State taxes: Colorado

Taxes » Income Taxes » State Taxes » 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.

Personal income tax

The Colorado income tax rate is a flat 4.63 percent of your federal taxable income, regardless of income level.

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 as part of Colorado's participation in the IRS' Federal/State Electronic Filing program. You also can e-file for free by establishing a Revenue Online account.

Sales taxes

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.

Certain county and special district taxes may apply. 

Locate your city and county sales tax rates with the Department of Revenue's online rate finder.

In Colorado taxing jurisdictions where the state administers collection, most goods are subject to sales tax, and most services are not. However, jurisdictions that collect taxes themselves can establish their own regulations as to which goods and services are subject to their local sales and use taxes.

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 you have questions about your property taxes, check the county listing in the blue pages of a local telephone book for the Colorado county property tax office that applies to you or check Colorado Counties Online for your county's website.

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 104PTC to claim the rebate.

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 does impose an income tax on estates and trusts. The tax, sometimes referred to as fiduciary income tax, is a flat 4.63 percent. When an estate or trust is administered in Colorado, it is considered to be a resident estate or trust. Nonresident estates or trusts that are not administered in Colorado must file a return if they have Colorado source of income.

Colorado has no gift tax on transfers of property by gifts, if the transfers occurred after Jan. 1, 1980.

For more information, visit the Colorado Department of Revenue website or call (303) 866-4622.

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 14 funds to which they can direct their money.

Colorado does not levy an intangible personal property tax.

For more information, go to the Department of Revenue's website or call (800) 852-5711 free.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.


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