levy an intangible personal property tax.
For more information, go to the Colorado Department of Revenue's Web site or call (800)-659-3656.
To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.
  

-- Updated: Feb. 4, 2008

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