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Taxes In Colorado

Colorado Tax Rates, Collections, and Burdens

How does Colorado’s tax code compare? Colorado has a flat 4.40 percent state individual income tax rate.  Colorado has a 4.40 percent corporate income tax rate. There are jurisdictions that collect local income taxes. Colorado also has a 2.90 percent state sales tax rate, a max local sales tax rate of 8.30 percent, and an average combined state and local sales tax rate of 7.78 percent. Colorado’s tax system ranks 27th overall on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Colorado is no exception. The first step towards understanding Colorado’s tax code is knowing the basics. How does Colorado collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
4.40%See Full Study
State Local Individual Income Tax Collections per Capita
$1763Rank: 13
State and Local Tax Burden
9.7%Rank: 19See Full Study

Business Taxes

Top Corporate Income Tax Rate
4.40%See Full Study
State Business Tax Climate Index Ranking
21See Full Study

Sales Taxes

State Sales Tax Rate
2.90%Rank: 45See Full Study
Average Local Sales Tax Rate
4.87%See Full Study
Combined State and Average Local Sales Tax Rate
7.78%Rank: 15See Full Study
State and Local General Sales Tax Collections per Capita
$1498Rank: 15
State Gasoline Tax Rate (cents per gallon)
22.00¢Rank: 42
State Cigarette Tax Rate (dollars per 20-pack)
$1.94Rank: 23

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.55%Rank: 48
State and Local Property Tax Collections Per Capita
$1955Rank: 14

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