Taxes in Colorado

Colorado Tax Rates, Collections, and Burdens

How does Colorado’s tax code compare? Colorado has a flat 4.55 percent state individual income tax rate.  Colorado has a 4.55 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 7.77 percent. Colorado’s tax system ranks 20th overall on our 2022 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?


Related Articles

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

Lunch Links: Toll Roads Reduce Non-Tolled Traffic, KU Coach Uses Kansas Tax Break, Labor Department Overtime Rule

May 18, 2016

Lunch Links: States Could Raise $5 Billion from Marijuana Taxes, Colorado Universal Health Care, Popular Governors

May 13, 2016

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

May 12, 2016

Lunch Links: IRS Auditing by Telephone, President Obama vs. Senator Paul on Tax Treaties, Jamba Juice Flees California

May 9, 2016

U.S. Supreme Court Declines to Hear Case Challenging Colorado Marijuana Law

March 21, 2016

Voters in Five States Decide Tax-Related Ballot Initiatives

November 4, 2015

Voters in Five States Consider Tax-Related Initiatives

November 2, 2015

Which States Have the Worst Sales Tax Administration?

October 30, 2015

Colorado Suspends Marijuana Tax for One Day on September 16

September 9, 2015

Colorado Will Face Vote on TABOR Refunds from Marijuana Taxes

June 9, 2015

Colorado’s Marijuana Revenue High and Pending TABOR Refunds

May 27, 2015

Colorado’s Burdensome Tax Notification Law Violates the Commerce Clause: Direct Marketing Association v. Brohl

May 3, 2015

Marijuana Taxes Not a Panacea for Budgets, Utah Vapor Tax Scrapped, and a Proposed Cigarette Tax in Rhode Island

April 10, 2015

Supreme Court Lets Taxpayers Challenge Internet Sales Tax Law, But With a Warning

March 3, 2015