As the tax reform debate begins to heat up, businesses and investors are beginning to pay closer attention to the House GOP Tax Reform Blueprint, a tax plan released last June by Speaker Paul Ryan and House Ways and...
The facts on Colorado’s Tax Climate
4.63%individual income taxFlat rate
4.63%corporate income taxFlat rate
$1,333property taxcollections per capita
Colorado's Individual Income Tax System
Colorado's individual income tax system consists of a flat rate of 4.63%. That rate ranks 36th highest among states levying an individual income tax. Colorado's state and local income tax collections per person were $1,057 in 2014, which ranked 17th highest nationally.
Colorado's Corporate Income Tax System
Colorado's corporate income tax system consists of a flat rate of 4.63%. That rate ranks 42nd highest among states levying a corporate income tax. Colorado's state and local corporate income tax collections per person were $134 in 2014 which ranked 23rd highest nationally.
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 4.62%. Colorado's state and local governments collect $1,162 per person in general sales taxes (16th nationally) and $426 per person in excise taxes (37th nationally). Colorado's gasoline tax stands at 22 cents per gallon, 37th highest nationally, while its cigarette tax stands at $0.84, 36th highest nationally.
Colorado Property Tax Collections Average
Colorado's state and local governments collected approximately $1333 per person in property taxes in 2013, which ranks 24th nationally.
Tax Freedom Day Arrives on April 24th in Colorado
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Colorado taxpayers have to work until April 24th (37th earliest nationally) to pay their total tax bill.
Colorado's State and Local Tax Burden Ranks 35th
Colorado's 2012 tax burden of 8.9% ranks 35th highest in the nation, and is below the national average of 9.9%. Colorado's taxpayers pay $4,304 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 2016 Business Tax Climate Index Ranks 18th
Colorado ranks 18th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (15th), individual income taxes (16th), sales taxes (44th), unemployment insurance taxes (33rd), and taxes on property (12th), including residential and commercial property.
State Business Tax Climate Index (full study)
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