Ahead of the Senate hearing on “Offshore Profit Shifting and the U.S. Tax Code,” I released a report reminding us that contrary to the perception created by these types of political spectacles, corporations pay a...
The facts on Colorado’s Tax Climate
4.63%individual income taxFlat rate
4.63%corporate income taxFlat rate
$1601property taxcollections per capita
Colorado's Individual Income Tax System
Colorado's personal income tax system consists of a flat rate of 4.63%. That rate ranks 13th lowest among states levying an individual income tax. Colorado's income tax collections per person were $816 in 2010 which ranked 25th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Colorado's Corporate Income Tax System
Colorado's corporate income tax system consists of a flat rate of 4.63%. That rate ranks 7th lowest among states levying an corporate income tax. Colorado's corporate tax collections per person were $72 in 2010 which ranked 17th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Colorado Sales and Excise Taxes
Colorado levies a 2.9% general sales or use tax on consumers, which is below the national median of 6%. The average local sales tax rate is an additional 4.49%. Colorado's state and local governments collect $997 per person in general sales taxes and $351 per person in excise taxes, for a combined figure of $1348, which ranks 22nd highest nationally. Colorado's gasoline tax stands at 22¢ (18th lowest nationally), while its cigarette tax stands at $0.84 (18th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Colorado Property Tax Collections Relatively High
Colorado's state and local governments collected approximately $1601 per person in property taxes, which ranks 13th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 17th in Colorado
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Colorado taxpayers worked until April 17th (16th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Arizona, April 5th (ranked 8th earliest nationally); Utah, April 13th (ranked 24th earliest nationally); Wyoming, April 16th (ranked 17th latest nationally); Nebraska, April 12th (ranked 23rd earliest nationally); Kansas, April 9th (ranked 16th earliest nationally); Oklahoma, April 6th (ranked 9th earliest nationally); and New Mexico, April 3rd (ranked 5th earliest nationally).
Colorado's State and Local Tax Burden Below National Average
Colorado's 2010 tax burden of 9.1% ranks 19th lowest out of 50 states, and is below the national average of 9.9%. Colorado's taxpayers pay $4104 per capita in state and local taxes.
Colorado's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Colorado's 2013 Business Tax Climate Index Ranks 18
Colorado ranks 18th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Arizona, 25th, Utah, 10th, Wyoming, 1st, Nebraska, 31st, Kansas, 26th, Oklahoma, 35th, and New Mexico, 38th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
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