Colorado Income Tax Rate For 2023
Colorado has one individual income tax bracket with a flat rate of 4.4%. Below you will find 2023 Colorado tax brackets and tax rates for all four CO filing statuses. The Colorado tax rate and tax brackets tabulated below are based on income earned between January 1, 2023 through December 31, 2023. Individual taxpayers will submit both their federal tax forms and state tax forms by April 15, 2024.
The current Colorado income tax rate is 4.4%. The Colorado legislature has been steadily reducing the state income tax rate from 4.63% prior to 2019, to 4.55% since 2020, and 4.4% since 2022. Furthermore, a TABOR reduction may be triggered in any given year due to a revenue surplus calculation. We will have to wait until the Colorado tax forms and instructions print to know if a reduction will be authorized this year.
Colorado Income Tax Calculation For $70,000 In Wages
- Tax Year: 2023
- Filing Status: Single
- Colorado Tax Rate: 4.4%
- Federal Standard Deduction: $13,850
- Colorado Income Tax Estimate: $2,471
- Colorado Effective Tax Rate: 3.53%
To simplify and standardize the calculation across states, we assume the taxpayer has only income from Wages, salaries, tips, etc Line 1 on federal Form 1040. Colorado Form 104 begins with federal taxable income, 1040 Line 15. That means we must subtract the federal standard deduction amount of $13,850 from our 2023 wages. The result is our Colorado taxable income, which we can then multiply by the 2023 Colorado tax rate of 4.4%.
Colorado Income Tax = ( $70,000 - $13,850 ) × 4.4% = $2,471
To calculate the effective income tax rate for the state of Colorado, we simply divide the previously calculated income tax estimate by our initial $70,000 in wages.
Colorado Effective Tax Rate = $2,471 ÷ $70,000 = 3.53%
The actual amount of income tax you will pay in the state of Colorado will vary. Colorado, as with other states, often allow taxpayers to make additions and subtractions to their federal taxable income. Many states also offer credits for families with children, charitable contributions, and environmental initiatives, for example.
Colorado 2023 Income Tax Brackets by Filing Status
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.4% |
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.4% |
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.4% |
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.4% |
Please reference the Colorado tax forms and instructions booklet published by the Colorado Department of Revenue to determine if you owe state income tax or are due a state income tax refund. Colorado tax forms are generally published at the end of each calendar year, which will include any last minute 2023 - 2024 legislative changes to the CO tax rate or tax brackets. The Colorado tax brackets and tax rates calculated on this web page are to be used for illustration purposes only.
Frequently Asked Questions
Which Colorado tax bracket am I in?
In the state of Colorado there is just one personal income tax bracket. Every individual taxpayer is therefore in the same bracket regardless of filing status and amount.
What is the Colorado income tax rate for 2023?
Colorado's 2023 income tax rate is 4.4%.
What is Colorado's marginal tax rate?
The current flat tax rate for Colorado is 4.4%. The Colorado marginal tax rate used in our example calculation above on this page is 4.4%. That is the tax rate applied to each additional dollar of taxable income you earn. Since Colorado is a flat tax rate state, the nominal or official tax rate equals the marginal tax rate.
What is Colorado's effective tax rate?
Colorado's effective tax rate is 3.53%. Effective tax rate equals the total tax paid divided by total taxable income. Find our Colorado tax rate calculations above on this page for more information.
How much state income tax will I pay in Colorado?
The national average adjusted gross income (AGI) reported by the IRS each year is about $70,000. A single Colorado taxpayer with $70,000 in wages would pay approximately $2,471 to the Colorado Department of Revenue. Find our Colorado tax rate calculations above on this page for more information.
Does Colorado have a standard deduction?
No. Colorado does not have a standard deduction for 2023.
Does Colorado have a personal exemption?
No. Colorado does not have a personal exemption for 2023.
Does Colorado have a dependent exemption?
No. Colorado does not have a dependent exemption for 2023.
Is Colorado a flat tax state?
Yes. Colorado's state income tax rate is a flat 4.4% of your taxable income. Regardless of your income level, you will pay the same rate. There are nine flat tax rate states in the United States: Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah
Last updated: November 2, 2023
References:
- Individual Income Tax Frequently Asked Questions. Taxation Division, Colorado Department of Revenue. Retrieved November 2, 2023.
- All Recent Colorado TABOR Refunds. Taxation Division, Colorado Department of Revenue. Retrieved November 2, 2023.
- Individual Income Tax. Legislative Council Staff, Colorado General Assembly. Retrieved November 2, 2023.