Colorado State Taxes: A Simple Guide
Colorado has a state income tax, sales and use taxes, and local property taxes. This guide explains the basics for individuals in clear, everyday language.
ℹ️Important: This is a general overview. Tax rules, rates, and local details change over time. Always rely on official Colorado guidance or a tax professional for specific advice.
🏔️Colorado state income tax
Colorado taxes personal income under its own rules, separate from the federal system. In general:
- •Residents with income above certain thresholds generally must file a Colorado income tax return.
- •Nonresidents may need to file if they earn income from Colorado sources.
- •Colorado's rules for taxable income, deductions, and credits are not identical to federal rules.
A typical Colorado resident will file a federal Form 1040 plus a Colorado state income tax return if they meet the filing requirements.
🛒Sales and use tax
Colorado has a state sales tax, and cities, counties, and special districts can add their own sales taxes. The combined rate varies depending on where the sale happens.
- •Many retail sales of goods are taxable; some items are exempt or taxed differently.
- •If you buy taxable items online or from out of state without being charged tax, you may owe use tax to Colorado.
Businesses selling taxable goods or services usually must collect and remit sales and use taxes to the state and local jurisdictions.
🏡Property taxes
Property taxes in Colorado are assessed and collected primarily by counties and local governments. They are based on the assessed value of real property like homes and land, with different classifications for residential and nonresidential property.
- •Homeowners receive property tax bills from their county treasurer.
- •Colorado has specific rules and programs that can affect property tax calculations and possible relief.
- •Property taxes help fund schools, local governments, and public services in your area.
Because property taxes are local, rates and available relief programs vary by county and community. Check with your local assessor's office for details.
🔗How Colorado taxes fit into your overall picture
A typical Colorado resident might see several types of taxes each year:
- •Federal income tax (Form 1040)
- •Colorado state income tax
- •State and local sales and use taxes
- •Local property taxes if they own a home
Once you understand federal basics like taxable income and how to file your taxes, you can more easily see how Colorado's rules change the full picture.