What is Colorado Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in Colorado as a Colorado resident, part-year resident, or a nonresident with Colorado-source income, you may need to file a Colorado state income tax return along with your federal return. Colorado uses a flat income tax system, so the same rate applies to your taxable income regardless of filing status.

This guide explains Colorado’s 2025 income tax rate, standard deduction, available exemptions, deductions, and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Colorado’s tax rules to help you accurately prepare your Colorado return alongside your federal return.

What is the Colorado state income tax?

Colorado state income tax is a tax on income earned by individuals and collected by the Colorado Department of Revenue to help fund state services.

Colorado taxes individual income on a flat-rate basis rather than using progressive brackets. For tax year 2025, the Colorado individual income tax rate is 4.4%, up from 4.25% in 2024. Colorado generally starts with your federal taxable income and applies Colorado additions and subtractions on Form DR 0104.

Colorado income tax rates and tax brackets

Colorado imposes a flat income tax rate on its taxpayers. The flat income tax rate for 2025 is 4.4% and applies to all filers regardless of income level or filing status:

Filer Type	Tax Rate
Single	4.4%
Married Filing Separately	4.4%
Married Filing Jointly	4.4%
Head of Household	4.4%

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.

Colorado standard deduction

Colorado does not have a separate state standard deduction. Colorado taxable income generally starts with your federal taxable income, which already reflects the federal standard deduction or itemized deductions you claim on your federal return.

For tax year 2025, the federal standard deduction amounts that flow through to most Colorado returns are shown below.

Filing status	Federal standard deduction (2025)
Single	$15,750
Married Filing Separately	$15,750
Married Filing Jointly	$31,500
Head of Household	$23,625

Note: If your federal adjusted gross income exceeds $300,000, Colorado may require an addback for the portion of your federal standard or itemized deductions that exceeds $12,000 (for single, married filing separately, or head of household filers) or $16,000 (for married filing jointly filers) for tax years 2023 through 2025.

Colorado exemptions, deductions, and credits

Colorado offers several deductions and credits that may reduce what you owe. Common items include:

Colorado Child Tax Credit and Family Affordability Tax Credit— Colorado offers separate refundable credits for qualifying families. For 2025, the Colorado Child Tax Credit generally applies to eligible children age 5 and younger, while the Family Affordability Tax Credit can apply to eligible children under age 17. Income limits and other eligibility requirements apply.
Colorado Earned Income Tax Credit — A refundable credit equal to 50% of your federal earned income tax credit for tax year 2025.
Charitable Contribution Subtraction — If you claim the federal standard deduction, you may subtract your total amount of qualifying charitable contributions in excess of $500 on your Colorado return. For example, you would take your total amount of qualifying contributions and subtract $500 to calculate the deductible amount.
CollegeInvest Contribution Subtraction — Contributions to a qualifying Colorado 529 savings plan administered by CollegeInvest may be subtracted from Colorado taxable income. For 2025, the per-beneficiary subtraction limits increased to $25,400 for single filers and $38,100 for joint filers.
Credit for Tax Paid to Another State — Colorado residents may qualify for a credit for qualifying income tax accrued to another state on income that is also subject to Colorado tax.

For a full list of Colorado income tax credits and subtractions, see the Colorado Department of Revenue.

Colorado tax changes for 2025

The Colorado flat income tax rate increased from 4.25% for tax year 2024 to 4.4% for tax year 2025.
Maximum Family Affordability Tax Credit amounts increased for tax year 2025 — up to $3,273 per qualifying child under age 6 and $2,455 per qualifying child ages 6–16 (up from $3,200 and $2,400 for 2024).
New Disability Assistance Credit — Beginning with tax year 2025, qualifying full-year Colorado residents with disabilities may claim a new refundable Disability Assistance Credit ranging from $400 to $1,200, subject to income and eligibility requirements.
Wildfire mitigation tax benefit changed — For 2025, Colorado repealed the former wildfire mitigation subtraction and increased the Wildfire Mitigation Expenses Credit to 100% of qualifying expenses, up to $1,000, subject to income and other eligibility requirements. The credit generally applies to qualifying costs paid to third-party service providers.
2025 TABOR refund amounts decreased — Colorado’s state sales tax TABOR refund is considerably smaller for tax year 2025. Depending on modified AGI, qualifying taxpayers may receive $19 to $59 for single filers (down from $177 to $565) or $38 to $118 for joint filers (down from $354 to $1,130).

FAQs

Does Colorado have a state income tax?

Yes, Colorado has a state income tax.

What is the Colorado income tax rate?

Colorado’s individual income tax rate is 4.4% for tax year 2025. Because Colorado uses a flat tax, the same rate applies regardless of your income level or filing status.

What are the Colorado income tax brackets for 2025?

Colorado does not have income tax brackets for tax year 2025. Colorado uses a flat rate of 4.4% for all filers. See the Colorado income tax rates table above for filing-status details.

How does Colorado state income tax work?

Colorado state income tax generally starts with your federal taxable income, then applies Colorado additions and subtractions on Form DR 0104 to arrive at Colorado taxable income. Colorado then applies its flat 4.4% rate to that amount. Credits such as the Colorado Child Tax Credit or Colorado Earned Income Tax Credit may further reduce your tax or increase your refund.

Do I have to file a Colorado state tax return?

You may need to file a Colorado state tax return (Form DR 0104) if you are a full-year resident of Colorado, a part-year Colorado resident who received taxable income while residing in Colorado, or not a resident of Colorado, but received income from sources within Colorado. Colorado residents must file a return if they are required to file an income tax return with the IRS, even if they do not have a Colorado tax liability. Check the Colorado Department of Revenue guidance for your situation.

What is the Colorado standard deduction for 2025?

Colorado does not have its own standard deduction. Instead, Colorado taxable income generally reflects the federal standard deduction or itemized deductions you claim on your federal return. See the Colorado standard deduction table above for 2025 federal amounts and the high-income addback rules that may apply.

How much is Colorado state income tax?

There isn’t one Colorado state income tax amount that applies to everyone. How much Colorado state income tax you owe depends on your Colorado taxable income, Colorado additions and subtractions, and credits. Colorado applies a flat 4.4% rate to Colorado taxable income after those adjustments.

Why is my Colorado tax return different from my federal return?

Colorado generally uses federal taxable income as a starting point and follows rolling conformity with the Internal Revenue Code. This means many provisions of the Working Families Tax Cut Act (One Big Beautiful Bill or OBBB) that affect federal taxable income can also affect Colorado taxable income unless Colorado law requires a state-specific addition, subtraction, or other adjustment. As a result, your Colorado taxable income, deductions, or credits may differ from your federal return.

The good news is that our tax software automatically applies Colorado’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information on Colorado tax law, visit the Colorado Department of Revenue. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

Colorado uses a flat 4.4% income tax rate for 2025 and generally bases Colorado tax on federal taxable income plus state-specific adjustments. Understanding Colorado subtractions, the Colorado Child Tax Credit, and the Colorado Earned Income Tax Credit can help you estimate what you may owe — and what you may get back.

When you’re ready to file, TaxAct can help you prepare your federal and Colorado returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Colorado state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Colorado Department of Revenue. “Individual Income Tax Guide.” Accessed 28 July 2026.
Colorado Department of Revenue. “Colorado Child Tax Credit.” Accessed 28 July 2026.
Colorado Department of Revenue. “Income Tax Topics: Earned Income Tax Credit.” Accessed 28 July 2026.
Colorado Department of Revenue. “Child Tax Credit (CTC) & Earned Income Tax Credit (EITC) FAQs.” Accessed 28 July 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My Colorado State Tax Refund?” TaxAct Blog.

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Tags: Filing StatusState TaxesTax DeductionsTax RefundUpdated for tax year 2025

Meghen Ponder: Meghen Ponder is an editorial writer for TaxAct who specializes in writing content about finance and taxes. She enjoys decoding the intricacies of the tax world and helping others answer their tax questions.