Colorado state income tax rate 2027

The statutory rate

Colorado Revised Statutes 39-22-104(1.7)(c) imposes a tax of "four and forty one-hundredths percent" on the federal taxable income of every individual, estate and trust for taxable years commencing on or after January 1, 2022. The earlier paragraphs show 4.63% for 2000 through 2019 and 4.55% for 2020 and 2021, so the flat rate has stepped down in the past. For 2027 the statute still reads 4.4%.

Why the rate you pay can be lower

Each paragraph opens "except as otherwise provided in section 39-22-627". Section 39-22-627 directs the executive director of the Department of Revenue to temporarily reduce the rate for the income tax year that begins in the calendar year a state fiscal year ends, when revenue above the constitutional spending limit that must be refunded exceeds a statutory amount. For 2027 that test turns on the fiscal year ending June 30, 2027, so a 2027 reduction cannot be known today. This page projects 4.4% and lets you override the rate if the Department of Revenue announces a lower figure.

The federal deduction flows through

Because the tax is on federal taxable income, Colorado's effective standard deduction is the federal one: $16,100 for single filers and $32,200 for married couples filing jointly for tax year 2026 (Tax Foundation, February 2026). The 2027 federal amounts are indexed and will change. Colorado has no separate state personal exemption in this calculation.

Worked example

Single, $75,000 of wages, a $16,100 deduction: taxable income $58,900 and tax $2,591.60 at 4.4%, an effective 3.46% of wages. A couple with $120,000 of wages and a $32,200 deduction: $87,800 taxable and $3,863.20 tax. Dependent credits and the child tax credit are not modelled. For net pay see the Colorado paycheck calculator.

Who this is for, and what it does not cover

It is for employees and planners estimating Colorado state income tax on wages for 2027. It does not cover local income taxes, tax credits, retirement or investment income, self-employment tax, federal income tax or payroll taxes, and it does not file or submit anything. The result changes if you enter a different rate, so use the rate box when the state announces a final 2027 figure.

FAQ

What is the Colorado state income tax rate for 2027?

CRS 39-22-104 sets 4.4% of federal taxable income for taxable years beginning on or after January 1, 2022, subject to section 39-22-627. 2027 is projected at 4.4%.

Is Colorado income tax flat?

Yes. One rate applies to federal taxable income, with no state brackets.

What is the TABOR income tax reduction?

Section 39-22-627 lowers the rate for a tax year when state revenue exceeds the constitutional limit. Whether it applies is decided after the fiscal year closes.

What is the Colorado standard deduction?

Colorado starts from federal taxable income, so the federal standard deduction applies: $16,100 single and $32,200 joint for 2026, with the 2027 amounts still to be indexed.

Has Colorado's rate changed before?

Yes. The statute shows 4.63% from 2000 through 2019, 4.55% for 2020 and 2021, and 4.4% from 2022.

Is this my final 2027 Colorado tax?

No. It is a projection at 4.4% using the 2026 federal deduction. Credits and any TABOR reduction are not modelled.

Sources

Retrieved 2026-11-01. Each link was opened and checked against the claim next to it; where a page blocks automated readers a dated archive copy is named.

• C.R.S. 39-22-104 (Colorado.Public.Law): The 4.63%, 4.55% and 4.40% rates by period and the reference to section 39-22-627.
• C.R.S. 39-22-627 (Colorado.Public.Law): The temporary income tax rate reduction tied to refunds of excess state revenue.
• Tax Foundation: State Individual Income Tax Rates and Brackets, 2026: The 4.4% rate for 2026 and the federal standard deduction flowing into Colorado.