Taxes in Colorado

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Colorado’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

4.63%

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State and Local Individual Income Tax Collections per Capita

$1168

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State and Local Tax Burden

8.9%

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Tax Freedom Day

April 24

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Top Corporate Income Tax Rate

4.63%

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State Business Tax Climate Index Ranking

18

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State Sales Tax Rate

2.90%

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Average Local Sales Tax Rate

4.62%

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Combined State and Average Local Sales Tax Rate

7.52%

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State and Local General Sales Tax Collections per Capita

$1208

State Gasoline Tax Rate (cents per gallon)

22.00¢

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State Cigarette Tax Rate (dollars per 20-pack)

$0.84

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.59%

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State and Local Property Tax Collections Per Capita

$1382


Featured Articles

New Op-Ed in U.S. News & World Report on Soda Taxes

October 19, 2016

Marijuana Legalization and Taxes: Lessons for Other States from Colorado and Washington

May 12, 2016


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Results of 2018 State and Local Tax Ballot Initiatives

November 6, 2018

2018 Outstanding Achievement in State Tax Reform

October 30, 2018

Top State Tax Ballot Initiatives to Watch in 2018

October 22, 2018

Colorado Announces Online Sales Tax Collection Starting November 1

September 11, 2018

CBPP Urges States to Adopt Colorado Internet Tax Law, Despite Major Problems

August 4, 2017

State Tax Changes Taking Effect July 1, 2017

June 27, 2017

Potential Colorado Ballot Measure Shows How Not to Design a Sales Tax

April 18, 2017

Guide to Tax-Related Ballot Questions (UPDATED WITH RESULTS)

November 8, 2016

Lunch Links: Growing Nature of Marijuana Taxes; Meeting of the Minds between EU and Ireland; Out of His Role as Trump, Alec Baldwin in Some Tax Trouble

November 8, 2016

Lunch Links: Raising Gas Taxes A ‘Non-Issue’ for Incumbents in Iowa Legislative Races; High-Income Earner Taxes on Ballot in California and Maine; Corporate Tax Breaks for Housing, Development Projects Cost NYC $3 Billion

November 3, 2016

Competing Visions for Tobacco Taxes in Colorado and North Dakota

November 1, 2016

Lunch Links: Questionable Trump Tax Maneuver to Avoid Debts Cited; Colorado Rebuts Arizona Ads Opposing State’s Marijuana Voter Proposition; Left’s Opposition to Washington Carbon Tax Criticized; Yale Daily News Endorsement Puts Tax Exemption at Risk

November 1, 2016

Lunch Links: Britain Hints at Cutting Corporate Tax Rate Over EU Trade Impasse; Former Oregon Governor Against Gross Receipts Tax Measure; Voting to Legalize Marijuana in Massachusetts Could Lead to Higher Tax

October 26, 2016

Lunch Links: Deficit Dilemma Debated; First-Year $$$ Projection Topped from Nevada Gross Receipts Tax; State Ballot Initiatives Analyzed

October 21, 2016

New Paper on the ColoradoCare Amendment

October 20, 2016

Colorado Amendment 69

October 20, 2016

New Op-Ed in U.S. News & World Report on Soda Taxes

October 19, 2016

Top State Tax Ballot Initiatives to Watch in 2016

October 18, 2016

Lunch Links: Bernie Sanders on the Campaign Stump for Health Care Initiative (and Tax) in Colorado; Nevada Gov. Signs Bills for Hotel and Sales Tax Increases to Fund NFL-Ready Stadium; Legality and Tax of Recreational Marijuana Examined in Michigan

October 17, 2016

Lunch Links: Puerto Rico Vote This Week, Gun Tax, and TABOR Survives Constitutional Challenge

June 6, 2016