Colorado individual income tax
Colorado's individual income tax is a tax on the income earned by residents, part-time residents, and nonresidents of the state. The tax is based on the individual's federal-adjusted gross income, with a flat rate of 4.4%.
April 18
Return due in 2023
4.4%
Flat tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit
What is Colorado income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Colorado on individuals that meet the taxable criteria.
Taxable incomes
Colorado taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Colorado has flat rate tax of 4.4%
Standard deduction
Standard deduction is $12,950 for single filers and $25,900 for joint filers and $19,400 for heads of the family for the taxable year 2022.
Changes in 2023
For the taxable year 2022, the flat rate tax was reduced from 4.55% to 4.4%
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Colorado taxable income | Flat tax rate |
|---|---|
| Flat tax | 4.4% |
Individual income tax
The State of Colorado requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Colorado.
Types of taxable incomes
The income types on which tax is levied are:
In Colorado, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Colorado, first, file the federal income tax return with the IRS. Use the federal tax return for Colorado tax return. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date. Deadlines for Colorado are same as Federal deadlines, to be filed annually or quarterly as the case maybe.
Due
federal deadline
Pay taxes
Taxes in Colorado are due as per Federal deadlines, that is, by 18 April, 2023, to be paid annually or quarterly as the case maybe (based on Federal rules). Go to the official Colorado Department of Revenue website.
Type of tax
flat tax
Due
federal deadline
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Colorado refers to an individual's permanent home or place of residence in the state.
Colorado full year resident
A Colorado resident is someone who either currently resides in Colorado or intends to make it their permanent home or resides in the state for more than 6 months of a calendar year.
Colorado part-year resident
A Colorado Part-Year Resident is someone who moved into or moved out of the state during the tax year. Individuals who are considered part-year residents of Colorado must first calculate their state tax liability as if they were full-year residents. This calculated amount will then be proportionately adjusted, taking into account the percentage of their income that is subject to Colorado income tax.
Part-year residents must complete a Part-Year Resident Tax Calculation Schedule (Form 104PN) and a Colorado Individual Income Tax Return (DR 0104), to calculate the percentage of their income that is subject to Colorado income tax.
Colorado non-resident
An Colorado Nonresident is someone who does not have a permanent residence in the state. Individuals who are considered nonresidents of Colorado must first calculate their state tax liability as if they were full-year residents. This calculated amount will then be proportionately adjusted, taking into account the percentage of their income that is subject to Colorado income tax.
Nonresidents who receive income from Colorado sources are required to pay Colorado taxes. This includes income from Colorado for services performed in the state.
Non-residents must complete a Non-Resident Tax Calculation Schedule (Form 104PN) and a Colorado Individual Income Tax Return (DR 0104), to calculate the percentage of their income that is subject to Colorado income tax.
Frequently asked questions
Business entities in Colorado
There are several business entities in Colorado
Colorado LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time