ColoradoSalary Calculator 2026 — Take-Home Pay After Federal & State Taxes

Colorado uses a flat 4.4% state income tax rate, down from 4.55% after Proposition 116 passed in 2020. The flat structure means every dollar of taxable income is taxed at the same rate — simple to calculate and predict. Colorado conforms to the federal standard deduction, so the same $15,000 standard deduction (2026) applies at the state level. Denver and other Colorado cities do not levy a local income tax. Colorado also has a Taxpayer's Bill of Rights (TABOR) that limits government revenue growth and has returned tax refunds to residents in several recent years through the TABOR excess. The state's tax system is generally considered moderate — notably lower than neighboring California and similar to other Mountain West states. Colorado's growing economy and outdoor lifestyle continue to attract workers despite rising housing costs in the Denver metro.