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Colorado Individual Taxes

Colorado assesses a flat tax of 4.55% of an individual's federal taxable income, one of just nine states having a single-rate tax structure. The state sales tax rate of 2.9% is the lowest of the states that levy a sales tax.

Since most small businesses are either S Corporations or partnerships or sole proprietorships, these companies pay the individual rate for their business taxes. Colorado's low individual income tax rate results in an extremely competitive tax environment compared to other states for small businesses.

 

State Corporate and Personal Income Tax

Tax years beginning on or after:
Percentage
January 1, 2000
4.63%
January 1, 1999
4.75%
Prior to January 1, 1999
5%