Yesterday we released an independent report (PDF) analyzing Nevada Governor Brian Sandoval’s proposed Business License Fee tax. The proposal replaces Nevada’s current $200-flat business license fee with a tiered gross...
The facts on Colorado’s Tax Climate
4.63%individual income taxFlat rate
4.63%corporate income taxFlat rate
$1349property 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 15th lowest among states levying an individual income tax. Colorado's state and local income tax collections per person were $946 in 2012 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 8th lowest among states levying a corporate income tax. Colorado's state and local corporate income tax collections per person were $96 in 2012 which ranked 15th 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 5.95%. The average local sales tax rate is an additional 4.54%. Colorado's state and local governments collect $1054 per person in general sales taxes and $421 per person in excise taxes, for a combined figure of $1475, which ranks 24th highest nationally. Colorado's gasoline tax stands at 22¢ (16th 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 Average
Colorado's state and local governments collected approximately $1349 per person in property taxes in 2012, which ranks 22nd highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 22nd 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 2014, Colorado taxpayers worked until April 22nd (13th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Arizona, April 11th (ranked 15th earliest nationally); Utah, April 17th (ranked 21st latest nationally); Wyoming, April 17th (ranked 21st latest nationally); Nebraska, April 14th (ranked 23rd earliest nationally); Kansas, April 18th (ranked 19th latest nationally); Oklahoma, April 11th (ranked 15th earliest nationally); and New Mexico, April 8th (ranked 7th earliest nationally).
Colorado's State and Local Tax Burden Below National Average
Colorado's 2011 tax burden of 9% ranks 19th lowest out of 50 states, and is below the national average of 9.8%. Colorado's taxpayers pay $4220 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 2015 Business Tax Climate Index Ranks 20
Colorado ranks 20th 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, 23rd, Utah, 9th, Wyoming, 1st, Nebraska, 29th, Kansas, 22nd, Oklahoma, 32nd, and New Mexico, 38th.
State Business Tax Climate Index (full study)
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