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One-third of one percent of state taxable income is credited to the State Education Fund pursuant to the requirements of Amendment 23. The Department of Revenue publishes information on income tax expenditures, including subtractions, deductions, and credits, in its biennial Tax Profile and Expenditure Report. Colorado income tax credits are then subtracted from this amount to arrive at the net Colorado income tax (the amount paid by a Colorado taxpayer). To calculate the Colorado income tax, a “flat” tax rate of 4.55 percent is applied to federal taxable income after adjusting for state additions and subtractions, the largest and most common of which are listed below. Policy that changes federal taxable income will also change Colorado taxable income. Taxpayers can consult the Department of Revenue’s filing guide for instructions to complete Colorado Individual Income Tax Form 104.Ī taxpayer’s Colorado income tax liability is calculated as follows:įederal taxable income serves as the base for Colorado income tax. These forms allow taxpayers to calculate and report how much income tax has already been paid to the state of Colorado through withholding and estimated payments and how much is still due for a given tax year. Higher income earners may be required to pay the alternative minimum tax (AMT) in addition to the income tax.Ĭolorado individual income tax returns (Form 104 and any tax payment owed) for a calendar year are due to the Department of Revenue on or before the following April 15th unless an extension is granted. Estimated tax is used to pay the alternative minimum tax and self-employment tax. These payments are filed quarterly or annually depending on the type and source of income earned. Withheld taxes are submitted by employers to the Colorado Department of Revenue.Įstimated payments include income for self-employed individuals, as well as income from dividends, interest, capital gains, rent, and royalties. For wages and salaries, the amount withheld is determined using Colorado form DR 1098. Compensation for employment and earnings from certain other income sources (including pensions, bonuses, commissions, and gambling winnings) are withheld from the employee’s paycheck by his or her employer.

Individuals and some businesses pay individual income taxes through withholding or through estimated payments. Heads of households: $19,400 for tax year 2022Īnd the agency recently announced the retirement plan contribution changes for 2022.Source: Colorado Revised Statutes and Legislative Council Staff.Single taxpayers and married individuals filing separately: $12,950.Married couples filing jointly: $25,900.The above rates apply to taxable income, after the standard deduction (or itemized deductions) and other tax breaks have been taken. The IRS also announced that the standard deduction for 2022 was increased to the following: Your state may have different brackets, no taxes at all or a flat rate. These are the rates and income brackets for federal taxes.